Newcastle United could be poised for a significant boost after Manchester City won their ongoing legal battle against the Premier League’s ATP regulations, according to finance expert Adam Williams.
Manchester City are contesting the legality of the Premier League’s Associated Party Transaction (APT) rules, which were designed to prevent clubs from inflating commercial deals with owner-related entities to bypass financial limits.
City’s legal battle, initiated after the club was charged with 115 FFP breaches, has resulted in rulings that suggest parts of the APT rules could be revised.
If Manchester City succeeds in its legal case, Newcastle could experience greater financial flexibility. Since their takeover by the Saudi Public Investment Fund (PIF) in 2021, Newcastle’s strategy has heavily focused on increasing commercial revenue.
However, the APT rules have restricted the club’s ability to fully leverage commercial opportunities tied to their ownership.
Williams highlighted that Newcastle could gain the freedom to negotiate more lucrative deals with owner-related entities, which would enhance 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 accelerate infrastructure improvements, such as renovations at St. James’ Park or even the development of a new stadium.
Williams noted that Newcastle’s primary approach to navigating the PSR framework has centred around boosting commercial income. Although player trading and stadium development are part of their long-term strategy, commercial deals remain the club’s key to unlocking more financial flexibility.
Speaking to Geordie Boot Boys, Williams stated:
“Newcastle’s strategy to circumvent PSR so far has focused almost entirely on commercial income.
“Yes, there are plans to improve St James’ Park or perhaps move to a new stadium entirely, but we are talking long-term there. Player trading will also have to feature more prominently in their PSR strategy, with the last-minute sales of Minteh and Anderson before the PSR cut-off on 30th June the only major departures under PIF.”
“Commercial income has less of a concrete sealing that those two income streams, which is why upwardly mobile clubs like Newcastle see it as the key to unlocking more wriggle room under PSR.
“They have been prevented from doing that to an extent by the APT rules which were introduced in the wake of PIF’s takeover in October 2021. This new ruling appears to show that elements of those rules need to be rewritten.”
Currently, clubs have to demonstrate that commercial deals struck with related entities have been agreed at fair market value. Newcastle midfielder Bruno Guimaraes with manager Eddie Howe. (Photo by Catherine Ivill/Getty Images)
Since the PIF takeover, Newcastle have undergone a remarkable transformation. With significant financial backing, the club has made high-profile signings such as Bruno Guimaraes, Alexander Isak, and Kieran Trippier, while also dramatically improving their squad’s depth and quality.
Under manager Eddie Howe, the Magpies have gone from relegation candidates to top-table contenders in the Premier League. However, the APT rules have limited the extent to which they can invest in their squad, despite their substantial financial resources.
If these rules are relaxed following Manchester City’s legal case, they would be better positioned to compete financially with the Premier League’s elite clubs, enabling them to further bolster their squad and enhance their competitive standing.
A victory for Manchester City in this legal battle could open the door for the club to fully capitalise on its financial backing from 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.
