Kanji Posted October 27, 2021 Share Posted October 27, 2021 (edited) From the Athletic https://theathletic.com/news/newcastle-included-in-working-group-set-up-after-premier-league-meeting/lLUBCzXJYH6o/?source=twitteruk: Quote Close attention would be paid to market value and inflated deals would be blocked. Industry sources estimate that Newcastle’s shirt deal is worth in the region of £5 million annually. A related company trying to pay three or four times as much would be forced to explain how and why that higher valuation had been reached — and most likely see the agreement rejected. Premier League sources have told The Athletic that the rules will be broad and wide-reaching. They could cover any of the firms that the PIF, for example, has invested in — even the likes of entertainment giant Disney. “If Disney offers £4 million a year to sponsor the shirt, no one’s going to complain,” said one. “It’s a fair deal. But if they offer £20 million, they could well be classed as a related party — simply because it’s not a realistic market value. That’s the point. “I don’t think anyone seriously thinks Disney would do that, but there might be other related companies, less well known, who could be used to pay well over the odds.” I understand what the source is getting at, but I can't accept that "OK so Newcastle United is a 5m a year shirt team, and Liverpool is a 25m a year shirt team" - the whole point of these commercial deals is proforma and growth. Someone spending 10m, 15m, or even 25m a year on a shirt deal will be doing so based on the growth potential. To me that is a limit to free market. The materiality and thresholds should be based on comparable brands, companies, etc. ie: the airline companies have average of X, high - medium - low of X. I am very uncomfortable with how it's portrayed - esp the "and most likely see the agreement rejected" which is terribly unreasonable and incredibly poor way to conduct business. Edited October 27, 2021 by Kanji Link to post Share on other sites More sharing options...
Sima Posted October 27, 2021 Share Posted October 27, 2021 They've only invited us in to keep the peace but know fine well we will be outvoted in anything. Link to post Share on other sites More sharing options...
morpeth mag Posted October 27, 2021 Share Posted October 27, 2021 I hope we send NDM as our rep together with a tape recorder Link to post Share on other sites More sharing options...
TheHoob Posted October 27, 2021 Share Posted October 27, 2021 Just sounds like some seriously unworkable bollocks to me. Link to post Share on other sites More sharing options...
PauloGeordio Posted October 27, 2021 Share Posted October 27, 2021 2 minutes ago, TheHoob said: Just sounds like some seriously unworkable bollocks to me. Hopefully 🤞🏻🤞🏻 Link to post Share on other sites More sharing options...
et tu brute Posted October 27, 2021 Share Posted October 27, 2021 3 minutes ago, morpeth mag said: I hope we send NDM as our rep together with a tape recorder It's totally anti-competitive and would be thrown out of court. I really hope the other clubs do try and block PIF as it will open the powderkeg on everything. Link to post Share on other sites More sharing options...
madras Posted October 27, 2021 Share Posted October 27, 2021 You'd thinknit would be easy to explain. "This team has gone from a one of largely local fan base to a world wide one" Link to post Share on other sites More sharing options...
TheHoob Posted October 27, 2021 Share Posted October 27, 2021 (edited) 6 minutes ago, madras said: You'd thinknit would be easy to explain. "This team has gone from a one of largely local fan base to a world wide one" Exactly. Who decides what the market value is? What if the club disagree with that valuation? Just don't see how this can really work in practice without having a load of holes open to challenge. Edited October 27, 2021 by TheHoob Link to post Share on other sites More sharing options...
STM Posted October 27, 2021 Share Posted October 27, 2021 I suspect our new market value has skyrocketed anyway. Any smart sponsor would be interested in a new brand, which is certain to go places. So what if Aramco can't sponsor us, you reckon we can't do a multi million deal with someone like Chevrolet, like Man Utd did. All we have to do for the next 4/5 seasons is close the gap. Which takes alot less money than a real title challenge would. They are really desperate if they think it will even dent our marketing opportunities. Say we build a new training ground, absolutely nowt to stop us getting a big sponsor like Arsenal did for the Emirates stadium (albeit on a smaller scale). There are endless opportunities for growth, without even tapping into Saudi Links. Link to post Share on other sites More sharing options...
Whitley mag Posted October 27, 2021 Share Posted October 27, 2021 Sounds like the source is very much blind to competition laws. As someone mentioned above we’ve been invited in just so it doesn’t look like collusion. The arrogance is unbelievable and I’m sure the club will be all over this. Link to post Share on other sites More sharing options...
Fantail Breeze Posted October 27, 2021 Share Posted October 27, 2021 2 hours ago, Kanji said: From the Athletic https://theathletic.com/news/newcastle-included-in-working-group-set-up-after-premier-league-meeting/lLUBCzXJYH6o/?source=twitteruk: I understand what the source is getting at, but I can't accept that "OK so Newcastle United is a 5m a year shirt team, and Liverpool is a 25m a year shirt team" - the whole point of these commercial deals is proforma and growth. Someone spending 10m, 15m, or even 25m a year on a shirt deal will be doing so based on the growth potential. To me that is a limit to free market. The materiality and thresholds should be based on comparable brands, companies, etc. ie: the airline companies have average of X, high - medium - low of X. I am very uncomfortable with how it's portrayed - esp the "and most likely see the agreement rejected" which is terribly unreasonable and incredibly poor way to conduct business. Even more ridiculous by the fact our current commercial agreements are way below market value because of the previous idiot in charge. If there was a cap on deals across all teams, i.e. nobody can come in and pay about £30m a season for a shirt deal because that’s silly, fair enough. I get the need for something like this, to prevent blatant circumventing FFP. But it should be done on a level playing field and not just because you’re upset about Newcastle. Link to post Share on other sites More sharing options...
Dokko Posted October 27, 2021 Share Posted October 27, 2021 The club will appeal any decision against them in court if necessary and it will be the clubs who pick up the bill via the PL as less money is distributed between them to cover legal costs. PL were lucky our side walked away without asking them to pick up the £10m legal tab. If they want round 2, 3 and 4, I say bring it on. Link to post Share on other sites More sharing options...
Optimistic Nut Posted October 27, 2021 Share Posted October 27, 2021 Pretty ironic given the banner Boro fans held last weekend. Link to post Share on other sites More sharing options...
Wandy Posted October 27, 2021 Share Posted October 27, 2021 3 hours ago, et tu brute said: It's totally anti-competitive and would be thrown out of court. I really hope the other clubs do try and block PIF as it will open the powderkeg on everything. These fuckers have been running a multi-billion pound industry like a country club but that's coming to an end now. These fucking amateurs have no idea what is coming to them when this ends up in court. They will be wishing that they had kept their mouths shut and not rocked the boat. Link to post Share on other sites More sharing options...
Fantail Breeze Posted October 27, 2021 Share Posted October 27, 2021 37 minutes ago, Optimistic Nut said: Pretty ironic given the banner Boro fans held last weekend. Teams may as well just have banners that say: ”No to Saudi investment, unless it’s in us”. Because that’s pretty much all it is Link to post Share on other sites More sharing options...
NE27 Posted October 27, 2021 Share Posted October 27, 2021 Gonna be a few moral resignations in the morning you would imagine. Link to post Share on other sites More sharing options...
robbo_11 Posted October 27, 2021 Share Posted October 27, 2021 The league is ran for greed, but I can't see this going on as surely all clubs are causing longer term damage as brands no longer will look to invest in the Premier League. It has been said by numerous sources that it is pretty much illegal, but you have to feel like some clubs are now trying to prevent others from commercial growth through other means to reduce competition. Independent regulation will come in at some stage and a number of deals will be looked at for "market value". Link to post Share on other sites More sharing options...
Kanji Posted October 27, 2021 Share Posted October 27, 2021 Put it this way, PIF's investment in Disney, Uber, etc are not material. PIF have no control over those companies and simply have large dollar values invested in massive companies. (Perhaps Uber may be a conflict of interest because Yasir is on their board) but overall this "working party" restricting Disney, Boeing, Citigroup from signing outlier commercial deals is damning. If say Tesla wanted to build a plant and office in Brighton and they wanted their brand name all over the Amex and out-bid Amex for the stadium names and even sign a shirt deal - who is to say that "working party" is to set the value based on what Amex signed X years ago? That doesn't make any sense. Link to post Share on other sites More sharing options...
madras Posted October 27, 2021 Share Posted October 27, 2021 4 hours ago, Whitley mag said: Sounds like the source is very much blind to competition laws. As someone mentioned above we’ve been invited in just so it doesn’t look like collusion. The arrogance is unbelievable and I’m sure the club will be all over this. Could be fun though as they sit there and outline their plans while our delegate sits there and simply says "Nnnnnnno, I don't think so". Link to post Share on other sites More sharing options...
BlueStar Posted October 27, 2021 Share Posted October 27, 2021 Some of our new Saudi fans confused and appalled in the replies Link to post Share on other sites More sharing options...
Slim Posted October 28, 2021 Share Posted October 28, 2021 Link to post Share on other sites More sharing options...
Rafalove Posted October 28, 2021 Share Posted October 28, 2021 6 hours ago, BlueStar said: Some of our new Saudi fans confused and appalled in the replies you’re surprised? Link to post Share on other sites More sharing options...
Rafalove Posted October 28, 2021 Share Posted October 28, 2021 5 hours ago, Slim said: I mean to be fair to Boro this is basically the “we live in a society”, meme isn’t it? Although maybe his could be the start of their investment in the north east? Link to post Share on other sites More sharing options...
Ben Posted October 28, 2021 Share Posted October 28, 2021 5 hours ago, Slim said: I don't know if the Saudis buying Newcastle had anything to do with this deal (I'm sure it helped and was discussed with Boris last year) but this is huge for engineering in the North East loads of suppliers will get some great contracts from this and if they can convert it will be huge. Things are looking really good up here just now (we just need the living wage increases to be matched across all jobs) Link to post Share on other sites More sharing options...
Newcastle Fan Posted October 28, 2021 Share Posted October 28, 2021 (edited) 70% of Sabic's shares are owned by Saudi Aramco who's chairman is also our chairman so there is a direct link there, he has brought in directly and indirectly more than a billion pound of investment in the region this month alone Edited October 28, 2021 by Newcastle Fan Link to post Share on other sites More sharing options...
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