• Loading stock data...
Tuesday, April 16, 2024
  • -
    days
  • -
    hours
  • -
    minutes
  • -
    seconds

Premier League Temporarily Bans Owner-Affiliated Sponsorships

  • The Premier League temporarily banned owner-affiliated team sponsorships after Saudi Arabia's sovereign wealth fund bought Newcastle.
  • The vote passed 18-1 in an emergency meeting.
Newcastle United/Design: Alex Brooks

The Premier League voted to temporarily ban teams from signing sponsorship deals with entities associated with their owners, the latest move in the fallout from Newcastle’s change of ownership.

The ban lasts for one month, providing a period in which the league will negotiate permanent restrictions on owner-connected sponsors.

The vote passed 18-1 in an emergency meeting on Monday, with Newcastle voting against and Manchester City abstaining on advice from their legal counsel that the vote was illegal.

While league officials were already considering such a move, the ban was spurred by Saudi Arabia’s sovereign wealth fund’s purchase of Newcastle for $409 million earlier this month.

  • The country’s Public Investment Fund manages an estimated $500 billion in assets.
  • Its diverse range of investments includes a $3.61 billion stake in Activision Blizzard, $2.04 billion in Electronic Arts, $1.1 billion in Live Nation Entertainment, and $998.4 million in Take-Two Interactive as of June 30.
  • The PIF owns 80% of Newcastle, with the remainder split evenly between PCP Capital Partners and billionaire brothers Simon and David Reuben.

Premier League owners said they were concerned that Newcastle could sign sponsorship deals at inflated prices with Saudi state-owned companies to allow for more spending on players. 

The league’s fairness-of-play rules cap team losses at $144.9 million over a rolling three-year period. Revenue from sponsorships and other sources negate losses, allowing teams to devote more funds to player salaries and transfer fees.

Existing deals made by Manchester City, Leicester City, and Everton will not be affected by the ban.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Wrexham, Leverkusen Write Hollywood Stories

The guaranteed payoff for Wrexham is modest but still significant.

Former Tottenham Owner Avoids Jail Time in ‘Brazen’ Insider Trading Case

Joe Lewis gets three years’ probation and a $5 million fine.

WTA Finals Latest Sporting Event To Take Saudi Millions

Players can still wear normal attire, WTA says.

A’s Reach Deal to Leave Oakland for Sacramento After This Year

The A’s will play in a minor league park starting in 2025.
podcast thumbnail mobile
Front Office Sports Today

Inside the Most-Hyped WNBA Draft in History

0:00
0:00

Featured Today

Women’s Basketball Finally Has a TV Deal to Match the Excitement. Now What?

A lucrative new media-rights contract could rectify problems of the past, but the future of March Madness media rights is anyone’s guess.
Mar 16, 2024; Washington, D.C., USA; North Carolina State Wolfpack forward DJ Burns Jr. (30) cuts the net after defeating the North Carolina Tar Heels for the ACC Conference Championship at Capital One Arena.
April 6, 2024

How Two College Seniors Helped DJ Burns Cash In on a Final Four Run

Two college seniors are facilitating deals for NC State’s big man.
Mar 31, 2024; Portland, OR, USA; NCAA officials measure the three point line while coaches from the Texas Longhorns and NC State Wolfpack watch with referees in the finals of the Portland Regional of the NCAA Tournament at the Moda Center center.
April 1, 2024

NCAA Has No One to Blame for Latest Women’s March Madness Transgressions

NCAA is still making avoidable mistakes three years after a complete overhaul.
Nov 16, 2015; Bloomington, IN, USA; General view of the championship banners at Assembly Hall prior to the game between Austin Peay and Indiana.
March 31, 2024

How to Make It in Basketball: Become a Manager at Indiana

Inside the Hoosiers’ unglamorous, profoundly rewarding incubator for basketball’s biggest names.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Nike
Multiple - USA Careers
NBA
Multiple - USA Careers
Dunham's Sports
Multiple - USA Careers

Ukraine’s Improbable Soccer Run Continues With Euros Qualification

The country reaches its first major soccer tournament since Russia’s invasion began.
March 4, 2024

FIA President Under Investigation for Alleged F1 Race Tinkering 

Mohammed Ben Sulayem is being scrutinized for his role in overturning a crucial penalty at F1’s 2023 Saudi Arabian Grand Prix. 
March 6, 2024

Super Bowl LVIII Scores Big With International Viewers

The NFL gets a 10% global boost compared to last year.
Sponsored

Rapid Returns: How Technology Is Getting You Back to Your Seat

How Oracle’s POS technology is helping fans get back to their seats faster.
February 29, 2024

Paris Games Gain Momentum With $2B Completion of Olympic Village

The $2.2 billion housing project finished on time and was essentially on budget.
Everton goalkeeper Jordan Pickford passes during the first half against the Everton.
February 26, 2024

Everton Financial Punishment Trimmed After Appeal Is Partially Successful

Everton’s appeal of the EPL’s 10-point punishment was reduced to a six-point loss.
Lionel Messi
February 23, 2024

Copa América Tickets Climb in Latest Lionel Messi Effect

Tickets for Argentina’s game in Miami are pushing five figures.
German protests
February 21, 2024

German Football League Abandons Outside Investment After Protests

Bundesliga rethinks $1 billion media rights plan.