Newcastle owners opt in on working party as EPL attempt to prevent NUFC sponsorship deals
Last week Premier League clubs called an emergency meeting to try and stop the new Newcastle United owners progressing their plans at St James Park.
So many Premier League clubs acting as an organised entity (cartel?) as they try to stop Newcastle United signing new lucrative sponsorship deals that will help the rebuilding of NUFC, after over 14 years of Mike Ashley neglect.
The vote was won by the 18 Premier League clubs acting together, voting for a temporary rule change, for a month initially, the move intended to stop commercial arrangements that involve pre-existing business relationships.
Even though it would apply to all Premier League clubs, the emergency meeting and vote was obviously all about stopping Newcastle United trying to compete and catch up with other clubs.
Newcastle United said at this provocative meeting that they had taken legal advice and that it made clear this attempted rule change was unlawful. That this brazen attempt by the other Premier League clubs would be shown to be anti-competitive if / when challenged legally.
As stated above, 18 Premier League clubs were in favour of this pre-emptory strike against Newcastle United, who were the only club to vote against the change, although Manchester City abstained, reported to have done so they were also reported to have had legal advice informing them that the attempted move is unlawful. City having already benefited from these type of ‘related party transactions’, one big example was the one that saw Etihad Airways become a key sponsor.
The new temporary rule applies to all 20 Premier League clubs into mid-November (2021) but the intention of these clubs is to try and make this a permanent arrangement, to prevent related party transactions, or at least ensure that a ‘fair market’ price is agreed on any sponsorship deals.
The meeting agreed for a working party to be set up, to use the month whilst the temporary block is in place, to investigate what changes should be put in place long-term, with Newcastle United invited to be part of this working party on the issue.
Now on Wednesday (27 October 2021), The Athletic report that their information is that Newcastle United did decide to be part of this working group, that will look more closely into the issues and come up with suggested longer-term solutions / rules.
The Athletic say that the multi Premier League club working party, consists of people from a mixture of clubs, that includes chief executives, lawyers, accountants and commercial directors.
The working group are set to report back with recommendations to all Premier League clubs at the next PL shareholders’ meeting on November 11, in which they will discuss potential solution(s) they have came up with.
Whilst some people would see Newcastle United participating in the working group as potentially helping to legitimise the whole process, no doubt the new NUFC owners thought it essential to have representation inside the group to ensure that they are fully briefed at every step, on what is being said and attempted to be put in place by these other Premier League clubs ganging up on them, to try and prevent Newcastle becoming competitive.
By the very nature of the fact that it was an emergency meeting and vote called last week, it is patently obvious this is all about trying to prevent Newcastle United moving forward with their plans, even more reason to believe the other Premier League clubs are on very shaky ground legally, when they have made it so transparent they are banding together against another club.
Imagine what the panic will be like amongst these other Premier League clubs when NUFC actually win a football match under these new owners!
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