Premier League & FA approval could benefit Newcastle United after £30m PIF-linked deal

Officials at all 20 top-flight clubs met in London last month to vote on changes to APTs. It came after an independent panel found aspects of the league’s rules to be unlawful following a lawsuit instigated by Manchester City.

Despite both Man City and Aston Villa publicly opposing the changes, the Premier League secured the minimum 14 votes needed to pass the amendments. Nottingham Forest and Newcastle United were understood to have joined the aforementioned clubs in voting against the changes.

However, the suggestions are the changes could actually benefit Newcastle, albeit not to the levels they want. Previously, it had been the club’s responsibility to prove an APT deal was fair market value (FMV) - Newcastle did this when they signed their front-of-shirt sponsor deal with Sela, worth a reported £25million-per-season, in 2023.

Now, the Premier League would have to prove it isn’t FMV to stop an APT deal. There are some big commercial deals such as the training ground and training kit sponsor that United are still to secure.

Borson wrote on X: “The new post APT Tribunal PL Rules are out following FA Board approval.

“Probably the most significant deletion we didn't specifically know about is in the Fair Market Value section. Presumably, as part of the moving of the burden back to the Board to show a deal is evidently not FMV, Clubs no longer need to detail their sales process or the details of the underbidders.

“Everything else is broadly as expected except a) a typo (question x2) in one new section below b) the flexibility on shareholder loans for the Board not to engage an independent expert assessor.

“This guidance is relevant to Everton's shareholder loan which is in their accounts as equity: "In respect of Rule A.1.255(a), for the purposes of assessing whether an instrument is an ‘equity investment or capital contribution’, the Board shall have regard to relevant sources of information and evidence, including: (i) the nature of the instrument (including its impact, if any, on Club solvency), (ii) its treatment under applicable international accounting standards, and (iii) any other relevant information presented by the relevant Club."

Borson added: “Been asked for a dumbed down version. In simple terms the PL rules on APTs go back to those from before February 2024 and various extra rules are included so that shareholder loans (any loan from a direct or indirect 5%+ shareholder) now has to carry a fair market interest rate and cost.”

APT rules were introduced in the wake of Newcastle’s £305million takeover by the Public Investment Fund of Saudi Arabia three years ago, therefore restricting the club’s ability to land lucrative deals with companies linked to PIF.

Former co-owner Amanda Staveley, who brokered the PIF takeover, admitted the rule changes p----d her off.

“I was shocked that we could buy a club, pay a full price and then rules just change,” Staveley said previously. “I think that's what p----d me off, because we had so little revenue anyway, that if you're just going to ban everything... We were 20th, we had nothing. I was angry then, yes.”