Newcastle United may pursue sponsorship agreements in the Middle East so long as they are accepted as being of “fair value.”
According to financial expert Kieran Maguire, who talked confidentially about how Newcastle might be affected by new Premier League sponsorship regulations, that is the case.
Top-tier teams decided to implement new fines at the most recent Premier League meeting for any clubs who enter into inflated sponsorship agreements with connected parties.
Since their ownership by Saudi Arabia, Newcastle United has made a number of agreements with Middle Eastern businesses, including a £25 million agreement per season with Sela.
If clubs are charged with striking inflated deals there will be no fixed tariff of sanctions, with all penalties made available to an independent commission.
Despite new regulations, Newcastle can carry on with its Saudi Arabian deals.
Maguire thinks Newcastle’s off-field strategy won’t be halted by the new regulations because all of their deals to date have been within fair value.
“When it comes to their sponsorship deals, Newcastle has followed the rules up until now,” Maguire said to Sean Fisher of Football Insider.
I understand that a large number of individuals are from Saudi Arabia or the Middle East, therefore they probably have some sort of connection to the club owners, either direct or indirect.
However, assessing these kinds of transactions is crucial.
“No one is claiming that the Noon and Sela deals are excessive because they are both at the upper end of the anticipated range, so Newcastle can proceed as long as it is judged to be fair value.”
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