Premier League plan to curb Newcastle and Man City spending by preventing use of a global networ.
The Premier League are planning to bring in new rules to prevent clubs using their feeder and/or satellite teams to pay players and coaches in another attempt to curb the spending power of Manchester City and Newcastle.
The new regulations will form part of tightened restrictions on related-party sponsorship deals which are set to be agreed later this month in a direct response to the £305million Saudi Arabian-led takeover of Newcastle.
Newcastle’s new owners have made it clear they are planning to follow the City Football Group model of establishing a global network of clubs, leading to fears among some top-flight rivals that such a set-up could be used to circumvent Financial Fair Play regulations.
Leaked documents obtained by the Football Leaks website in 2018 appeared to show that former boss Roberto Mancini received two salaries when he was at City — one paid directly by the club, the other funded by the Al Jazira Sports and Cultural Club, an Abu Dhabi club also controlled by City’s owner, Sheik Mansour.
Under the new regulations any payments to players or staff from related parties, including sponsorship deals, will have to be declared to the Premier League and will be taken into account for financial regulation calculations.
City were accused of attempting to hide half of Mancini’s salary to get round FFP.
The documents appeared to show that the Italian signed two contracts on the same day he moved to the Etihad in 2011 — a £1.45m-a-year deal with City and another worth £1.75m with Al Jazira which was paid into an offshore shell company based in Mauritius — but the club were never charged with any rule breaches.
The City Football Group have continued to expand since being set up by Mansour in 2013 and now comprise of 10 clubs across five continents.
Newcastle have similar plans and their owners have already held talks with several clubs in Europe about buying an interest, including Inter Milan and Bordeaux, but have yet to agree a deal.
Despite their initial opposition, City and Newcastle have both accepted that tightened regulations are inevitable.