Man City receive major boost after Newcastle United PIF complaint & £305m deal reaction
Manchester City appear to have secured a ‘significant victory’ in their legal battle against the Premier League.
Manchester City appear to have been successful in their legal challenge. against the Premier League’s associate-party transaction (APT) rules. According to The Times, a vote on the APT rule amendments was dropped on Thursday.
APT rules were introduced by the Premier League following Newcastle United’s £305million takeover by the Saudi Arabian Public Investment Fund in October 2021. The rules temporarily banned Premier League clubs from striking commercial deals with companies linked to their owners.
With PIF having a large portfolio of companies, the rule change stifled Newcastle’s commercial progress. While the temporary ban has since been lifted, Premier League clubs must ensure all commercial deals are independently assessed to represent ‘fair market value’.
Former Newcastle co-owner Amanda Staveley hit out at the rule change that was seemingly introduced as a reaction to Newcastle’s high-profile takeover. Now Manchester City have challenged the Premier League over the changes.
City have argued that the APT rules are unlawful and are seeking ‘damages for the losses’. The verdict could have consequences for Newcastle as they look to raise their commercial revenue. While The Magpies have agreed deals with PIF-companies Noon and Sela, to become sleeve and main shirt sponsors respectively - both deals had to be independently assessed and approved to be of ‘fair market value’.