‘Newcastle accounts reveal Premier League ATP compensation blow’
Newcastle’s hopes of claiming compensation from the Premier League after their APT rules were found to be unlawful have taken a blow, according to Stefan Borson.
The Premier League introduced rules on associated party transactions (APT) in 2021, in order to regulate sponsorship deals involving club-linked entities.
However, a tribunal has ruled that APT rules used between 2021 and 2024 were void and unenforceable.
The Premier League will continue to use APT rules going forward, under a new set of guidelines, despite the legal ruling, and Man City are expected to launch a new legal challenge against them.
Should City be successful in voiding the new ruleset, Borson suggested Premier League clubs could be “aggressive”, and take advantage of the situation to force through big-money sponsorship deals in the absence of fair market valuation.
Newcastle were waiting for an outcome on what the APT ruling meant for their club in February, with a lack of clarity as to whether the Magpies would be able to claim compensation.
Newcastle APT claim ‘challenging’ says Stefan Borson
The deals with shirt-sponsors Sela and Noon were adjusted after an APT ruling, and the club could have banked a much higher fee without the now-void APT rules in place, Newcastle were hoping to receive compensation from the Premier League as a result.
Finance expert, Borson, reacted on X after the clubs accounts appeared to show that Newcastle admit that both Sela and Noon, two separate shirt sponsors, are related parties.
The former City financial adviser explained why this matters, saying: “This means that even if no APT rules ever existed they would still be subject to FMV [fair market value] assessment.
“[This] Appears to make a claim related to APT more challenging as no loss due to APT as such.”
Newcastle set for busy summer transfer window after APT ruling
Having avoided doing major business in January, to avoid running afoul of the Premier League’s profit and sustainability rules (PSR), the Magpies are expected to be active in the summer window.
With the APT ruling giving more freedom for sponsorship deals, Newcastle have lined up “multiple” Saudi sponsors.
Ex-Everton CEO, Keith Wyness, revealed to Football Insider exclusively, Newcastle could land a £100million windfall from commercial deals.
Fans are keen to see the Magpies sign Bryan Mbeumo, and the club have also been linked with a move for Burnley goalkeeper James Trafford.