The big question on everyone’s lips after a frenetic 72 hours of transfer business at Newcastle United is: Can they now spend after the unofficial ‘transfer deadline’ of June 30th has passed?
In short, yes. The rolling three-year period of profit and sustainability rules [PSR], where clubs must make no more than a £105m loss, has now reset. As such, the huge spend seen at Newcastle during the 2021/22 campaign is now in the rear-view mirror.
Newcastle are not going to throw money around unnecessarily, as seen with the arrivals of some free transfers in recent days. They believe they have done enough in the past 72 hours – selling Yankuba Minteh and Elliot Anderson for a combined £68million, and agreeing a deal with Manchester United for Dan Ashworth – to ensure they will not fall foul of the Premier League’s spending regulations.
Now, attention can turn to what Newcastle are able to do in the remaining weeks of the summer window. It is worth remembering the north east outfit are debt-free and have the backing of the Saudi Arabian Public Investment Fund. In truth, they are a very sustainable football club.
But after spending upwards of £400m in new players since early 2022 – and recouping just a slither of that in players sales – drastic exits were needed to plug the financial void in recent days. After posting losses of £70.7m in 2021-22 and £73.4m in 2022-23, the club know they must still spend within their means going forward.
Thankfully commercial revenue continues to grow – up from £180 to £250m in the last accounting year – and the club’s bumper new Adidas deal can be placed on the balance sheet going forward. There is also a significant amount of money being made from the deal with front of shirt sponsor Sela, while extra avenues are being explored in the form of finding a training kit sponsor and potentially selling the naming rights to St James’ Park further down the line.
With each passing season, the ownership are ensuring more revenue streams are opening. A return to European football next year and another few global tours will only add to the strength of the club’s appeal – and subsequently improve their bank balance.
In terms of the next month or two; Eddie Howe still wants reinforcements brought in, despite four new arrivals being officially confirmed on Monday. While there is certainly scope for exciting deals, more sales are also expected to bring in additional funds.
In terms of realistic outgoings: Martin Dubravka looks destined for the exit after Newcastle brought in two goalkeepers in the space of 24 hours in the form of Odysseas Vlachodimos and John Ruddy. Kieran Trippier, Callum Wilson and Miguel Almiron all attracted interest in January and are all potential options to depart this time around.
Other squad players such as Sean Longstaff, Matt Targett and Jacob Murphy could all also attract decent fees to bolster the transfer kitty on Tyneside.
Bruno Guimaraes’ £100m release clause has expired and the Magpies aren’t expected to entertain any offers for his services. Chelsea tried their luck with Alexander Isak last week but it is a similar story with the Swede, who is seen as unsellable. Anthony Gordon has attracted interest from Liverpool but Newcastle value him among their most prized assets and won’t want to lose him now their short-term PSR worries have eased.
In terms of the budget between now and the end of the summer, it is impossible to say just how much Howe will be handed to spend as the Newcastle squad gets its biggest revamp since the former Bournemouth boss took the helm.
“The budget? It doesn’t quite work like that these days,” Howe explained earlier this year. “The whole way of trading players has changed. The days of that way are over. It is a case of reacting to what happens and bringing the players with the right characteristics to the club.”
Newcastle are still looking for a new right-winger to complete their forward line, while another central defensive option is also high on the agenda after missing out on Tosin Adarabioyo earlier in the summer.
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