Exclusive: PIF well placed to agree big-money Newcastle deals after Man City twist
Newcastle United’s owners are now better placed to agree significant sponsorship deals as Manchester City close in on a new partnership with Etihad Airways, sources have told Football Insider.
Man City have been in a battle with the Premier League over the past year regarding the associated party transaction (APT) rules.
Newcastle have seen their progress blocked by the APT rules since Saudi Arabia’s Public Investment Fund (PIF) took over the club in October 2021.
However, sources say Eddie Howe’s side are now in a better position to agree significant deals linked to their owners, with Man City’s extension with Etihad Airways expected to set a new benchmark.
Why did Man City challenge the APT rules?
Man City initially took legal action against the Premier League after seeing some of their commercial deals rejected or adjusted.
The deals in question with Etihad Airways and First Abu Dhabi Bank were blocked in 2023 for not being fair-market value under the APT rules.
Man City successfully challenged the APT rules following a two-week private arbitration hearing in the summer of 2024.
Newcastle showed support for Man City in their legal action, with the tribunal ruling the regulations in place were unlawful last October.
Following amendments by the Premier League, Man City challenged the APT rules again in February this year.
However, Pep Guardiola’s side confirmed on Monday they have now accepted the APT rules are valid and binding, with both parties agreeing to terminate their legal proceedings.
Newcastle missed out on big-money sponsor deals
Newcastle are now expected to have the opportunity to agree lucrative deals linked to their Saudi owners following the latest update.
The Tyneside club previously struck sponsorship deals with Sela and Noon worth a combined £32.5million, but it is believed they could have potentially banked a higher fee with a relaxation of the APT rules.
Newcastle smashed their club-record revenue in 2023-24 after their overall turnover surged from £250m to £320m, while their commercial income improved from £47m to £86m across the same period.
That still puts them well behind Man City, whose turnover increased by £2.2m to £715m in 2023-24, with £344.7m of commercial revenue boosting that figure.
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