Kieran Maguire: Newcastle United will support new financial rules after triple deal agreed
Newcastle United will view the new Premier League financial rules as an opportunity to increase their transfer budget thanks to their growing revenue.
That is the view of finance expert Kieran Maguire, who exclusively told Football Insider that Newcastle’s recent deals with Adidas, Sela and Noon will help to boost their revenue figures.
Premier League clubs voted to introduce new financial regulations this month that mirror the rules in place under Uefa.
Club spending on wages, transfer fees and agent fees will be capped at 85 percent of their overall revenue – Uefa caps spending at 70 percent meaning clubs competing in Europe must reduce spending further.
Newcastle announced revenue of £250million in their latest 2022-23 accounts and commercial deals with Adidas, Sela and Noon will help the Tyneside outfit to continue their financial growth.
Newcastle will support new rules to increase transfer budget
Maguire explained that Newcastle will view the new regulations as the “least worst” option available to them.
“I think ambitious and aspirational clubs such as Newcastle United or Aston Villa will see the new financial rules as an opportunity,” Maguire told Football Insider’s Sean Fisher.
“It’s a chance for the club to increase revenue and on the back of that they can increase transfer spend.
“Newcastle have signed the deals with Adidas, Sela, Noon and also enhanced the club’s position in terms of commercial partners in the Middle East area.
“They’re fully aware that for every extra £100 that they generate they can add an extra £70 into their spending pot – or £85 if they’re not in Uefa competition.
“So I suspect that Newcastle will have viewed these proposed changes as the least worst option.
“Newcastle will want to be in Europe on a regular basis and will therefore have to comply with Uefa financial rules – so they might as well replicate them in the Premier League to have to deal with only one set of regulations.“
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