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Premier League to allow Newcastle to make Saudi Arabian sponsorship deals
Published 16:32 14 Dec 2021 GMT
Updated 09:06 15 Dec 2021 GMT
Homesport
It will be down to the Premier League board to decide what 'fair market value' is
The Premier League will allow Newcastle United to make sponsorship deals with Saudi Arabian companies, providing that the league considers them "fair market value". It was announced on Tuesday that Premier League shareholders had removed the temporary block put on the club since it was controversially taken over by the Saudi Arabian Public Investment Fund. There was a concern amongst many that the Magpies would be able to agree deals with companies closely linked to the PIF, which would subsequently be used to increase their spending ability under Financial Fair Play (FFP) rules. In October, the Premier League enforced a five-week ban on related-party sponsorship deals, but it was later agreed that the temporary ban would be lifted - with the suggestion of blocking all related commercial deals quickly dismissed. https://twitter.com/SamWallaceTel/status/1470732582799224834 Now, it has been revealed that it will be down to the Premier League board to decide what exactly "fair market value" is. They have also agreed that what are regarded as 'associated party transactions' will be allowed but they will be subject to heavy scrutiny, as per the BBC.To help the Premier League board, guidance will be provided from an independent external assessor on deals.
Additionally, they will be given access to a private data bank - created by the Premier League - which will gather information on previous commercial deals across the division to assess their value.
The hope, therefore, is that it will help to prevent manipulation of FFP regulations.
A number of Premier League sides were reportedly opposed to the takeover, which will see the exit of Premier League chairman Gary Hoffman at the end of January.
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