Finance guru: Newcastle's dream just got 'so much harder' after official Uefa reveal
Newcastle United will find it “much harder” to break into the European elite after the introduction of new financial sustainability regulations.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the now-confirmed financial fair play overhaul.
Uefa announced last Thursday (7 April) that clubs must now spend 70 per cent or less of their total revenue on transfers, agent fees and wages.
The rules, which apply to all clubs competing in Uefa competitions, will be phased in from the start of 2022-23.
Permitted losses have also been doubled to £50million over Uefa’s rolling three-year assessment period.
Newcastle became the world’s richest club following the Saudi Public Investment Fund’s £305million takeover in October last year.
Subscribe to Football Insider TV now
But Plumley warns that the new owners’ eye-watering wealth will not be able to automatically override Uefa’s new spending controls.
“All the evidence that I’ve been involved in, in terms of research through the university, suggests that it is going to be harder to break the glass ceiling,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“I’ve often said that one of the downsides to FFP is that you’re keeping the big clubs at the top if you focus on the break-even principle.
“They are opening the door a little bit with the permitted losses being higher than they have ever been.
“But the new regs also effectively cap spending. Big clubs will be able to spend more, so they’re always going to be in a preferential place under these rules.
“In the short to medium term, you are just reinforcing that closed shop of the European elite.
“They are also thinking about giving out Champions League spots based on historical performance.
“So, when you look at all those things together, I think it’s going to be so much harder for Newcastle to break into the elite.
“For a club like them, it’s not impossible but it will take more time to catch the rest.”
It looks increasingly likely that Newcastle will remain in the Premier League this season, giving PIF greater pulling power in the transfer market.
Eddie Howe’s side are now 12 points outside the bottom three following last Friday’s (8 April) 1-0 win over Wolves.