Newcastle United still have a huge revenue gap to bridge on Manchester United but the Magpies will be in a particularly healthy PSR position when the new cycle begins on July 1
Bryan Mbeumo
Bryan Mbeumo
Newcastle United are in a 'far better financial position' this summer - but the Magpies' rivals are still able to offer greater wages.
That is the view of football finance expert Kieran Maguire after seven Premier League sides had larger salary bills than Newcastle in top-flight clubs' most recently released set of accounts. In fact, it was just last month that Eddie Howe admitted that 'that has been an issue historically under our PSR constraints'.
Although other clubs have made a more aggressive start to the summer, though, Newcastle CEO Darren Eales previously explained how 'it gets a bit easier when you've had a good year like we've had to invest in the future'. This is because the 'housework' Newcastle carried out in each of the previous two windows still counts towards the new three-year PSR cycle, which will take in the financial years ending June 30, 2024, 2025 and 2026.
As a result, the £73.4m in losses that Newcastle made in 2022-23 will also drop out of the aforementioned accounting period when the new cycle begins on July 1.
"The good news for Newcastle United this summer is that the losses they incurred - they lost £73m that year - drop out of the PSR equation on July 1," Maguire told talkSPORT.
"They are going to be in a far better financial position than they have been in the last three windows and they will, therefore, be in a position where they can recruit. Being able to offer Champions League football is certainly beneficial."
Article continues below
However, there is a reason why Newcastle will still have to be smart this summer at a time when top-flight clubs are restricted to losses of up to £105m over a rolling three-year period. The fact remains that the established order still generate far greater revenues and, as a result, can offer far greater wages for targets. Just as Manchester United intend to with Brentford star Bryan Mbeumo, who was among Newcastle's top targets.
"Newcastle United generate half the money of Manchester United, Arsenal, Liverpool and less than half of Manchester City so there is still that gap," Maguire added.
"Based on my figures, and they are very much ballpark figures, the average wage at Newcastle is £98,000 per week and the average wage at Manchester United is £160,000 per week. If that's being offered to a player, that has to be taken into consideration as well as the opportunities that participating in the Champions League bring.
"Personally if I was Newcastle, I'd be trying to get contract extensions on some of their better players to make sure that other clubs don't come in for them and that could be just as good as signing if they manage to get an extra year or two out of them."
Treasure a season to remember
Newcastle United's 2024-25 campaign has to rank as one of the best in living memory. Not only did Eddie Howe's side qualify for the Champions League by securing fifth place in the Premier League, but they ended their long wait for silverware by winning the Carabao Cup
Our special Chronicle end-of-season edition celebrates an incredible campaign for the Magpies, with in-depth analysis, ratings and interviews of a season to remember.
Click here to buy online and have it delivered directly to your door, or you can purchase it in participating supermarkets, high street retailers, and independent newsagents from June 4, 2025. Online postage and packaging costs apply.
Here at ChronicleLive, we are dedicated to bringing you the best Newcastle United coverage and analysis.
Make sure you don't miss out on the latest NUFC news by joining our free WhatsApp group. You can get all the breaking news and best analysis sent straight to your phone by clicking here to subscribe.