Newcastle Free To Make Saudi Arabia Sponsorships
The EPL have decided to lift the temporary ban that prevented Newcastle from signing sponsorship from their owners' country.
Time for a game of Newcastle sponsorship roulette. My chips are on Saudia (airline) in shirt/naming rights double with strong support from Saudi Aramco and Saudi Telecom (STC), plus bank, say SABB (HSBC). https://t.co/ql6KwhDuwk
— Matthew Glendinning (@mattglen) December 15, 2021
Newcastle Free To Complete Saudi Arabia Sponsor Deals
When it was announced that Public Investment Fund (PIF) from Saudi Arabia became the new owners of Newcastle United, intense backlash was felt.
This led to an emergency meeting by the EPL to decide on a temporary ban on 'related party' sponsorship while they were figuring out new sponsorship rules. This meant that Newcastle could not sign a deal with any company related to PIF during such ban.
With the ban lifted, Newcastle may resume to complete these type of deals, without any limit to how many they can sign. However, they are subjected to review by the board of EPL to decide whether the deals are 'fair market value'.
The EPL has the authority to assess whether each deal has been negotiated at a fair value or artificially inflated. The will compare the value of the deal against other similar sponsorships before it and consult independent assessors.
Do you think the new regulation will stop inflated sponsorship from clubs? Comment below.
