A temporary ban on owner-related sponsorship deals in the Premier League has been lifted although clubs will now be required to seek approval on deals worth more than UK£1 million (US$1.32 million), according to reports.
The block on such transactions was imposed in October and backed by 18 top-flight clubs following the Saudi-led takeover of Newcastle United.
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A working group of club executives, which included Magpies director Amanda Staveley, was set up to look at ‘associated party transaction regulations’ and those rules have been agreed at a shareholders’ meeting on 14th December.
According to the Guardian, if a club has a proposal worth more than UK£1 million from an entity with a perceived link to their owners they must go before the league’s board to prove that it is of fair market value.
The league will consider evidence from the club and an independent agency with expertise in the field of market valuation. The board will take advice from an independent assessor, listen to the club’s own assessment and also look at an anonymised data bank of similar deals before making a judgement.
Newcastle and Manchester City were the only two clubs in the league to vote against the proposal, the report says.
