The Premier League will thoroughly investigate Emirates Palace’s deal with Man City to ensure it meets fair market value criteria.
So says finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the first test for the top-flight’s new sponsorship regulations.
New sponsorship deals signed by Premier League clubs will be examined to determine whether they involve associated parties.
If evidence of associated-party involvement is found, the deal will be sent to an independent firm that will evaluate if it represents fair market value.
City unveiled luxury hotel brand Emirates Palace, which has links with City owner Sheikh Mansour, as a new global partner last Tuesday (4 January).
The club released their annual financial report yesterday (12 January) and the figures showed commercial income had risen to £271.7million.
Plumley insists that future commercial revenue from deals like the one with Emirates Palace will be heavily scrutinised.
“We haven’t got any direct insight into the process itself yet,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“It’s the type of deal that we imagine will be looked at under fair market values assessment.
“When you do a bit of tracking through, you can see the link. It’s not a direct link, but a link nonetheless.
“It’s one of the first ones to go through that assessment at Premier League level. They’ll be monitoring it closely.
“I believe you strike the partnership and then it will go through the Premier League’s criteria.”
City made a £2.4m profit for the year ending June 2021.
The club raked in £569.8m in revenue during that period.
