Newcastle United will see the new Premier League financial restrictions as an opportunity to improve their transfer budget, given their expanding earnings.
That is the opinion of finance expert Kieran Maguire, who exclusively told Football Insider that Newcastle’s recent deals with Adidas, Sela, and Noon will assist raise their revenue projections.
This month, Premier League clubs opted to implement new financial policies that parallel those in place under UEFA.
Club spending on wages, transfer fees, and agent fees will be limited to 85 percent of total revenue; Uefa caps spending at 70 percent, requiring clubs participating in Europe to slash spending even lower.
Newcastle reported revenue of £250 million in their most recent 2022-23 reports, and commercial arrangements with Adidas, Sela, and Noon will help the Tyneside club maintain its financial success.
Newcastle will support new rules to increase transfer budget
Maguire stated that Newcastle will see the new laws as the “least worst” option available to them.
“I think ambitious and aspirational clubs such as Newcastle United or Aston Villa will see the new financial rules as an opportunity,” Maguire told Sean Fisher of Football Insiders.
“It’s an opportunity for the club to increase money, which will allow them to enhance their transfer budget.
“Newcastle have inked arrangements with Adidas, Sela, and Noon, as well as strengthened their position as commercial partners in the Middle East.
“They are well aware that for every extra £100 they make, they may add an extra £70 to their spending bucket – or £85 if they are not in Uefa competition.
“So I believe Newcastle will have considered these proposed alterations as the least worst choice.
“Newcastle will want to be in Europe on a regular basis and will therefore have to comply with Uefa financial rules – so they might as well replicate them in the Premier League to have to deal with only one set of regulations.”
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