Newcastle United could be poised for a significant boost after Manchester City won their ongoing legal battle against the Premier League’s ATP regulations, according to finance expert Adam Williams.
Manchester City are contesting the legality of the Premier League’s Associated Party Transaction (APT) rules, which were designed to prevent clubs from inflating commercial deals with owner-related entities to bypass financial limits.
City’s legal battle, initiated after the club was charged with 115 FFP breaches, has resulted in rulings that suggest parts of the APT rules could be revised.
If Manchester City succeeds in its legal case, Newcastle could experience greater financial flexibility. Since their takeover by the Saudi Public Investment Fund (PIF) in 2021, Newcastle’s strategy has heavily focused on increasing commercial revenue.
However, the APT rules have restricted the club’s ability to fully leverage commercial opportunities tied to their ownership.
Williams highlighted that Newcastle could gain the freedom to negotiate more lucrative deals with owner-related entities, which would enhance their financial flexibility under the Premier League’s Profitability and Sustainability (PSR) framework.
He suggested that this financial freedom could be crucial for Newcastle to invest more in player transfers and accelerate infrastructure improvements, such as renovations at St. James’ Park or even the development of a new stadium.
Williams noted that Newcastle’s primary approach to navigating the PSR framework has centred around boosting commercial income. Although player trading and stadium development are part of their long-term strategy, commercial deals remain the club’s key to unlocking more financial flexibility.
Speaking to Geordie Boot Boys, Williams stated:
“Newcastle’s strategy to circumvent PSR so far has focused almost entirely on commercial income.
“Yes, there are plans to improve St James’ Park or perhaps move to a new stadium entirely,…
Source link : https://www.caughtoffside.com/2024/10/08/how-newcastle-will-benefit-from-manchester-city-legal-win/
Author : Mehdi Gokal
Publish date : 2024-10-08 21:06:44
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