LONDON, Oct 19: English Premier League clubs moved on Monday to prevent Newcastle immediately striking lucrative sponsorship deals with companies linked to its new Saudi ownership.
Clubs held an emergency meeting to impose a freeze on any of them agreeing to commercial arrangements with businesses their owners are associated with, a person familiar with the decision told The Associated Press. The person spoke on condition of anonymity to confirm details of a report published by The Guardian late Monday.
Newcastle was joined by Manchester City in resisting the move to prohibit clubs agreeing to related-party transactions, the person said.
But it passed with 18 votes in favor as Newcastle opposed and City abstained after it questioned the legality of the ban, another person said on condition of anonymity because they were not authorized to discuss a private meeting.
Since being bought by Abu Dhabi’s Sheikh Mansour in 2008, City has amassed sponsorships from companies linked to the emirate with Etihad Airways having the naming rights to the stadium and appearing on team jerseys. City insists they are paying fair market value
Premier League rivals are worried Newcastle will use friendly sponsorship deals with related parties to help it comply with financial fair play rules that are in place to prevent rich clubs from spending unchecked.
Under league rules, clubs are allowed to make losses of 105 million pounds over a rolling 3-year period. (AP)
EPL clubs move to prevent Newcastle from signing lucrative sponsorship deals
Date:
Share post:
