Kieran Maguire issues £90m reveal as Newcastle United plan confirmed
Kieran Maguire has claimed Newcastle United will only be able to use part of the £70million equity injected into the club on transfers.
Speaking exclusively to Football Insider, the football finance expert explained clubs are restricted to £90million of such investment over three years.
Newcastle confirmed on 9 November that the ownership group has invested a further £70.4million worth of equity into the club.
The investment lifts the owners’ investment to date to over £450million.
Speaking to club media, CEO Darren Eales said the investment is part of a “long-term plan” to have the Magpies competing with the elite clubs in both England and Europe.
When asked by Football Insider if some of the £70million would likely go towards strengthening in the January transfer window, Maguire said:
Click below for exclusive transfer news
“The £70m injection of new equity into Newcastle is going to be for a number of factors.
“The club still has some way to go until it catches up with the sneaky six clubs. Having additional funds from the owners helps in that particular area.
“Not all of that can be allocated for transfer spend because of the nature of financial fair play. It restricts it to £90million over three years.
“Putting cash into the club will allow for the improvement of infrastructure. This is an area that Newcastle have fallen significantly behind in because of Mike Ashley.”