Drop would not derail Toon case
ARBITRATION BID CAN GO AHEAD EVEN IF CLUB ARE RELEGATED - LAWYER
NEWCASTLE United’s intention to pursue arbitration talks with the Premier League over the failed takeover can ‘go ahead’ even if the Magpies are relegated.
That is the view of sports law specialist Peter Nunn, who believes it would be in United’s best interest to resolve their dispute regardless of whether they are playing Championship football next season.
United released a statement last week in response to a High Court ruling against the club’s application to remove Michael Beloff QC from the three-man arbitration panel.
The publication of the ruling confirmed Lord David Neuberger and Lord John Dyson would also sit on the panel for the hearing.
Newcastle’s statement reiterated owner Mike Ashley’s intention to ‘fight tooth and nail’ to push through the agreed deal with the Saudi-led consortium.
However, questions have understandably been raised as to whether proceedings can continue if the Magpies lose their top-flight status.
There is also the small matter of whether the Saudi-led consortium would remain interested in a deal in that scenario.
While the third demotion of the Ashley era would strip the Magpies of their member status with the Premier League, legal director Nunn of London-based law firm Mishcon de Reya insists this would not be a barrier to proceedings going ahead.
The sports law specialist believes United would only risk revisiting the same stumbling block in the future if they do not obtain a resolution in the coming months.
He said: “The arbitration can still go ahead, even if Newcastle are relegated.
“What matters is whether Newcastle were a member of the Premier League at the time of the “cause of action” - the point at which Newcastle are alleging the Premier League were in the wrong.
“It becomes an issue for the EFL to decide if the Saudis still want to buy a Championship club.
“However, if they are not relegated they still have the same issue where they have to meet the Premier League’s test.
“It is in United’s interest to resolve it whether they go down or not and to obtain the Premier League’s okay for this takeover to go through.”