Ian Wright gives his verdict on Man City sponsorship row as Gary Neville makes Newcastle claim
James Rutherford
5 – 6 minutes
Newcastle United fans are waiting to see how the recent Premier League sponsorship ruling will impact them after Manchester City declared victory in their tribunal.
Both Manchester City and the Premier League believe they were the winners, as a panel ruled on associated party transactions.
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Those rules were changed after the Newcastle United takeover, with Premier League clubs acting to ensure that PIF could not agree over-inflated sponsorship deals that would increase the club’s revenue and allow them to spend more.
It was a clear attempt to stunt Newcastle United following the change of ownership, with clubs fearful of another superpower emerging in English football. However, it was Manchester City who went down the legal route and challenged the Premier League, rather than Newcastle.
Manchester City have stated that the tribunal found that the Premier League’s rules regarding APT were unlawful. Meanwhile, the Premier League have stated that the tribunal found that the APT rules are necessary, despite some changes needing to be made.
The Newcastle United and Manchester City club crests on their first team home shirts on May 14, 2020 in Manchester, England.
Photo by Visionhaus
It is a very complicated and messy situation, and it could only get messier in the eyes of Gary Neville.
He has been speaking about the Manchester City vs Premier League ruling on the latest episode of Stick To Football alongside Roy Keane, Wayne Rooney, Jill Scott and Ian Wright.
In the eyes of Wright, it is ‘crazy’ that clubs can agree sponsorship deals with associated partners.
Wright: “For them to want associated partners to be able to just sponsor and say whatever they want without saying well it doesn’t cost that much. It’s crazy. You can’t allow that. It would be crazy. You could do anything you want. That’s what they want. They want to be able to do anything.”
Neville: “It was stopped. That’s what Newcastle were not allowed to do – those type of deals. It was stopped a few years ago.”
Wright: “That shouldn’t have happened in the first place, and this is the problem. We’ve went down the road of countries owning football clubs and they want to what they do. It used to be business against business. Now it’s business against country. What chance have you got? Of course they want more, because they’ve got more. They want to put more in, they’re going to find any way they can to put more into their team.”
Neville: “It’s going to get quite messy, I think.”
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Newcastle United have been held back by fear
From a Newcastle perspective, there is a feeling that the club is being held back by its rivals. It is not fair that a ruling was brought in to stop them from doing something that they might not even have done.
Since the takeover, Newcastle have done sponsorship deals with companies in Saudi Arabia. Sela are shirt sponsors, while Noon are the sleeve sponsor. There have also been deals with Saudia and Savvy Games Group, as Newcastle look to increase their revenue and their visibility in Saudi Arabia.
The Magpies have complied with the Premier League’s rules, despite the best efforts of others to hold them back. They do not want another Manchester City, with Pep Guardiola’s side dominating English football.
That fear is understandable, but it does not appear to be a level playing field. While Newcastle are scrambling to comply with PSR, other clubs are benefitting from loans from shareholders that do not impact profit and sustainability. That is completely unfair, although there is absolutely a need for fair market value.
What this means for Newcastle United
Financial expert Adam Williams has told Geordie Boot Boys that the ruling will be celebrated by Newcastle, although he does not necessarily believe it is as big a story as it has been made out.
Meanwhile, Newcastle have held talks with potential sponsors in Saudi Arabia in recent months, and it will be interesting to see if a restructuring of the rules results in these deals being accelerated.
However, it remains to be seen if this will be the financial green light that some Newcastle United fans think it will be.
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