The changes to the Premier League’s Profit and Sustainability Rules could be ratified on Friday, and that provides an interesting opportunity for Newcastle.
It’s understood that the changes proposed after Man City’s successful challenge will be voted upon by the rest of the English top-flight’s member clubs.
PIF and Newcastle could benefit from PSR changes
Newcastle had already been told that they might have to sell more players to keep on the right side of FFP, and in order to help combat any changes that could take place and be to their detriment, the club made a studious appointment.
In any event, there is an interesting aspect to any discussion surrounding the rules should everything be ratified as expected.
“The reason why that (rule change) is interesting is that what could be of value to a potential sponsor might be greater than what it would be worth to other sponsors,” football finance expert, Kieran Maguire, said on the Price of Football podcast.
“Let’s take Manchester City and Abu Dhabi-based sponsors and Newcastle United and Saudi-based sponsors.
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“It could be worth more to a Saudi-based sponsor to pay what might be seen to be a premium fee because they feel they would get additional benefit within Saudi Arabia itself in terms of the local market, in terms of attracting buyers to their products, than on a more global basis.”
Despite the evident wealth of Newcastle’s owners, the Saudi Public Investment Fund (PIF), which their own website states is $925bn, they’ve not been able to lavish endless investment into the Premier League club because of the existence of the PSR rules which were brought in directly after the company’s takeover of the Magpies.
Friday is therefore a big day for the club and other top-flight teams, and it could immediately change the landscape in English football.