The Premier League’s move to change the Associated Party Transaction (APT) rules governing commercial deals has been voted though at a meeting in London.
Newcastle United were one of four clubs to vote against the changes alongside Manchester City, Aston Villa and Nottingham Forest, with the remaining 16 teams voting in favour, according to The Athletic.
At least 14 clubs needed to vote in favour of the move for it to go through and the results come despite an independent panel finding aspects of the regulations to be unlawful earlier this year, after Manchester City instigated a lawsuit.
Newcastle could have been in the position to benefit and strike ‘huge’ PIF deals had the vote gone the other way, but what does today’s ruling mean for the club going forward?
Geordie Boot Boys spoke exclusively to GRV Media’s finance expert Adam Williams on the outcome and what will happen next for Eddie Howe’s side.
Newcastle United can take positives from APT vote
Williams believes that this is a blow to the ‘mini alliance’ involving the St James’ Park side, but there are positives to be taken.
“It looks like the vote was 16-4 in favour of the Premier League,” he said.
“Newcastle were one of the clubs to have sided with Man City alongside Aston Villa and Nottingham Forest.
“At one point, it looked like Chelsea, Everton and Wolves would be on their side. If that had been the case, they would have had enough support for a veto.
“That hasn’t transpired and is a blow to the mini alliance that many fans thought was forming behind the scenes.
“I think Newcastle can take some comfort from the minor victories that Man City have scored in the case, such as opening access to the database of commercial deals struck by Premier League clubs.
“That will give them more data to go off when pushing for the biggest sponsorship deals possible while staying within the parameters of fair market value.
“One theory I have heard there is that having access to the databank could see them nudge the value of their sponsorship deals with associated parties incrementally over a few seasons.
“That would be mission creep, effectively raising the fair market value bar for themselves.”
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Williams adds that a change to the system could have been massive for the Magpies.
“Had the whole APT system been declared null and void as City were arguing, that would have been hugely transformative for Newcastle,” he continues.
“But my reading would be that, while that might be a plus for Newcastle, it is not a new panacea in terms of their headroom under PSR.
“We will need to wait for the actual drafting of the new APT rules to be released before we can say for certain, but at the moment I think the whole affair will have had a lukewarm reaction in the Newcastle boardroom.”
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