Following the news that Premier League teams have banned associated party transactions;

Conrad Wiacek, Head of Sport Analysis at GlobalData, a leading data and analytics company, offers his view:

“The decision by Premier League clubs to ban associated party transactions (APT) will be felt by several clubs across the football league. Premier League teams generate over $1.6 billion from sponsorships, but this move has the potential to make the type of deals which have helped Manchester City rise to the top of the league far more difficult to enact.

“With Etihad providing $75 million annually to Manchester City, the new owners at teams such as Newcastle and Aston Villa were hoping to leverage their businesses and assets to help pump revenue into their clubs to fund their own ambitions. Many have argued that when it was signed, Man City’s deal with Etihad was over inflated and above market value, but this couldn’t be prevented at the time.

“Now, the Premier League is able to scrutinize every type of sponsorship deal being signed by member clubs. With the ban on front of shirt gambling sponsorships due to come into force next season, clubs are already having to think about how to generate sponsorship revenue in new ways, and this new development may actually have the effect of scaring off new owners who saw APTs a means of pumping money into clubs in order to be able to purchase new players and develop their squads much more quickly. ”