Newcastle United and Everton are to attend ’emergency meeting’ as ‘civil war’ intensifies

The Premier League is the world’s most economically successful and top football league, yet Everton and Newcastle United are among the clubs unhappy with how it is being administered.

Everton has already faced the wrath of the Premier League’s PSR (Profit and Sustainability Rules) enforcers, receiving two different point reductions last season for financial violations.

And the drama has not ended. Everton will face another PSR hearing this year on the capitalisation of loans used to support the development of the Bramley Moore Dock stadium.

This might result in a fine or, theoretically, another point deduction.

Naturally, this would infuriate Everton fans, who already believe the Premier League has treated the team unfairly.

Newcastle has not broken PSR, which restricts losses to £105 million over a rolling three-year period, but they did come close to exceeding the threshold in 2023-24.

It is worth noting that the two clubs were among those who presented information in Manchester City’s legal challenge to the Premier League’s associated party transaction (APT) rules, which control commercial dealings.

The repercussions from that case continue to spread, with Everton and Newcastle directly engaged.

Everton and Newcastle United

Both the Premier League and Manchester City have claimed victory in the APT case, which has sparked considerable infighting inside the division.

According to The Times, Everton and Newcastle will be among the representatives for ’emergency discussions’ with the Premier League’s most important stakeholders in an attempt to ease tensions.

The meetings will take place in London, with a focus on amending the APT regulations after an independent tribunal declared some of them to be unlawful.

Why are Everton and Newcastle backing Man City?

Everton were outraged when Leicester City dodged penalties for PSR violations on a technicality earlier this year, especially given that Premier League teams were required to reimburse their legal fees.

There is also outrage on Merseyside that the Premier League believes that infrastructure spending should be exempt from PSR but not interest payments on infrastructure loans.

The Premier League will most likely have to modify its rules on soft loans from shareholders, or interest-free loans from owners, as a result of the APT case.

Ironically, the policy could backfire on Everton, which has over £400 million in soft loans. However, the impending change of ownership, with Dan Friekdin taking over from Farhad Moshiri, may change things.

Newcastle’s intentions for supporting City are apparent. Like City, they are effectively controlled by a Gulf state that wishes to reach the pinnacle of football.

To accomplish this, they must circumvent PSR. And commercial revenue from APT arrangements, such as Newcastle’s front-of-shirt and sleeve deals with Sela and Noon, would allow them to invest in the club.