May 19, 2024

Newcastle United stand to benefit from planned changes to the Premier League’s financial model.
The majority of Premier League teams have agreed in principle to FFP/PSR regulation modifications, which will boost Newcastle United’s Saudi-backed acquisition.

Toon chiefs were said to be leading the push for “anchoring” – a system in which teams’ spending power is limited by how much TV revenue the bottom-placed team collect. These proposals would effectively cap transfers, salary, and agent fees beginning with the 2025-26 season.

Last season, Newcastle’s salary cost was £84 million, with agent fees totaling £19 million, according to BBC. Assuming salaries have not grown dramatically, Newcastle would have been able to spend an additional £292 million last summer.

 

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FFP/PSR has become a heated topic in recent months, following Everton and Nottingham Forest’s points deductions. Premier League clubs also had a frugal January transfer window, spending £700 million less than last year.

Newcastle supported the measures intended to level the playing field throughout the division. Only Chelsea would have violated these regulations if they were followed in 2022-23.

Unsurprisingly, the biggest spenders, Manchester United, were opposed to the concept. The Red Devils have the Premier League’s largest pay expenditure, at £205 million.

Today’s decision was merely “in principle,” and a more detailed breakdown is likely before June’s AGM shareholder meetings. Another sticking point is how the plans will work alongside the amended FFP/PSR regulations, which were approved by clubs last month to align the Premier League model with UEFA’s.

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