Newcastle United can strike ‘seismic’ £90m deal after Premier League APT ruling
Nothing can stop Newcastle United striking a £90million per season kit deal with Adidas.
That is according to football financial expert Kieran Maguire, who believes last week’s Associated Party Transaction ruling can still benefit the Magpies. Clubs voted overwhelmingly to side with the Premier League and introduce measures to tighten commercial deals.
Only Newcastle, Aston Villa and Nottingham Forest backed Manchester City against the top flight after the proposals were branded “unlawful” by an arbitration panel in October. Deals involving “associated parties”, for example, the Magpies and their owner, the Public Investment Fund, must now prove they are of fair market value.
Toon fans had hoped clubs would make a stand against the Premier League as FFP/PSR regulations continue to hamstring PIF’s bottomless pit. However, the status quo remains and Newcastle must continue to squeeze every ounce of value from the current rulebook.
But monetary guru Maguire - who hit out at the APT decision on Friday - saw a silver lining for Newcastle. Looking at Manchester United’s seismic £90million per year deal with Adidas, Maguire has questioned whether any pushback could be made if the Magpies agree to the same fee.
Newcastle’s recent agreement with the German sports giant is worth around £40million per year. He told TBR Football: “I think the additional information now available to clubs will allow them to see the upper limit of the upper limit. It will let them see just how far they can negotiate before the Premier League says this is not acceptable.
“If Man United have a £90million shirt deal, presumably it would be acceptable for Newcastle United and Man City to also have a £90million shirt deal given that the Premier League specifically states that the rules are there to ensure competitive balance. I don’t know how they can keep a straight face when they say that.”