Newcastle United face a huge summer transfer window as they look towards a return to next season's Champions League
Newcastle United manager Eddie Howe celebrates gaining a Champions League place
Newcastle United boss Eddie Howe will be hoping for several new additions to his squad this summer
(Image: CameraSport via Getty Images)
Newcastle United are looking forward to a return to the Champions League next season and a welcome £100million cash boost as a result.
Eddie Howe's side squeezed into the Premier League's top five to secure a spot in Europe's elite competition. However, the Magpies still have work to do as they look to continue their rise under Howe in recent years.
The Newcastle boss hinted at this in the run-up to their final fixture of the 2024/25 campaign as they gear up for a massive summer transfer window.
And Reach PLC's chief business of football writer Dave Powell has explained why Newcastle's PSR (Profit and Sustainability Rules) situation is looking so healthy after concerns in recent seasons.
“The issue of PSR for Newcastle United has been very much front and centre when Eddie Howe has been quizzed on comings and goings over the past couple of seasons," he said. “It has been a genuine concern for the club, and they have had to box clever in order to ensure that they have remained under the threshold that triggers a breach. Big deals for the likes of Bruno Guimaraes, Alexander Isak and Sandro Tonali have tended to be followed by them sitting out a window and player trading, choosing the longer path to success on a piecemeal basis. It has worked.
“Now back in the Champions League for 2025/26, something that will deliver them at least £50m when factoring in matchday revenues, with £100m-plus attainable should they have a run which Aston Villa enjoyed last season, the picture for the 2025/26 financial year is far more rosy.
“They will have greater matchday revenue, broadcast revenue and commercial revenue, and that is before any prize money is accounted for.
“It should be instructive that there hasn’t been the kind of last-ditch player trading that we saw last summer during this period. The club don’t need to move pieces of the puzzle around before the end of their financial year, which comes to a close on June 30, although it’s likely that any incomings are put on hold until the new financial year begins on July 1.
“The reason for the confidence is that the 2021/22 season, when Newcastle lost £73m, has dropped off the three-year PSR cycle, meaning that the period to be assessed will be losses of £72m and £11m against the £105m three-year limit. But with allowable deductions for investment into infrastructure, the women’s team, the academy and community initiatives, and with the Magpies having around £20m per annum in allowable deductions, if we continue to assume that level of deductions then the club, who were net PSR positive for 2023/24 due to the deductions against the losses, could post losses over £70m and still be compliant.
“They aren’t going to do that, though, and with a well-managed financial year, where they limited spend but still achieved competitive success that will be impactful for next season and beyond, they now, for the first time, are starting to see flexibility. They don’t need to sell Isak to fund summer spending. So why would they? They could build some real momentum if they can do as well as 2024/25 in 2025/26. It could be transformational.”