Exclusive: Newcastle want 'Dramatic' legal twist after Man City latest

Newcastle United need the associated party transactions (APT) rules to change dramatically before they can agree substantial off-field deals, sources have told Football Insider.

Man City have taken legal action against the Premier League regarding the APT rules currently in place, with the club claiming the regulations are “unlawful”.

After a two-week private arbitration hearing took place in June, The Times reported on 26 September the lawyers acting on behalf of both parties have been notified of the independent panel’s decision.

The newspaper claimed Man City appear to have scored a significant victory in the case after a vote on an amendment to the APT system was dropped from the latest top-flight meeting.

The scheduled vote at the shareholders’ meeting was due to be held on the databank, which the Premier League board uses to assess fair market value in commercial deals under the APT rules.

But sources have told Football Insider an alteration to the databank system alone wouldn’t be enough to make much of a difference to Newcastle’s situation.

Man City would need to force a “dramatic” change to the APT rules to allow the Tyneside club more freedom to agree larger off-field deals.

Newcastle situation unlikely to change after Man City case

Football Insider revealed on 6 June Newcastle were prepared to submit documents in support of Man City before their APT hearing took place.

Eddie Howe’s side were close to the spending limit last season, with Premier League clubs only permitted to make £105million of losses over a rolling three-year period.

The north-east giants sold Yankuba Minteh to Brighton for £30million and Elliot Anderson to Nottingham Forest for £35million before the 30 June accounting deadline to help them avoid a potential points deduction.

A significant relaxation of the ATP rules would mean top-flight sides could agree sponsorship deals as high as they wanted with no challenge, increasing the amount they could spend under the PSR rules.

But sources have told Football Insider it doesn’t appear as though Man City have achieved enough success following their hearing to give Newcastle the helping hand they require.

Football Insider revealed on 20 September the Premier League would likely need to amend the APT rules immediately if Pep Guardiola’s side were wholly successful in their legal battle.

In other news, Newcastle told to accept striker offer after new twist.

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