English clubs are scared of Newcastle. The reason? Temporarily frozen sponsorship deals

There are fears among Premier League clubs that Newcastle’s new owners could sign rich contracts with Saudi companies. It’s not just for this reason that a temporary freeze on sponsorship deals is underway!

Premier League clubs voted on Monday that there will be a temporary freeze on new sponsorship deals. These are to be mainly new contracts with businesses that have links to the club’s owners.

The decision was voted on at the meeting after concerns were raised that Newcastle United’s new owners may begin to enter into lucrative contracts with Saudi state-owned companies.

It is Newcastle that has become not only the richest side in the English top flight, but also the best-financed football club in the world.

Representatives from all 20 Premier League clubs have gathered. The vote was 18 in favour of the freeze, Newcastle United representatives were against, Manchester City representatives abstained.

Financial fair play rules in the Premier League allow clubs to make a maximum loss of £105m over a three-year period. However, the Leeds boss said there should be a tightening up of the requirement for financial fair play rules.

Clubs fear that any artificially inflated commercial arrangements would increase a club’s income and allow it to circumvent the rules, followed by more spending than is allowed.

It was voted that the freeze would last for a month. And during that month there will also be talk of a permanent rule change.

Source: Sky Sports