18 Premier League clubs have voted through a ban on owner-funded sponsors, following Newcastle United’s club takeover.
During a recent emergency meeting of the 20 Premier League clubs, The Telegraph report there was a vote on a new rule to close a loophole in the current FFP regulations.
Club owners aren’t technically allowed to just funnel endless money into their clubs, but the likes of Manchester City have been taking advantage of the fact their owners can simply invest the money through sponsorship deals instead.
The new rule bans owner-funded sponsors, which would hinder any plans for Newcastle’s new owners to invest in their new club in the same way. Newcastle are barred from any sponsorship linked to Saudi Arabia’s Public Investment Fund.
It’s not exactly surprising that the only two Premier League clubs to vote against the rule were Newcastle United and Manchester City. Arsenal voted with the other 17 clubs to introduce it.
Newcastle’s owner spending will be limited by the fact they’re only allowed to make losses of £105m over a rolling three-year period. Any more than that is a breach of the league’s regulations.
Of course, there are still workarounds. Newcastle’s owners can invest heavily in infrastructure to increase the club’s income and they won’t be punished for that, as the rules allow for that kind of investment.
Assuming the owners are keen to throw money at a long-term project, Newcastle should see the rewards eventually. They just can’t take shortcuts like sponsoring the club’s shirt for hundreds of millions and then spending that money on Kylian Mbappe.