The EPL clubs vote to curb spending power for Newcastle United

    The EPL clubs will have to submit their details regarding the commercial deals for approval by their rivals, which will be under new rules agreed among 20 shareholders of top flights’. The rules in this deal will consist of direct response of a massive amount of 205 million pounds, Saudi-Arabian led a takeover of the Pl club Newcastle United, which will also curb the potential spending power of clubs including the Magpies that are partly owned or owned by a particular state.

    The Premier League started drawing up these regulations two months back in October after the takeover of Newcastle United that is 80 per cent owned by Saudi’s state PIF (Public Investment Fund). The focus is set on preventing owners from inflating the financial position of the club by gaining sponsors from the associated parties. These have prepared themselves to pay over the odds with the significant aim to elevate the cash available which will be used to spend on new players under the Financial Fair Play rules.

    The concern of the PL clubs on the Newcastle United deal

    Premier League clubs had great concern if the PIF could seek favourable deals for the stadium, shirt sponsorship or training grounds from the Saudi businesses. The clubs feared that this could have strengthened the position of the Magpies in the transfer market, which would put them at a disadvantage.

    At present, the EPL clubs have voted on these transactions of the associated party. This will ensure that they will get settled at a fair market value. Sources state that the vote was carried out by a majority of 14 out of 20 PL clubs, the threshold for decision. Before, Pl clubs Newcastle voted on opposing the controls on the commercial deals. Here Manchester City abstained.

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