Manchester City are battling the Premier League over the Associated Party Transaction (APT) rules
Football monetary expert Stefan Borson believes Newcastle United will be rooting for Manchester City in their legal case against the Premier League.
While the champions are defending 115 charges relating to alleged financial misdemeanours, this separate battle sees City take on the top flight over Associated Party Transaction (APT) rules. The regulations were introduced in December 2021 following Newcastle’s takeover two months earlier.
Under the system, clubs, players, managers, and senior officials must disclose transactions with associated parties and the Premier League reviews each commercial deal to assess whether they reflect fair market value. For Man City, their relationship with Etihad as stadium and front-of-shirt sponsor falls under that bracket as the airways are owned by the Abu Dhabi sovereign wealth fund.
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Newcastle have also seen closer ties with Saudi-linked companies since Mike Ashley’s exit three years ago. Sela replaced FUN88 as the club’s main partner last season in a reported £25million per year deal.
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The events company are owned by PIF, the sovereign wealth fund that owns an 85 per cent stake in the Magpies. Likewise, PIF also own 50 per cent of Noon, Newcastle’s sleeve sponsor.
Financial advisor Borson, who previously worked for Man City, insisted Newcastle will be a likely ally when they take on the Premier League. He told Football Insider: “If City were successful in their challenge of the associated party transaction rules, that could open up some more possibilities for some sizable Saudi deals for things like the training ground and maybe some other properties that Newcastle have.
“But in the absence of that, Newcastle have a tough year this season from a financial perspective. They have lost £40million of European revenue compared to last season. Just getting to the same level of revenue is going to be a challenge.”
