Newcastle United are still carefully considering their options when it comes to talk of a multi-club model but are believed to have held talks with US-based firm 777 Partners.
The private equity firm has a strong portfolio that includes Serie A side Genoa and links with clubs around the globe such as La Liga's Sevilla, Belgium's Standard Liege and French outfit Red Star FC. At the front desk of Manchester City's Etihad Campus, visitors are greeted by the sight of a metallic crest of each of the Citizens' partners - their multi-club model is now in full swing.
From New York to Mumbai, the Premier League champions have built global links that have helped improve the brand with City proudly describing the list as: "Our clubs." Whether Newcastle take the leap like Man City and unveil a string of partner clubs remains to be seen but one of Europe's best-known sports lawyers David Diaz feels that they could be tempted to go further afield and forge links in South America.
Co-owner Amanda Staveley spoke this year about multi-club ideas and said: “Obviously we’ve looked at multi-club. Whenever you look at multi-club. you’ve got to make sure you’ve got the right fit. It’s complicated and we’re also looking at another structure, maybe something a little bit different that gives us more opportunity to work with a lot more clubs (without buying stakes in them)."
READ MORE: Newcastle United fans assured it's business as usual despite MP noise for Premier League probe
It is understood that sporting director Dan Ashworth has been alerted to interest in feeder clubs in Ireland and Scotland, while Eddie Howe himself said at the start of the season he'd like to improve relations with fifth-tier Gateshead FC.
When asked what a multi-club model could look like for Newcastle, Diaz, head of sports law at Baker McKenzie’s Madrid office, told Chronicle Live from the Spanish capital: "From the limited information available at this date given reports on the matter and Amanda Staveley's confirmation that Newcastle United are considering a multi-club model, it would be reasonable to deduce that the intention would be to pool economic resource available across various different teams within a multi-club model.
"In practice, it will probably be a structure in which clubs are based in the more prominent European leagues given the ownership's financial muscle. But I would also not rule out specific regions such as South America where there is an opportunity to develop young talent.
"Furthermore, and perhaps one of the more attractive aspects of the model, is that the existence of a financial partner can help ensure that investments undertaken by Newcastle United do not break Financial Fair Play regulations."
Newcastle's Premier League rivals Man City have a long list of partners that includes New York City, Melbourne City, Yokohama F. Marinos, Montevideo City Torque, Girona FC, Sichuan Jiuniu and Mumbai City FC. Discussing City's progress on this front, Diaz said: "There are advantages and disadvantages to the multi-club model, although the City Group is a successful case study and one various owners are looking to replicate.
"From an operational point of view, clubs belonging to a network allow for better management of available resources, while financially a group of clubs will have a greater capacity to negotiate with its suppliers given its enhanced purchasing potential, in addition to further opportunities with sponsors."
Could that mean that Newcastle could go on to get the pick of stars from top clubs in Italy, Spain or Brazil? Diaz reflected: "There is also the obvious sporting benefit: the movement of players between teams under the multi-club umbrella.
"Having several clubs under a single ownership enables young players who may not have a place in the first team of one of the more competitive sides for legal or sporting reasons to get more playing time and increase their valuation."
Given Newcastle's mixed success with trying to set up clubs for loanees to get experience, the prospect of being able to send youngsters to teams that will guarantee game-time is an exciting one. Newcastle loan boss Shola Ameobi has spent some anxious weekends watching on to see the progress of young United players, only to see Exeter or Hearts name Joe White and Garang Kuol on the bench.
In previous years there have been even worse scenarios such as Matty Bondswell's spell at Shrewsbury where he wasn't fielded at all. But a multi-club situation could change that. This season City sent Yangel Herrera and Yan Couto to partner club Girona in Spain and both have played regular football.
Diaz said: "The idea for clubs like Manchester City is to either transfer those players between sides under the same group or loan them out to ensure they not only get playing time but are also able to meet strict player work permit regulations as a result of Brexit.
"The synergies mentioned above have been clearly seen in the case of the City Group which has a network spanning various continents – it has created a clear brand, achieved success on the pitch and continued to generate revenue.
"However, the multi-club concept is not without its critics and there now seems to be an ever-growing opinion that UEFA needs to revise its regulations – the governing body’s president Aleksander Čeferin has even said so himself in a recent interview with Gary Neville.
"The issue at hand with the model is that there is a possible conflict of interest when it comes to competition and integrity when clubs exist under the same ownership and there is already been a precedent set in the case of Red Bull Leipzig and Red Bull Salzburg – the Adjudicatory Chamber of the UEFA Club Financial Control Body (CFCB) forced the implementation of operational disconnection measures between the teams as the only way to ensure the participation of both sides in the Champions League during the 2017/18 season."
With 777 Partners also having a stake in La Liga side Sevilla, would that open the door to some interesting trading between Newcastle and the Spanish side? The Magpies, of course, became embroiled in a bidding war for defender Diego Carlos last year and such a scene could possibly be avoided with better relations.
Although, Diaz warned of layers of complexity between some of the bigger clubs. When asked if such big trading deals could exist, Diaz said "777 Partners has a minority stake in Sevilla, but given the complexity behind the shareholders of the club, the implementation of a multi-club model including the Spanish side could be difficult. However, two big clubs across top European leagues would certainly create a powerful sporting relationship and could also be the beginning of commercial advantages few can enjoy.
"Logically, Sevilla and Newcastle United have very different ways of operating, and at the moment, a very different sporting track record. "That said, the Spanish club’s experience in Europe and successful transfer strategy over the past decade could be an aspect which has direct appeal and interest to Newcastle United given their enhanced financial power and push for top four."
READ MORE:
- Sven Botman illness update after missing second Netherlands clash
- Everything you need to know about safe standing at St James' Park
Richard Masters quizzed over potential Premier League investigation into Newcastle United takeover
Newcastle United DNA could see Magpies better Sir Bobby Robson's class of 2002
Manchester United injury scare could mean St James' Park audition for Newcastle transfer target
