Premier League clubs announced an emergency meeting back in October to try and stop the new Newcastle United owners from progressing their plans at St James Park and imposed a temporary ban on related party sponsorships.
However, Premier League clubs now have voted to pass a new set of rules which will allow Newcastle United and other clubs to sign new sponsorship deals before the January transfer window.
What Was The Reason that Premier League Imposed the Ban?
Previously, such deals were blocked since October when 18 of the Premier League clubs voted for a temporary ban except Newcastle United voted against the ban and Manchester City abstained as City enjoyed related party sponsorships many times.
Premier League rivals were worried if Newcastle would use-friendly sponsorship deals with related parties to help it get past FFP rules that are in place to prevent rich clubs from spending unchecked.
What does New Rules say?
Moreover, all new sponsorship deals will be thoroughly scrutinized and The Premier League will assess if deals such as shirt sponsorships and stadium naming rights have been negotiated at market value rather. Premier League Clubs will also have to declare any payments to players, managers, and their officials from companies associated with the owner to check if they are for legitimate work rather than a means of offloading some of their main salaries.