Newcastle United owners can now sign up new sponsors after Premier League clubs Tuesday vote
Premier League clubs called an emergency meeting in October 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, 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, 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 applied to all 20 Premier League clubs into mid-November (2021) but the intention of these clubs was 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.
Then there was a further (virtual) meeting of the 20 Premier League clubs on Friday 26 November, which further extended the temporary ban on related party transactions until 14 December 2021, which is today.
Now we have The Telegraph reporting it as ‘breaking news’, that the Premier League clubs have voted today and passed a motion, once again allowing these related party transactions.
The Telegraph reporting – 14 December 2021:
“Premier League clubs have voted to pass new rules governing related-party transactions.
“Opens the door, for example, for Newcastle United to strike commercial deals with Saudi companies/entities judged by Premier League to be fair market value.”
We now await with interest to see what the Newcastle United owners do.
My guess is that we will hear something very soon…
The Newcastle United owners would obviously have been aware for some time that this vote was going to happen today and that it was going to be passed.
I don’t think any coincidence that last week we have seen the removal of the presence of Sports Direct from St James Park and indeed Newcastle United in its entirety.
It was previously reported that the Sports Direct signs remaining at St James Park, was at least in part due to the delay in being able to bring in these new sponsorship deals.
Interesting then that when we turn up on Sunday for the Man City match at St James Park, what we will see. Sports Direct simply removed, or replaced already with something else? I think we may well hear an update from the Newcastle United owners before Sunday’s game.
The original meeting in October agreed for a working party to be set up, to use the time that the temporary block was / 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. Newcastle later confirmed to have agreed to be part of that working party to look more closely into the issues and come up with suggested longer-term solutions / rules.
By the very nature of the fact that it was an emergency meeting and vote called in October 2021, made it patently obvious this was all about trying to prevent Newcastle United moving forward with their plans, or at least delay as much as possible and / or limit the sums involved, even more reason to believe the other Premier League clubs were on very shaky ground legally, when they have made it so transparent they are banding together against another club.
What exactly is ‘fair market value’…well, I’m guessing that moving forward this won’t be the last we hear of this, as the Newcastle United owners do their very best to bring in the most lucrative sponsorship deals possible.
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