The Saudi event management company reported to be in talks with Newcastle United over becoming its next shirt sponsor in a deal worth £25m a year is owned by the state's Public Investment Fund, the club's majority shareholder, according to its own website.
And that is set to put the Premier League rules around clubs gaining an advantage around commercial deals with related parties under severe scrutiny. League regulations state that sponsorship agreements must be agreed at “fair market value” and will be subjected to an independent assessment but should a deal be struck governance questions will arise over what consitutes a related party when both are owned by the same parent company.
As first reported by Sky News, the St James’ Park club are in talks with Sela over the firm becoming its primary sponsor ahead of next season’s return to the Champions League.
The club’s deal with current shirt sponsor, the gambling firm Fun88, expires at the end of the season.
Neither Newcastle nor the Premier League have commented and no deal has been finalised. Previous reports have stated another Middle East company being in talks with the club.
Sela have been described as an event management agency that claims to have been "the first official athlete representation company in the [Gulf] region." But its own website, which has gone offline this afternoon, stated that it is owned by PIF, which is also the club's majority shareholder.
The company was founded by Dr Rakan Al-Harthy. He is also listed as a director of Qiddiya, a Riyadh-based entertainment project also owned by PIF. Newcastle chairman Yasir Al-Rumayyan also sits on the Qiddiya board, which is chaired by Crown Prince Mohammed bin Salman.
On the Qiddiya website, Al-Harthy's profile page says: "Dr. Rakan Al-Harthy is the founder and managing director of Sela Company. He also serves on the boards of several other companies, including the Event Investment Fund and Qiddiya Investment Company.
"An entrepreneur and innovator, Dr Al-Harthy founded Sela Company (originally known as Sela Sports) nearly 25 years ago and has headed its strategic development.Through joint efforts between government entities and the private sector, Sela participated in the growth of multi-recreational industries."
Newcastle remain behind most of their Premier League rivals in terms of commercial income.
Their most recent financial results, up to June of last year, showed commercial income “increased £8.9m (52%) from £17.6m to £26.5m, reflecting the first year of the Castore sponsorship, increased revenue from Premier League and club commercial partners, and the return of matchday and non-matchday commercial activities and events.”
Yet champions Manchester City said in their last published set of accounts that commercial income was £309.4m, while Manchester United ’s is predicted to be about £275m.
The story comes two days after Eddie Howe’s team sealed a top-four spot and the club’s first appearance in the Champions League since 2003.
Following the scoreless draw against Leicester City on Monday night the manager said his thoughts were already trained on improving the squad ahead of next season.
Howe said that he envisioned signing four new players to bolster the group while saying recruits must show the same “mentality, togetherness, spirit, the right mix of laughter and focus” as those already in place.
“Now we’ve done it and I’m already thinking of what’s next,” he said. “Big summer? Yeah, I think that is where I am in a different position, my mind immediately goes to next season. We don’t just want to enter the competition.
“The biggest challenge for us is to maintain that [squad balance] and improve that while adding to the squad but it won’t be huge numbers.
“We have been really good in the three transfer windows. Now we have become a better team, there are fewer players who can make us better. We don’t have the ability to spend the money people think we have. It will be a small group but hopefully ones who can make a difference.”
