‘If they wanted to put £200m in’: Journalist says Newcastle know a way around new sponsor rules

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Speaking on the Transfer Window Podcast, Duncan Castles has shared what he knows about the new Premier League sponsorship rules and Newcastle United.

The Premier League have done a U-turn on their decision to bring in a blanket ban on sponsorship from related parties, but now, they’re happy for such deals to be struck at a ‘fair market value’.

That means that while PIF and Saudi Arabia can’t pay £500m-a-season to sponsor the Magpies’ shirt, they will be allowed to inject a decent sum of funds via commercial dealings.

This sounds limiting, but Castles says that the Tyneside club are aware of a way around these rules.

What’s been said about Newcastle?

Castles shared what he knows about these new regulations.

“Although sponsorship transactions will be limited to a fair market value. I’m told that there is no limit on the number of commercial deals you can do. So, for example, if they wanted to put £200m in to Newcastle United’s revenue, in principle, they could split that across 10s of commercial deals coming out of Saudi Arabia, in a similar fashion, Manchester United have over 100 partners right now of varying degrees,” Castles said.

“The total level of nation-state funding via commercial deals is not necessarily controlled by these new laws, but each individual sponsorship will be controlled. Newcastle are aware of that and Manchester City will also be aware of that.”

Impossible to regulate

What’s the point in trying to regulate when there are such obvious loopholes in your rules?

We live in an era where football clubs have things such as official pillow partners and an official noodle supplier, so it’s so easy for these rules to be bent by owners if they should so wish.

Of course, setting all of these deals up and arguing that they’re fair value will be a bit of a pain for the Magpies’ new owners, but when there’s a will, there’s a way.

United could end up getting a big cash injection in the not so distant future, but if they’re to do it view these commercial deals, it may be quite a long-winded process.