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Top-flight clubs in sponsorship row over Toon

By Rob Draper

THE Premier League is set for a bitter battle among leading clubs next month over the Saudi takeover at Newcastle United as a raft of clubs seek to outlaw sponsorship deals from friendly businesses associated with competitor clubs.

Newcastle director Amanda Staveley is expected to attend the shareholders meeting next month to respond in person to Monday’s emergency Premier League meeting, which led to a vote being taken for a one-month moratorium of any club concluding sponsorship deals with related parties.

Monday’s meeting was called to discuss the Newcastle takeover by the Saudi sovereign wealth fund, the Public Investment Fund and the vote on the moratorium was proposed by Crystal Palace owner Steve Parish.

It was seemingly sparked by the fear that Newcastle will announce huge sponsorship deals with Saudibacked companies and threaten other clubs. Eighteen clubs backed the move, with Manchester City abstaining and Newcastle voting against. A working committee is now being appointed to tighten up the current rules.

It is likely that the committee will study the suggestions of Project Big Picture, which proposed that related-party sponsorship deals were limited to £50million.

It has been suggested by sources close to the talks that the Premier League will establish a permanent independent body to assess fair value for all new deals, to prevent Newcastle claiming their shirt sponsors, estimated at £5m a year, is suddenly worth £25m. Yet sources at the club have pointed out that any future sponsorship deals would be pricing in the expected success of the club two or three years down the line and will be worth more than current deals.

Given that such rules will not be ready for next month’s Premier League shareholders meetings, it is expected that the moratorium will be extended. Newcastle’s new owners are firmly of the view that such a move would be akin to a cartel and as such illegal.

But they also believe the majority of clubs will come round to the view that Saudi investment will boost the Premier League’s value.

Football

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2021-10-24T07:00:00.0000000Z

2021-10-24T07:00:00.0000000Z

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