Premier League Temporarily Bans Owner-Affiliated Sponsorships

20 Oct 2021

By: Sport Industry Group

The Premier League clubs have temporarily voted to ban teams from signing sponsorship deals with entities associated with their owners.

The ban, which will only last for a month starting from November, is the latest move in the fallout over the Saudi-takeover of Newcastle United earlier this month.

It has been reported that, at the emergency meeting, Premier League owners raised concerns that Newcastle could sign sponsorship deals at inflated prices with Saudi state-owned companies to allow for more spending on players while worming their way around FIFA Financial Fair Play rules. 

Eighteen clubs voted in favour of the freeze, while Newcastle voted against, and Manchester City abstained after their lawyers advised them the vote was unlawful.

The new rules will only apply going forward meaning that retrospective deals such as Man City’s sponsorship of the Etihad Stadium and Leicester’s naming rights deal for the King Power Stadium will not be affected.