‘Ludicrous’: Pundit says Newcastle United could end up ruining football after APT ruling

Newcastle United stands to gain significantly from the Premier League’s recent Associated Party Transaction (APT) ruling, though the benefits may take time to materialize.

This landmark decision, which an independent tribunal deemed unlawful and nullified, has sent shockwaves through English football. The APT rules, introduced shortly after Newcastle’s Saudi owners took over, were a source of frustration for co-owner Amanda Staveley, who criticized other clubs for backing the rules out of fear of Newcastle gaining an unfair advantage.

These regulations have hindered Newcastle’s progress, limiting their ability to secure lucrative sponsorship deals that could have bolstered their commercial revenue and transfer budget.

Fans, frustrated by the constraints imposed by these rules, have even called for Premier League CEO Richard Masters to step down after the APT ruling.

The ruling came following Manchester City’s challenge after their own high-value deals were blocked in 2023. Now, with the rules overturned, Newcastle finds itself in a position to capitalize on the decision, albeit not immediately.

Stan Collymore, a former Liverpool striker and a figure not widely admired among Newcastle supporters, has weighed in on the implications of the APT ruling for the club.

Collymore, who famously scored a goal that dashed Newcastle’s Premier League title hopes in the 1995/96 season, has been more supportive of Eddie Howe’s players in recent times.

In his column for CaughtOffside, he acknowledged Newcastle’s potential future dominance but expressed concerns about the broader implications of unchecked spending in football.

Collymore argued for financial regulation and transparency that allows all clubs to grow sustainably without creating an environment where a single club, like Newcastle, can outspend everyone else.

He warned that once Newcastle’s financial restrictions are lifted, their spending power could overshadow other clubs, potentially leading to a future where the Premier League’s competitive balance is eroded.

He suggested that success driven solely by money diminishes the value of trophies, emphasizing the need for a league that isn’t entirely dictated by financial muscle.

Despite Collymore’s reservations, the APT ruling does not exclusively benefit Newcastle. Other clubs, including Chelsea, Manchester City, and Manchester United, also stand to gain from this decision.

For Newcastle, the immediate impact remains minimal, though the club could potentially seek compensation from the Premier League if they can prove financial losses incurred under the now-defunct rules.

Manager Eddie Howe has felt the brunt of these restrictions more than anyone. The APT rules, combined with other financial regulations, have forced Newcastle to operate within tight constraints, leading to significant player departures.

Last summer, the club sold Elliot Anderson and Yankuba Minteh, followed by the January exits of Lloyd Kelly and Miguel Almirón. These moves, driven by the need to comply with PSR and avoid potential points deductions, have hampered Howe’s ability to strengthen his squad effectively.

While Newcastle officials remain pragmatic about the long-term benefits of the APT ruling, they acknowledge that it won’t bring immediate relief. However, the decision represents a step forward for the club’s ambitions.

The removal of these restrictions opens the door for Newcastle to build a more competitive squad and secure the commercial deals necessary to sustain growth at the highest level.

Looking ahead, Newcastle must strategically position itself to maximize the opportunities created by the APT ruling. This involves pursuing new sponsorship agreements and exploring legal avenues for compensation, should they choose to hold the Premier League accountable for past financial constraints.

The ruling also underscores the importance of sustainable growth, balancing the club’s newfound financial freedom with prudent decision-making to ensure long-term success.

While Newcastle fans may have to wait to see the full impact of this decision, the APT ruling marks a turning point for the club. It provides hope for a future where Newcastle can compete on a more level playing field with the Premier League’s traditional powerhouses.

For now, patience and strategic planning will be key as the Magpies navigate the transitional period ahead, laying the groundwork for a brighter and more competitive future.