A regulation change that affects Man United, Man City, Everton, and Newcastle United puts the Premier League in jeopardy.
After clubs voted on Friday to tighten restrictions on linked party transactions, the Premier League has come under increased scrutiny.
First discussed in November, English premier league clubs wanted to temporarily prohibit loans from third parties. They also wanted to stop commercial partnerships with related parties unless there was evidence of several bids of the same amount. The requisite number of votes were cast for neither motion.
The following teams are said to have voted against the temporary ban on January loans: Wolverhampton Wanderers, Sheffield United, Newcastle United, Manchester City, Chelsea, Everton, Nottingham Forest, and Burnley. Nonetheless, it is believed that two changed directions at the most recent Premier League shareholders meeting last week, enabling the most recent motion to pass and alter what is and isn’t allowed.
The Premier League stated: “Clubs agreed to a series of amendments to further enhance the efficiency and accuracy of the system following a full review of the existing associated party transactions rules and fair market value assessment protocols.”
The Telegraph claims that Man City is reportedly threatening to use arbitration to stop the changes from happening in the Premier League.According to Sky News, the league has reportedly been informed that the modifications violate English competition law.
The Public Investment Fund of Saudi Arabia owns 80% of Newcastle, and this summer, the PIF-affiliated events business Sela and Newcastle signed to a front-of-shirt sponsorship agreement worth £25 million annually, in accordance with the Premier League’s fair market value regulations. The four Saudi Pro League teams that PIF owns are Al Nassr, Al Ittihad, Al Hilal, and Al Ahli. However, PIF isn’t always seen as a “multi-club model.”
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