When the Saudi Public Investment Fund (PIF) took over Newcastle United, it’s not too far fetched to imagine that they were going to bring their evident wealth to bear at St. James’ Park.
It’s scarcely believable that PIF are worth $925bn/£779bn per their company website, placing them well ahead of the next richest club owners in the world, Man City’s Sheikh Mansour, who The Scotsman note has an individual wealth of $30bn/£25bn – very small change in comparison.
And yet it’s the latter who could well be helping the former to be able to cash in during the course of this season.
The Toon Army were cock-a-hoop when Mike Ashley was finally bought out and it’s true that PIF have bought some outstanding players since they took over the club.
In many respects, the Newcastle we see today is the total opposite of the one sold to PIF by Ashley.
Although the Premier League introduced their Profit and Sustainability Rules (PSR) back in 2013 (So Legal), it’s only really been in the recent past that clubs appear hamstrung by their ability to stay within those FFP guidelines.
Certainly, Eddie Howe being able to go out and buy who he likes has been far from the reality.
That could all be about to change, however, if Man City win their case against the Premier League regarding Associated Party Transactions (APT).
According to former Man City financial advisor, Stefan Borson, should the Cityzens emerge triumphant – with a resolution expected shortly – Newcastle could have more scope to ensure big sponsorship deals linked to PIF get passed, meaning their threshold for FFP would be considerably widened.
“If City were successful in their challenge of the associated party transaction rules, then that could open up some more possibilities for some sizeable Saudi deals for things like the training ground and maybe some other properties that Newcastle have,” Borson said to Football Insider.
“But in the absence of that, Newcastle have a tough year this season from a financial perspective.
“They have lost £40million of European revenue compared to last season. Just getting to the same level of revenue is going to be a challenge.”
If the decision does go in City’s favour, it could change the Premier League landscape significantly.
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