Premier League sponsorship rules introduced after Newcastle United‘s takeover have reportedly been declared void.
Associated Party Transactions (APT) regulations came into force in December 2021, months after a consortium led by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, completed its takeover of Newcastle. They followed Premier League clubs voting through legislation at an emergency meeting to temporarily ban commercial arrangements involving pre-existing business relationships.
Newcastle voted against the change, while Manchester City abstained. All but Newcastle – who abstained – then voted through APT rules. However, Man City launched a legal challenge in June after the Premier League blocked proposed deals with Etihad Airways and First Abu Dhabi Bank because of these rules.
The Mail and The Times are now reporting that challenge has proven successful after an independent tribunal deemed them “void and unenforceable”. Premier League chief executive Richard Masters is said to have sent a letter to the league’s clubs regarding the ruling on Friday evening.
However, the legal challenge was only against a previous iteration of the rules. Amendments were since made this time last year and again in November.
Man City and Newcastle voted against them on the latter occasion, but Aston Villa and Nottingham Forest joined this time. The former have also challenged November’s amended rules, which the same arbitration panel will hear separately.
Between the first change in February and the latest update came City’s first APT legal challenge and an initial decision from the tribunal that three elements of the rules were unlawful. After which, Man City claimed success, but the Premier League claimed the tribunal’s findings “endorsed the overall objectives, framework and decision-making of the APT system” and “upheld the need for the APT system as a whole”.
The Premier League is expected to release a statement regarding the ruling later on Friday evening.
View news Source: https://www.chroniclelive.co.uk/sport/football/football-news/newcastle-united-receive-massive-boost-31010622
