Newcastle United could be set for a significant boost after Manchester City won their ongoing legal battle against the Premier League’s ATP regulations, according to financial expert Adam Williams.
Manchester City are challenging the legality of the Premier League’s Associated Party Transaction (APT) rules, which were designed to prevent clubs from inflating commercial deals with entities linked to the owners to avoid financial caps.
City’s legal battle, which began after the club was charged with 115 FFP breaches, has resulted in rulings that suggest parts of the APT rules could be overhauled.
If Manchester City is successful in their legal case, Newcastle could experience greater financial flexibility. Since its acquisition by the Saudi Public Investment Fund (PIF) in 2021, Newcastle’s strategy has largely focused on increasing commercial income.
However, APT rules have restricted the club’s ability to take full advantage of the commercial opportunities linked to its ownership.
Williams highlighted that Newcastle could gain the freedom to negotiate more lucrative deals with owner-related entities, which would improve their financial flexibility under the Premier League’s Profitability and Sustainability (PSR) framework.
He suggested that this financial freedom could be crucial for Newcastle to invest more in player transfers and speed up infrastructure improvements, such as renovations to St. James’ Park or even the development of a new stadium.
Williams noted that Newcastle’s main focus in navigating the PSR framework has been on increasing commercial income. While player trading and stadium development are part of their long-term strategy, commercial deals remain the club’s key to greater financial flexibility.
talking with Geordie Boot BoysWilliams stated:
“Newcastle’s strategy to circumvent the PSR has so far focused almost entirely on commercial income.
“Yes, there are plans to improve St James’ Park or maybe move to a new stadium entirely, but we are talking long-term there. Trading players will also need to feature more prominently in their PSR strategy, with the last-minute sales of Minteh and Anderson ahead of the June 30 PSR cutoff the only major exits under PIF.”
“Commercial income is less hard-wired than those two revenue streams, which is why upwardly mobile clubs like Newcastle see it as the key to unlocking more room for movement under PSR.
“They have been prevented from doing so to some extent by the APT rules that were introduced following the acquisition of PIF in October 2021. This new ruling seems to show that elements of ‘these rules’.
“Currently, clubs must demonstrate that commercial agreements entered into with related entities have been agreed at fair market value.”
Newcastle’s potential gains from Manchester City’s win
Since the acquisition of PIF, Newcastle has undergone a remarkable transformation. With significant financial backing, the club have made high-profile signings such as Bruno Guimaraes, Alexander Isak and Kieran Trippier, while dramatically improving the depth and quality of their squad.
Under manager Eddie Howe, the Magpies have gone from relegation contenders to Premier League top-table contenders. However, APT rules have limited the extent to which they can invest in their workforce, despite their substantial financial resources.
If these rules are relaxed following Manchester City’s legal case, they would be better placed to compete financially with the Premier League’s elite clubs, allowing them to further strengthen their squads and improve their competitive position.
A victory for Manchester City in this legal battle could open the door for the club to take full advantage of the financial backing of the Saudi PIF.
With greater financial freedom, the club would have more opportunities to pursue its ambitions, both in terms of player signings and infrastructure improvements.
