Revealed: Four PIF-linked Newcastle United deals scrutinised by Premier League
Over half of the sponsorship deals signed by Newcastle United since the Saudi Public Investment Fund’s takeover last October have involved an associated party, Football Insider has learned.
The commercial arrangements of Premier League clubs are now subject to assessment by the Fair Market Value committee as part of a series of curbs on artificially-inflated deals designed to circumvent Financial Fair Play.
The top flight introduced the new regulations just weeks after PIF’s £305million takeover, which has been described as a front for a global sportswashing campaign.
Analysis commissioned by Football Insider has found that four of the seven deals the Magpies have signed since the historic buyout have been with companies the Premier League likely classify as associated parties.
Three of those deals – with Noon.com, VOV and stc – are with businesses in whom PIF either have a stake or an indirect but substantial corporate link.
The agreement with SAUDIA, who are sponsoring the Tynesiders’ current tour of their owners’ homeland, is also believed to be classified as a related-party transaction because of the airline’s links to the Saudi government.
The Premier League’s definition of an ‘associated party’ takes into account “the substance of the relationship and not merely the legal form.”
Deals with Monster Energy, Dr Cinik and Sportsbreaks meanwhile do not fall under this umbrella.
All seven deals passed the Premier League’s Fair Market Value test, but the top flight has previously refused to provide a comment when asked by Football Insider whether it had yet rejected any commercial deal on this basis.
An industry source told Football Insider last Thursday (1 December) that Newcastle will hold potentially-decisive talks with SAUDIA over a potential front-of-shirt sponsorship deal during their trip to the Middle East.
This site revealed the previous Tuesday (22 November) that the Magpies had plans to roll out an Arabic-language social media handle with a view to capitalising on growing interest in the region.
They announced the launch of @NUFC_AR, a Twitter account for the club’s followers in the Arab world, last Sunday (4 December).
In other news, pundit issues “scary” Alexander Isak claim amid Newcastle United injury update.