Newcastle could launch compensation case against Premier League following APT decision

This week it was revealed that Manchester City had triumphed over the Premier League in their arbitration case concerning Associated Party Transactions.

While the Premier League also tried to claim the victory, the big takeaway was that the APT rules were deemed unlawful and changes will need to be made.

The rules were hastily introduced following Newcastle United's takeover by the Saudi Arabian PIF amid fears that the incomprehensibly rich owners could flood the club with money and rise to the top of the league overnight.

Between APTs and tightened Profit and Sustainability Rules, Newcastle have found it hard to close the gap to the "Big Six" due to the restrictions put in place.

Newcastle could seek damages for money they've missed out on due to APT restrictions

However the rules didn't just affect Newcastle and after a while Manchester City decided to fight back. Now that they've won their case, The Athletic believes City could go after the Premier League for loss of earnings due to not being able to sign certain partnership deals as APT rules deemed them unfair.

Newcastle could also do something similar as the club still has no sponsor for the training ground, training kit or stadium, all of which would likely have been done a long time ago were it not for the APT rules. However, the report suggests it's unlikely to be earth-shattering sums of money.

The PIF have a stake in several massive companies who could strike lucrative sponsorship deals with the club which would all serve to promote the PIF's interests.

Newcastle will find it easier to make deals with PIF-backed companies

It definitely feels like Newcastle have been holding off to see what happens with APTs before jumping into partnerships that may be worth less than what the PIF's other businesses would be willing to pump into the club.

There are still things to sort out regarding the future of APTs so we're not expecting the SAUDIA Stadium at St James' Park to be a thing next week, but we don't think it will be long before we see something happening.

These deals could be huge for Newcastle in terms of skirting PSR and building a team capable of competing with the "Big Six" on a consistent basis.