Newcastle to have summer spending power after £70m+ reveal – Stefan Borson
Newcastle United will have more capacity to spend money this summer as a big loss is set to drop out of their profit and sustainability (PSR) calculations.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider the north-east giants will be able to increase their spending, but they can’t go crazy due to the financial restrictions surrounding Premier League clubs.
Newcastle’s £70.7million loss in 2021-22, which was PIF’s first season in charge at St James’ Park, is set to drop out of their PSR calculations next season, potentially allowing them more scope for new signings.
Under the PSR rules, Premier League clubs are only allowed to lose up to £105million over a rolling three-year period.
Eddie Howe’s side were believed to be close to breaching the spending rules in 2023-24, opening up the possibility of a points deduction next season.
But the last-ditch sales of Yankuba Minteh and Elliot Anderson to Brighton and Nottingham Forest as well as the agreement to allow Dan Ashworth to join Manchester United are expected to see them meet their PSR requirements.
Newcastle have more spending capacity after PSR update
Borson believes Newcastle could potentially be busy in the transfer market as they look to improve their squad and challenge for European football again next season.
“After having got through the PSR situation for 2023-24, Newcastle should have a bit more scope to do some business this summer,” Borson told Football Insider.
“The year that’s going to drop out of the PSR calculations was the first year of PIF.
“That means they will have quite a big loss dropping out of the equation, which is good for them. It might be quite busy.
“But they have still got the same issues that most of the teams in that part of the league have got, which is that you can move the revenue if you can get Champions League football by maybe £40-50million.
“But the problem is that your costs go up as well, so to actually make a major difference in terms of your bottom line is quite hard.
“That’s where Newcastle are and it gets worse if you don’t then qualify in the following season.
“They will have more capacity and I can see them spending money this summer, but they can’t go crazy.”
In other news, Newcastle could now accept bids for attacker.
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