Legal issues behind Newcastle to Liverpool transfer saga explained by sports law expert

A sports law expert spells out all the issues with Isak's case

A leading sports lawyer believes Alexander Isak could leave Newcastle United and join Liverpool before the transfer window shuts but has laid out a wide range of legal issues surrounding the proposed move.

Arne Slot’s Premier League champions had a £110million bid turned down by the Magpies earlier this summer for the Sweden striker, who is desperate to leave. He issued a bombshell statement via social media on Tuesday night which made clear his desire to be allowed to leave.

Newcastle’s wealthy Saudi Arabia-based owners have refused to sell, and sports law expert Richard Cramer, of Arch Law, has aired his views on the proposed transfer in an exclusive interview with TEAMtalk.

Breach of contract?

Isak is refusing to train with his team-mates and play for the club as he tries to force a move to Liverpool.

The Swede and his camp were reportedly furious last summer when new sporting director Paul Mitchell told them Isak would not be getting a new contract.

Previous co-owner Amanda Staveley was said to have discussed improved terms with them in the spring, believing Isak was worth and due a contract upgrade.

That led to a feeling of resentment from Isak, who informed the Magpies at the end of last season of his intention to leave.

Leeds-based Cramer, who has worked in sports law circles for over 30 years, told TEAMtalk: “You do come across scenarios where a player will say they had a promise of a contract renegotiation or the club would release them if a certain valuation was met.

“But the reality is – and this is where agents really need to do their job – is that such ‘side agreements’ do not stack up.

“The standard player’s contract contains an Entire Agreement Clause in it so what you can’t do is manufacture a variation to the contract because there has been a discussion between the director of football and the player.

“Sometimes the player may believe that there is an opportunity to go to another club.

“But unless this is actually contained with the standard contract that is registered with the Premier League then it really doesn’t hold much weight in terms of legal standing.

“That’s argument number one, which I think will fail on Isak’s part.

“Argument number two, which is a little bit legalistic, and imagine there had been a number of discussions between the player and club.

“And with it a very strong promise that, if you play well and score goals, we will either look to renew you with an improvement on your contract or we won’t stand in your way providing we get the right transfer fees.

“But what Isak is arguing is that there have been those discussions and Newcastle have failed to honour their promise.

“Therefore there is a breach of trust and confidence – and that’s the critical issue here.

“In any normal contractual agreement between employer and employee, both parties have to act in good faith and owe each other their duties.

“If those duties are fractured, and the trust and confidence is shattered, then it’s possible for the player to say: ‘the rift is so bad that it’s irreparable, therefore I want to be released from my contractual obligations because the club have committed a repudiatory breach’.

“That’s what Isak is angling for, but I think it’s a very weak argument.

“In the football world, agents, players and directors of football know that anything in terms of a side issue such as a buyout clause and pay increase has to be in writing.

“It’s very hard for a player to argue a breach of trust, but it does happen.

“There are players who have had fall-outs with clubs – Carlos Tevez refused to come off the bench and play for Manchester City in a Champions League match 2011.

“But it’s really got to be the most extreme behaviour from a club to justify a scenario where a player could walk out of his contract.

“But it can happen and what we don’t know is the details of the discussions behind the scenes between Isak and Newcastle.

“Clearly the player feels highly aggrieved and is now agitating for this move.

“But it’s tricky. Newcastle have got an asset potentially worth £150million and they’re not just going to roll over.

“If there was a serious breach, and any risk of the player going on a free, then all parties would come to the negotiating table because Newcastle could not run the risk of losing Isak without a big transfer fee.

“The player, his agent and representatives will probably just be angling for some kind of resolution.

“Isak clearly wants out but it’s a tricky one because he’s also in breach of contract and that isn’t a great optic either.

“He’s come out and criticised the club publicly and said ‘I’m entitled to my say’ but he needs to be very careful because he’s got a contractual obligation.

“He can’t put himself into disrepute with the club and he’s now potentially going to be disciplined for his public outburst on Instagram.

“He might say ‘I’ve been forced into making that statement because of all the conjecture’ but if you study very carefully what Newcastle have said about Isak, they’ve been extremely cautious.”

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Relationship with Eddie Howe remains intact

Isak’s statement on social media earlier this week led to a hardening of Newcastle’s stance that the player is not for sale.

If so, it will be down to Eddie Howe to reintegrate him into the squad after the transfer window, even though Isak has communicated he does not want to play for the club again.

“Eddie Howe has given very little away and you get the impression that Isak and the manager still have a working relationship,” said Cramer.

“I don’t think Newcastle have really done anything wrong.

“Their problem is that they have obligations to the player and they have to make sure that he’s got training facilities, is fit and can perform to the best of his abilities.

“That’s why he’s still training with Newcastle, but not with the first team, so I think the club have made sure that they’re highly protected in this process.

“You feel that Newcastle have acted highly professionally in this dispute; they have not scored any own goals.”

‘Saudi Arabian owners a lot different to Mike Ashley’

Newcastle would probably have sold Isak by now had they still been under the ownership of Mike Ashley.

The Magpies are now owned by an investment group led by Saudi Arabia’s Public Investment Fund (PIF), making them one of the wealthiest football clubs in the world.

“The Saudi-owned Newcastle United is very different to the previous regime under Mike Ashley – who you suspect Ashley would have cashed in on Isak by now,” said Cramer.

“The Saudis have money and there’s no desperation to sell.

“Newcastle also feel a bit peeved by what’s called the ‘Saudi tax’ which is when they come to buy a player, there’s always a feeling that it’s going to cost them more because they’re Saudis and very wealthy.

“On this occasion, they’re digging their heels in.”

Time is running out

With the window due to close in just over a week’s time, it remains to be seen if a deal can be done between Newcastle and Liverpool.

And crucially, according to Cramer, if Isak was to argue that Newcastle had breached their contract with him, he would need to secure a Premier League arbitration – an arbitration tribunal which resolves disputes between the League and its member clubs

“September 1 is clearly a critical date date for two reasons,” said Cramer.

“If the player wants to argue that there has been a serious breach of contract by Newcastle, he would have to get to a Premier League arbitration very quickly.

“But there is probably not enough time to resolve that, so time is against the player.

“Also you have a feeling that Newcastle could stretch this out a bit in their negotiations with Liverpool.

“Newcastle will be thinking ‘can we squeeze more out of Liverpool than their original offer?’ and secondly, if they can bank £130-140milion, they can go out and buy maybe two replacements for Isak.

“They might decide they’re betting off cutting their losses and using that huge fee to acquire players.

“If Newcastle could get their replacements for Isak – which is very difficult – they would probably cash their chips in and sell him.

“But as things stand there are doubts as to whether they can sign suitable replacements before the window closes.”

Could Isak’s behaviour deter Liverpool from signing him?

Newcastle United striker and Liverpool target Alexander Isak

Liverpool are noted for the high standards with which their club is run and also their professionalism in dealing with rivals.

Cramer says Isak’s public outburst on social media could force the Reds to think twice about signing him.

He explained: “Liverpool run a very good ship with good people and take a very holistic approach to how they run their football club.

“The way Isak is behaving – his outburst on Instagram and his non-attendance at the PFA awards – also might impact on Liverpool’s thinking.

“Yes, he’s a great player who can score a load of goals, but do we want someone of that ilk in our changing room?

“This is a difficult year on the back of Diogo Jota’s death so they have got a dilemma in a challenging emotional year.

“All their players need to be fully engaged in not just retaining the Premier League title, but there is going to be emotion around the club.

“They might start to have some doubts now about whether Isak is the right player for the club.

“If I was advising Isak, I think I probably would have kept quiet this week.

“You may say he’s got freedom of expression, but Liverpool might not like that.

“If he can do it to Newcastle, would he do it to Liverpool?

“There are a lot of dynamics at play and the one thing against everyone is time.

“My view is that he’s picked a fight at the wrong club with the wrong owners.”

Selling Isak could boost Newcastle’s PSR

Newcastle narrowly avoided a breach of the regulations in June 2024 following the sales of Elliot Anderson and Yankuba Minteh to Nottingham Forest and Brighton respectively.

Having signed Isak for around £60million three years ago, selling him to Liverpool would represent a huge profit and allay any of club’s Profit and Sustainability (PSR) concerns.

Cramer said: “Like I said, Newcastle in the past would have been regarded as a selling club.

“The Saudis don’t need the money – but PSR is always a challenge for them.

“Leaving aside their feelings and principles about not allowing players to dictate, the profit on Isak will be around £60million and that’s very high.

“That would definitely have an impact on their financial fair play model as well.”

Footballing reasons for Liverpool to push hard

With Manchester City having enjoyed a successful recruitment drive this summer, and Arsenal set to sign Eberechi Eze, Liverpool’s desire to improve their squad further may have just increased.

“Liverpool are clearly title favourites but Arsenal are signing Eberechi Eze, who is a great player and England international,” said Cramer.

“Arsenal now look a top side, and we know Manchester City clearly are as well, so that could increase Liverpool’s determination to sign Isak.

“They might think: ‘we can’t run the risk now, we have to strengthen by signing Isak’.

“The Liverpool hierarchy could go in with a final bid and say ‘take it over leave it.

“You’d have to think that personal terms have already been agreed between Liverpool and the player, even though officially he’s obviously not been granted permission by Newcastle to speak to them.”

St James’ Park boardroom on Monday night

Cramer believes that negotiations for a deal to take Isak from Newcastle to Liverpool could ramp up after the sides meet on Monday night.

The Bank Holiday showdown on Tyneside will be played against a backdrop of feverish speculation about the striker’s future.

“At the moment, it’s gone a little bit quiet and maybe that’s because, ironically, the two clubs are playing each other in a massive game on Bank Holiday Monday.

“You just wondered whether the deal has all gone on hold until Monday’s game is out of the way.”

The $64million question… will it happen?

With the deadline coming into clear focus within the next week, Cramer expects the deal will probably materialise.

“If it moves, it will move very, very quickly,” he said.

“An offer might be made next Tuesday night and by Wednesday lunchtime you could see Isak in a Liverpool shirt all signed up.

“I think it will be £130million plus add-ons based on Premier League and Champions League wins, goals scored and maybe appearances. That could ultimately push it towards £150million.”

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