Newcastle and Chelsea face £2.5bn moment of truth as Premier League issue statement

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Newcastle United and Chelsea have the chance to publicly put to bed an issue that has ensnared them both for over a year.

Chelsea and Newcastle have been the subjects of the Premier League’s most high profile takeovers in recent years.

While both clubs have spent heavily under their new owners – Todd Boehly’s Clearlake Capital and the Saudi Public Investment Fund – they have had wildly different philosophical approaches.

Newcastle, concerned with remaining within the Premier League’s Profit and Sustainability threshold, have focused on smart player and staff recruitment and commercial growth.

Chelsea’s philosophy meanwhile since Boehly’s £2.5bn takeover has been similar to Mark Zuckerberg in Facebook’s early days: move fast, break things.

However, unlike Facebook, Chelsea have broken a lot of things but with very little to show for it apart from a bloated squad, a historically huge amortisation bill, and a fast moving managerial conveyor belt.

Given Clearlake’s bombastic approach, it might surprise some readers to learn that they have close links and an excellent relationship with the Public Investment Fund.

In fact, those links are so tight that it has caused some to question whether there is a conflict of interest.

Now, however, the two entities appear have the chance to prove their corporate integrity.

• READ MORE NEWCASTLE NEWS: Fabrizio Romano says Newcastle are in ‘active contact’ with ‘colossal’ player’s agents

Premier League rule change to give clarity on Newcastle-Chelsea ownership

The Premier League’s rules have long stated that no individual – be that a director or an owner – can have a material influence over two clubs.

Of late, this has caused issues for Crystal Palace owner John Textor, who is keen to invest in Everton but must first divest his ~10 per cent stake in Palace.

PIF are not direct investors in Clearlake, but Clearlake do oversee billions of dollars worth of the Newcastle owners’ assets, prompting some to suggest a link between the clubs.

Reports last year suggested that the Premier League had received legal assurances that there were enough degrees of separation between the two.

And a new Premier League rule change is expected to confirm those stories.

As relayed via finance expert and former Man City adviser Stefan Borson via X, the Premier League now requires that owners of all clubs disclose any interest in any other clubs worldwide – whether informal or formal, no matter how small.

If there is as any overlap between the corporate structures or the two clubs, they would have to disclose it ahead of the new season.

The rule change is documented in the Premier League’s handbook, which was officially released last week.

TBR Analysis: What is the future for Newcastle and Chelsea in terms of multi-club ownership, associated-party transactions and Premier League governance?

It is a complex time for Premier League and UEFA governance at present.

Man City appear to have failed in their challenge on the Premier League’s associated party transaction rules, which will come as a blow for both Newcastle and Chelsea.

Meanwhile, UEFA is clamping down on multi-club ownership, which both clubs want to purse.

It appears that, rather than tearing down the system, Newcastle and Chelsea will need to operate within the existing structures for the foreseeable future.