Newcastle United’s quiet summer transfer window has exploded into life in recent weeks.
With right wing now ticked off, the Magpies are searching for other areas of the squad to improve in and when news broke of a renewed push to sign Hugo Ekitike, it’s clear that they are preparing to make a real statement next season. Ekitike is regarded as one of Europe’s hottest young prospects and with 15 goals and eight assists in last season’s Bundesliga, he has the track record to back up the hype.
Whilst it will almost certainly take a club record fee to sign the Frenchman, Newcastle should be free enough from PSR worries to sanction such a big deal, even after spending north of £50m on Elanga. The Premier League’s financial rules prevented them from spending in the last three transfer windows, but the club have much more wiggle room this summer.
The sales of Miguel Almiron and Lloyd Kelly have raised around £30m, whilst they also have one more lever they could pull to ensure that a move for Ekitike is financially possible this summer and one that won’t cripple their finances not just now, but in the years to come.
Sean Longstaff to Leeds United latest
One unintended quirk of PSR means that clubs can often be incentivised to sell players that they have developed through their academy systems. It is a policy that Chelsea and Manchester City have used to their great advantage over the years, with scores of players that have spent time in those academy systems moving around Europe - often without many people even realising they had spent time at either club.
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Because of 15 years of neglect under previous ownership, Newcastle United’s academy system is not built to churn out players like those at Manchester City or Chelsea and allow them to reap the PSR benefits. However, Leeds United’s interest in Sean Longstaff this summer could, albeit on a much, much smaller scale, offer them a rare opportunity to access funds and complete a club record deal for Ekitike.
Leeds’ most recent bid of £10m plus £2m in add-ons was rejected by the Magpies as they hold out for more money. They did similarly with Kelly and Juventus, eventually settling for a fee of £20m.
Selling Longstaff for £12m this summer, because of amortisation rules, means Newcastle could then go out and sign a £60m player on a five year contract and have the first payment for that transfer already covered on their balance sheet. Every penny they can eke out of any sale could prove pivotal and getting the very best deal possible for Longstaff could be the difference between being able to purchase their number one targets this summer, or seeing them move to rival clubs.
Football shouldn’t be about financial intricacies like this. Alas that is the way of the modern game and all of the financial governance that surrounds it.
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