Finance guru reveals Newcastle FFP status amid £80m transfer news - 'I've seen the numbers'
Newcastle United have scope to spend big this summer but will likely opt for a more conservative approach.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the Magpies’ first summer under the mega-rich PIF regime.
Newcastle have spent close to £120million in 2021-22, with the bulk of that coming in the January window following the takeover three months earlier.
The Athletic reported last Saturday (7 May) that they are likely to spend between £60m and £80m in the upcoming window.
The Premier League’s financial fair play restrictions limit clubs to a £105m loss over a rolling three-year assessment period.
And Plumley explained why the St James’ Park side will need to raise revenue before they match the astronomical spending of fellow petro-dollar-funded side Man City.
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“They are not in a position to do what Man City did a few years ago,” the Sheffield Hallam University expert told Football Insider’s Adam Williams.
“But they do have room to work within FFP because of the way Mike Ashley ran the club.
“We haven’t seen the accounts for 2020-21 but you would expect a loss, although there are some Covid add-backs that you can do.
“Before that, we have seen the number and they had two seasons with a profit and one with a loss. If we look at some of the baseline numbers, that averaged out at a £35m profit.
“That doesn’t account for the recent spend in January but we have to remember that transfer fees are amortised over the course of the contract.
“There are some other allowances in terms of infrastructure, academy and women’s football, which aren’t included. But based on the bottom line, there is a lot of scope there.
“But you can’t just chuck money at it like you used to. Growing commercial revenue is key because you can’t just stick loads of owner equity in.”