Newcastle United Embarks on Partnership with Saudi Firm Sela
In a groundbreaking development, Newcastle United has entered into a multi-year shirt sponsorship agreement with Sela, a Saudi Arabian company closely associated with the club’s proprietors. This significant partnership, reportedly valued at £25 million annually, could potentially be scrutinised under the Premier League’s rules pertaining to associated party transactions. This information is brought to us by Reuters.
A New Era for Newcastle United
In what is an undoubtedly momentous occurrence Sela, an events company, will supersede Chinese betting entity Fun88, gracing the front of Newcastle’s matchday shirts. Notably, Sela’s corporate structure, as per their official website, places them under the ownership of the Public Investment Fund (PIF). PIF of course conveniently happen to hold an 80% stake in Newcastle United.
A Promising Season Ahead
Fans of Newcastle United have much to look forward to as their team, for the first time in two decades, prepares to step onto the Champions League stage. This opportunity comes on the back of an impressive fourth-place finish in the league in the first full season following the PIF-led takeover, officially approved in October 2021.
A Closer Look at Club Sponsorship Regulations
Following the sale of the club, the Premier League instated a temporary prohibition on clubs entering into sponsorship agreements with businesses linked to their owners. However, this ban was lifted after two months, albeit with the condition that any such sponsorship arrangements would be subjected to evaluation by an independent panel.
This is a move designed to guarantee that these partnerships are at “fair market value” and are not designed to manipulate revenue, enabling more considerable spending within the confines of Financial Fair Play regulations.
The PIF Influence
The PIF, chaired by the Saudi Arabian Crown Prince Mohammed bin Salman, has been making waves not just in football but in sports across the globe. Earlier this week, it made headlines in the world of golf, with its sponsored LIV Golf making the surprise announcement of a merger agreement with the PGA Tour and the DP World Tour.
Furthermore, the PIF extended its influence in the football world by acquiring majority ownership stakes in four of the country’s premier soccer clubs, which include those of football heavyweights Cristiano Ronaldo and Karim Benzema.
With this new partnership with Sela, it seems the ties between Newcastle United and PIF are set to deepen even further. The coming season will undoubtedly be one to watch for both Newcastle United fans and Premier League enthusiasts at large.
