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Man City Join Forces With Newcastle United to Challenge Premier League Vote Against Restriction of Sponsorship Deals

Manchester City have joined Newcastle United in questioning the legality of a measure which aims to restrict spending power via the blocking of some sponsorship deals.

Earlier this week, all 20 Premier League clubs were asked to vote on whether to enact a temporary ban on related party transactions - a move that would greatly restrict Newcastle United’s ability to acquire lucrative sponsorship deals.

The motion passed easily, as 18 of the Premier League clubs voted in favour. Newcastle United voted against it, whilst curiously, Manchester City elected to abstain citing concerns regarding the legality of the four-week ban.

Following on from Monday’s vote, The Guardian have relayed that Newcastle consider the vote to be ‘anti-competitive and unlawful’ and owing to this, the Tyneside club are believed to be intent on combatting the measure.

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As reported by Matt Hughes of the Daily Mail, Newcastle are understood to be ‘considering seeking an injunction to block the measure’ in light of 18 Premier League clubs appearing ‘determined to restrict Newcastle’s spending power’.

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Following on from this, the Daily Mail has reported that Manchester City opting to abstain from Monday’s vote was ‘based on legal advice that restricting commercial deals could be considered anti-competitive’.

It is further noted that the Premier League champions also had ‘concerns’ regarding the ‘speed of the decision and the Premier League’s governance’, which some onlookers may note appears to be cartel-like.

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The Daily Mail has also noted that a working party of Premier League clubs – which includes Newcastle – has recently been established to ‘examine further possible rule changes’ whilst the temporary measure could be made permanent in next month’s Premier League shareholders meeting.

Newcastle will be keen to block the measure that they consider ‘unlawful’, and only time will tell whether they will be successful in plans to prevent the ban from permanently coming into effect. 

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