Premier League clubs block Newcastle sponsorship deals in blow for new Saudi owners

·1-min read
Newcastle chairman Yasir Al-Rumayyan (centre left) and part-owner Amanda Staveley (centre right) watch their new club lose to Spurs (AFP via Getty Images)
Newcastle chairman Yasir Al-Rumayyan (centre left) and part-owner Amanda Staveley (centre right) watch their new club lose to Spurs (AFP via Getty Images)

Premier League clubs have united in a bid to limit Newcastle United’s ability to secure lucrative sponsorship deals following their Saudi takeover.

At an emergency meeting on Monday a vote was passed that ensures the club’s new owners would not be able strike hyper-inflated arrangements involving pre-existing business relationships.

Amid fears the Public Investment Fund of Saudi Arabia, which completed its takeover of Newcastle two weeks ago, would be able to land deals with companies in its homeland, the Premier League have invoked a temporary ban on such deals.

Clubs believed it would be anti-competitive and sought for measures to be put in place that mean any arrangements would be blocked or secured for a fair market value.

The vote was passed with an 18-2 majority.

Other than Newcastle, the only other club to object the motion was Manchester City, who are owned by Abu Dhabi. The Premier League champions have been subject to investigations over their sponsorship – but were last year cleared by the Court of Arbitration for Sport after UEFA banned them from the Champions League for two seasons following “serious breaches” of Financial Fair Play.

The initial legislation will be in place for only a month, but clubs will seek for a permanent arrangement to be put in place.

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