A Premier League loophole that had been allegedly used by Manchester City to pay former manager Roberto Mancini extra financial benefits has been closed.
While much focus during the past fortnight has been on the Premier League's efforts to get tougher on related party transactions in the wake of the Newcastle United takeover by the Saudi Arabian Public Investment Fund, one loophole in the League's rules that allowed players and staff to agree extra salaries, bonuses or endorsement deals with companies related to their club's owners has closed.
The influx of new money into the Premier League, such has been the case with the Newcastle takeover by a PIF fund worth some £380bn, had created some concern that Liverpool's business like approach would be caught up swiftly by clubs being able to, and being more willing to spend more aggressively.
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Financial Fair Play exists, although confidence in that has been shaken by the overturning of UEFA's Manchester City ban by the Court of Arbitration for Sport. City had been accused of inflating sponsorship deals above fair market value and were handed a two-year European ban, only for CAS to throw that out on appeal, citing a lack of evidence.
Investigations into Paris Saint-Germain also yielded little in the way of any sanctions, and supporters anticipated that Newcastle's new found wealth would allow them to challenge in the near future.
While Newcastle have plenty of spending room, some £200m, before they have to be concerned with FFP rules, the cost of the rebuilding job at the club will take a considerable amount of time.
There had been suggestions that Newcastle could look to related party transactions to raise their commercial revenues and ease any FFP worries, providing them with more to spend. And while they will undoubtedly see some rises in commercial revenue through new deals, a crackdown on such transactions and making sure they are in line with fair market value, as well as a now closed loophole to supplement income through other means, it goes some way to protecting Liverpool and the likes from having to fend off clubs with significantly wealthier owners but with vastly inferior balance sheets.
PA report that a working group featuring representatives from eight Premier League clubs has drawn up proposals designed to strengthen financial regulations, with particular emphasis on deals related to a club's ownership.
Under the changes, clubs will have to declare any payments to players or staff from owner-related parties to the Premier League. These payments would also have to be included in FFP calculations.
In November 2018, German magazine Der Spiegel reported former Manchester City manager Roberto Mancini had been paid by the club but also received an extra, larger annual salary as a consultant for Al Jazira Sports Club in Abu Dhabi.
Manchester City, owned by Sheikh Mansour, a member of the Abu Dhabi royal family, did not confirm or deny those reports at the time they emerged. The club have been asked for fresh comment.
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Simon Cliff, the general counsel at City Football Group, is understood to be one of the members of the Financial Controls Advisory Group (FCAG), alongside new Newcastle director Amanda Staveley.
Also on the group are Arsenal chief financial officer Stuart Wisely, Aston Villa chief executive Christian Purslow, Burnley chairman Alan Pace, Chelsea chairman Bruce Buck, Everton finance director Grant Ingles and Manchester United general counsel Patrick Stewart.
The closure of this loophole does mean that any hopes that were had by fans over relationships with the likes of Nike being able to go someway to helping to bring about the arrival of prominent associated footballers to Anfield disappear.
Last year, Manchester United's former club sponsors Chevrolet were forced to deny that they were willing to help fund the return of Cristiano Ronaldo to Old Trafford, a move mooted long before it actually transpired during the summer.
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"Any stories of Chevrolet being involved in transfer deals or funding any activity for players are not true and fabricated," the company told Insider.
The moves made by the FCAG in recent weeks have attracted more attention due to their timing around the arrival of Newcastle's enormously wealthy new owners, with a number of Premier League clubs having expressed their disapproval to officials having been led to believe the deal would not be taking place a few months prior.
The new proposals, it is said, are intended to maximise transparency and ensure financial discipline, and the group's discussions have not been contentious, PA understands.
