Stefan Borson drops strong verdict on Premier League blocking Newcastle progress
Newcastle United’s progress is currently being blocked by the Premier League’s associated party transaction (APT) rules.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider the north-east giants will be “stuck” until those rules are changed.
Man City have taken legal action against the Premier League regarding the APT rules currently in place, with the club claiming the regulations are “unlawful”.
After a two-week private arbitration hearing took place in June, a decision is due imminently.
Football Insider revealed on 6 June Newcastle were prepared to submit documents in support of Man City before the hearing took place.
A relaxation of the rules would mean top-flight sides could agree sponsorship deals as high as they wanted with no challenge, increasing the amount they could spend under the profit and sustainability rules (PSR).
Newcastle have bridged some of revenue gap with Saudi deals
Although Borson revealed Newcastle have bridged some of the revenue gap required to get into the Champions League, he believes the APT rules pose challenges for the club.
He told Football Insider: “They have taken the decision that they want to comply with PSR and not take a points deduction.
“There would have been another aggressive route that would have been to spend and breach, and then dealt with the consequences. But they are clearly not doing that.
“Until those rules change, they are stuck. They have always been stuck.
“From the first day that Newcastle were taken over, they always had the challenge of how to be able to pay the wage bill that seems to be required to get into the Champions League without having the revenue to go with it.
“They have filled some of that revenue gap with the deals they have done with some of the Saudi companies on the sleeve and on the front of the shirt.
“But the associated party transaction rules that have been brought in and were bolstered in February this year that City are now challenging have clearly stymied Newcastle.
“We will just have to see how they deal with that.”
In other news, Newcastle set to open Anthony Gordon talks.
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