Senior sources at Newcastle United are frustrated about the fact owners PIF keep being quoted huge fees in the transfer market.
Newcastle United need a big summer in the market in preparation for next season’s Champions League campaign.
The club were unable to sign players last season due to the Premier League’s Profit and Sustainability Rules (PSR), which do not allow clubs to lose more than £105million over a three-year accounting period.
While Newcastle are in a healthy PSR position now, it doesn’t mean the club can suddenly start splashing the cash all of a sudden. Indeed, PIF are reportedly unhappy about the fact they are seen to have huge money to spend.
There’s still PSR to consider and, according to The Daily Telegraph, people close to the Newcastle United owners are trying to explain to rival clubs that their spending power isn’t as sizeable as people may think.
Geordie Boot Boys spoke to football finance expert Adam Williams on the matter.
Photo by Ian MacNicol/Getty Images
Photo by Ian MacNicol/Getty Images
Why PIF ‘aren’t telling the truth’ about Newcastle United’s spending power
Williams believes such claims should be taken with a pinch of salt. Though there will be added costs next season, qualifying for the Champions League obviously brings in some very welcome revenue.
“Next season, they have got Champions League revenue guaranteed,” he said.
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“Yes, there will be costs associated with that as well – higher running costs with performance-related bonuses, extra expenses with having the stadium open for at least another four days and so on. “
“But on a net basis, they are going to be massively up.
“So, I think if the club are briefing that they are constrained by PSR, we should take that with a large dose of salt.
“Often when clubs do this – and I’ve seen it first-hand – it’s about expectation management.”
While Williams adds that club insiders are likely to mean they do not feel it’s wise to completely max out their PSR headroom in one transfer window, there is still a sizeable amount of money to spend.
“Newcastle could spend £200-300m freely this summer and not worry about PSR in the current assessment window,” he said.
Photo by Scott Llewellyn | MI News/NurPhoto via Getty Images
Photo by Scott Llewellyn | MI News/NurPhoto via Getty Images
“I think probably what the club insiders really mean is that they don’t think it’s wise to max out their PSR allowance this season and then hamstring themselves for next season.
“There’s that nuance there that is hard to communicate to fans, but I think the communication strategy of Newcastle and a few other clubs could be a bit more transparent here, though I do understand that’s not an easy sell.”
Newcastle United’s summer transfer budget explained
Williams spoke to Geordie Boot Boys earlier this week, too.
During the discussion, he suggested Newcastle could spend more than £100million this summer.
That may not sound like a huge amount compared to some of their Premier League rivals but it does at least give Eddie Howe scope to improve his squad.
The Newcastle United manager won the Carabao Cup and qualified for the Champions League without making a major signing since the summer of 2023.
Quite what he’d be able to do next season after some much-needed additions to the squad is an exciting prospect…