Many clubs in the Premier League are concerned that the Saudi owners of Newcastle could strike deals in the oil-rich kingdom that could give them an advantage. And the clubs want to take precautionary measures that will either prevent this or ensure that the fair market value is paid.
And the newspaper stated that the decision to temporarily suspend commercial sponsorship agreements, which include prior business relationships, came within an “emergency” meeting that included all the twenty clubs of the English Premier League.
The decision was passed by 18 votes and only Newcastle opposed it, and considered the amendment “illegal” and “limiting competition,” and warned that the decision would affect other clubs in the future.
Manchester City abstained from voting, and the newspaper reported that legal advice was given to the club to do so on the basis of the “illegal” procedure, “The club owned by Abu Dhabi United Group concluded deals known as related party transactions, and for example, Etihad Airways, the government-owned carrier Abu Dhabi, under his sponsorship,” according to “The Guardian”.
The Premier League had looked into cases of any breaches by Manchester City of competitive justice legislation, while City denied any wrongdoing.
The new amendment will become effective next month and will apply to all 20 clubs participating in the English Premier League.
The Premier League has been the focus of a long-running investigation into whether Manchester City have breached Financial Fair Play regulations. City denied any wrongdoing.
And this month, the League announced its approval of the long-term acquisition deal, worth 300 million pounds ($409 million), after saying that it was reassured by the Public Investment Fund’s “legally binding assurances that the Kingdom of Saudi Arabia will not control Newcastle.” The English club became the first major sporting investment for the Kingdom.
The fund is headed by Saudi Crown Prince Mohammed bin Salman, who bought an 8 percent stake in the club, while the Board of Directors of the Public Investment Fund includes six Saudi ministers and an advisor to the royal court.
The Guardian stated that the 19 clubs demanded, after hearing the news of the acquisition, to hold a special meeting with the league, last Tuesday, to understand the reasons for accepting the offer, so that the clubs met separately after “to discuss the financial repercussions of competing with the Saudis,” and this meeting is what contributed to the Draft the decision taken by the clubs, Monday.