Rushed through by a rattled Premier League, the 2021 version of the associated party transaction (APT) rules were a direct response to the Newcastle United takeover.
At the time it felt like the established order striking decisively against pretenders to the elite. But could it end up being the straw that broke the camel’s back for the Premier League’s financial fair play system?
Friday’s news that the APT rules between 2021 and 2024 are “null and void” is not game, set and match to Manchester City.
Premier League sponsorship rules declared 'void' after Man City legal challenge
Read MoreAnyone stating that – or that the path is now clear for overblown, state-sponsored deals to be waved through with minimum fuss – is clearly getting ahead of themselves. But at a time when the Premier League’s rules are being attacked from all sides, it does feel like the first tremors of a potential earthquake coming down the line.
The APT alterations in 2021, in retrospect, seemed to go too far. Remember Amanda Staveley saying that Newcastle were “p—– off” by an organisation being able to change the rules in an instant to make it harder for the club to attract big sponsors?
That City have been able to convince a tribunal of that fact – and have another legal action pending that could tear up the new set of rules – feels very significant.
For the moment nothing changes. Just like the profitability and sustainability rules (PSR) that will run for one more year, everyone is waiting for the more significant legal cases to come.
City’s 115 charges verdict is imminent and, it should be noted, they are increasingly confident on that one too. Who knows what the ramifications will be if they win that case.
'Disgusting': Newcastle fans quoted £8k for Carabao Cup final resale tickets
Read MoreIn the here and now Newcastle, Nottingham Forest and Aston Villa – three clubs that voted against the most recent APT amendments – will be able to go for damages over any deals denied. Given the difference adding a few more million to the bottom line might make in the PSR world, that could be significant.
Beyond that, slacker APT rules would give Newcastle options. They are yet to line up big-ticket sponsors for their training ground, stadium or warm-up kits: multi-million deals with PIF-aligned companies down the line might yet help move the dial in their favour.
But, as one source pointed out on Friday night, there will always be some form of fair market valuation in the rules so the idea of Saudi sponsors being able to over-inflate deals is for the birds.
The i Paper has consistently been told PIF wouldn’t be minded to do it anyway, given they see Newcastle as an investment rather than a vanity project.
Much will depend on what the Premier League do next.
Inside Newcastle's fight to keep Isak out of Arsenal and Barcelona's clutches
Read MoreA bullish statement on Friday night indicated that they remain confident in the current version of the rules. But experts aren’t so sure clubs have a stomach for further expensive fights.
“Manchester City will clearly be delighted with this result but also challenger clubs like Newcastle, Aston Villa and Nottingham Forest will be looking at their options in terms of potential compensation for the deals they’ve been denied in the past few years in terms of whatever City will be able to claim,” football finance expert Kieran Maguire – a busy man these days – told The i Paper.
“The other clubs in the Premier League will be having a long and soulful thought as to whether they want to go forwards because at present they’ve got effectively unknown levels of liability in terms of this case and potentially a huge bill if Manchester City are successful on the 115 charges.
“The vast majority of clubs don’t really care because they don’t see themselves as competing clubs and they probably take the view that Newcastle and Villa will eventually establish themselves as part of the elite anyway.”
It is a sobering thought for those who wanted to block their way that their 2021 power play may have come back to haunt them.
Read More Details
Finally We wish PressBee provided you with enough information of ( What the ‘void’ sponsorship ruling means for Newcastle, Aston Villa and Forest )
Also on site :
- Everything You Need To Know About 'Dancing with the Stars' Season 34
- Iran sanctions state TV channel for mocking Saudi Foreign Minister
- Elon Musk claims Tesla demonstrators are somehow being paid by the government ‘waste and fraud’ he is fighting with DOGE—they just won’t admit it