Man City APT success ‘could open up sizeable opportunities’ for Newcastle – finance expert

Newcastle United could benefit if Manchester City win their associated party transactions (APT) case against the Premier League, according to a finance expert.

The arbitration hearing in Man City’s legal dispute with the top flight began in June and an outcome should be announced to the public in the coming days.

It is believed that the Premier League champions have challenged the validity of the rules under UK competition law.

The rules City are challenging are designed to ensure any commercial deal or player transfer between a club and entities with links to that club’s ownership are conducted at fair market value, so that club revenues are not artificially inflated.

If an arbitration panel declares the APT rules invalid, then clubs would effectively be free to do any commercial deals they wished without any independent judgement being made on whether those deals were for fair market value.

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That could then in turn help clubs boost their declared revenue and give them greater leeway on transfer and wages spending under financial sustainability rules. There are fears it could lead to the clubs whose owners have the deepest pockets – City and Newcastle – effectively being in a league of their own in terms of spending.

It is unclear what, if any, bearing this claim could have on the separate matter of the 115 charges brought by the Premier League against City over alleged breaches of the league’s financial rules. City strenuously deny any wrongdoing.

Newcastle will be anxiously waiting to find out the result of City’s APT case.

Newcastle await Man City APT verdict as world domination beckons

Football Insider finance expert Stefan Borson has explained how the Magpies could benefit from a Man City victory, noting that they ‘could look to strike Saudi deals for their training ground and other assets they own’.

The report states:

After a two-week private arbitration hearing took place in June, a decision is now due imminently.

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 endured a difficult summer, with the futures of several key players uncertain in June as they desperately looked to raise funds through player sales to avoid breaching the Premier League’s profit and sustainability rules.

Instead of selling Anthony Gordon to Liverpool, for example, Eddie Howe’s side offloaded Yankuba Minteh and Elliot Anderson to Brighton and Nottingham Forest for a combined £65million.

The financial regulations in place hindered the club’s ability to bring in new faces, with fans very disappointed by the lack of incomings.

And after missing out on European football, Borson says he expects Newcastle to face another tough year financially.

He told Football Insider’s The Inside Track podcast: “If City were successful in their challenge of the associated party transaction rules, then that could open up some more possibilities for some sizeable Saudi deals for things like the training ground and maybe some other properties that Newcastle have.

“But in the absence of that, Newcastle have a tough year this season from a financial perspective.

“They have lost £40million of European revenue compared to last season.

“Just getting to the same level of revenue is going to be a challenge.”

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