Newcastle United Bracing for MASSIVE Blow as Latest APT Decision Puts Star Player’s Future in Jeopardy

On Friday, the Premier League was rocked by an independent tribunal after it deemed the league’s Associated Party Transaction (APT) unlawful and declared them null and void.

The rules were put in place after Newcastle United’s takeover in October 2021 which saw the Saudi Arabian Public Investment Fund (PIF) become the majority stakeholder in the club. The decision was met with discontent from Newcastle bosses including former owner Amanda Staveley.

Following the decision, Staveley slammed Premier League clubs claiming there was a “fear of an unfair advantage.”

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Newcastle’s progress has also been hampered by the Premier League’s Profit and Sustainability Rules (PSR) which has forced the club to sell key assets like Elliot Anderson without the ability to sign replacements.

It was the same case in the January transfer window when Miguel Almiron left alongside defender Lloyd Kelly, who had only joined the club a few months prior.

Following a blow to the Premier League’s reputation, Newcastle have been told what they must now do to kickstart further commercial growth.

Newcastle could sue the Premier League for compensation

Following the ruling, Newcastle fans blasted Richard Masters, CEO of the Premier League and called for his resignation.

PIF adverts were spotted at St James’ Park during Newcastle’s win against Wolves in January – those close to the PIF claimed that it was a sign of their commitment to the club.

A Newcastle fan asked football finance expert Kieran Maguire was asked what the decision means for Newcastle directly.

He said: “(The APT ruling) only covers the period 2021-24, although Manchester City have a separate claim about the rules introduced towards end of last year.

“However, in the case of NUFC (and other clubs), if they can evidence that they had sponsorship deals in the period 2021-24 that were rejected by the Premier League then potentially they could sue for compensation as could claim it restricted their ability to invest in playing talent as a consequence of having commercial income restricted. Doesn’t mean they will though.”

Man City took the Premier League to court over the rules in 2023 after they had two deals blocked by the Premier League. If Newcastle can prove that they did the same to them, they could be due a hefty sum of money that would vastly improve their commercial income.

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Can Newcastle spend freely after Premier League APT ruling?

The APT ruling is undoubtedly a huge win for Newcastle. However, their commercial income could still be hindered depending on where they finish in the league this season.

If Eddie Howe takes the Magpies back to European football, Newcastle must adhere to UEFA’s sponsorship rules which prevent them from receiving lucrative sponsorships which would turn the Magpies into real footballing powerhouses.

It was recently announced that PSR will remain in place for at least one more season which is a boost for Newcastle’s summer transfer business.

Sporting director Paul Mitchell will benefit from Newcastle’s £73m PSR boost when their losses from the 2021/22 season where they signed the likes of Dan Burn and Chris Wood will drop off the three-year cycle.

In addition to the recouped losses, Alexander Isak’s proposed Newcastle deal would give Mitchell even more legroom to spend as the Swede’s club record transfer deal would be stretched across the length of his contract, meaning Newcastle would have to pay Real Sociedad less each year.