In a move to tighten rules regarding “related party” sponsorship, the Premier League a looking into limiting these type of deals.
The Premier League To Tighten Sponsorship Regulation
After the Saudi takeover of Newcastle United, concerns were raised by other clubs regarding a potential transfer and wages arms race.
The current system only considered a sponsorship "related party" if it's reported as such in the club’s annual accounts. This means that deals between the likes of Manchester City and Etihad or Everton and USM (Alisher Usmanov’s company) do not fall in such category.
New deals related to the club owners are temporary banned
For now, any sponsorships proposal of this type will be refused. However, this is a temporary ban while clubs working out for a solution.
A working group has been established to tackle rule changes around sponsorship, headed by the Premier League chief executive, Richard Masters. It was established after the takeover of Newcastle United.
The value of deals should be a fair market price
They are working towards a new system that will require clubs to acquire pre-approval from the Premier League for sponsorship deals. This would ensure that the value of the contract is not inflated but at a fair market price.
The new rules would also cover shirt deals and stadium naming rights agreements.
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