Newcastle United free to spend Saudi billions under new rules – Kieran Maguire
The owners at Newcastle United could put “rocket boosters” on their transfer budget if the Premier League votes in a new luxury tax.
That is the view of finance expert Kieran Maguire, who spoke exclusively to Football Insider about the impact new regulations would have at St James’ Park.
As reported by the Daily Mail, the Premier League are considering abolishing points deductions in favour of a luxury tax.
Under the new model, top-flight clubs could choose to continue spending beyond limitations at the cost of a tax that would be spread to other clubs in the division.
Newcastle’s Saudi Arabian owners – PiF – are estimated to have a value of over £600billion and would be free to spend well beyond current PSR limits if the rules were introduced.
Newcastle United can unlock Saudi wealth under new PL rules
Maguire explained that it is “harsh” that Newcastle are not allowed to spend as much as Chelsea and Manchester City following their takeovers and therefore the luxury tax would be welcomed at Tyneside.
“One of the complaints coming from Newcastle fans is that Chelsea were allowed to spend as much money as they wanted under Roman Abramovich when he first arrived,” Maguire told Football Insider’s Sean Fisher.
“The same was true with regards to Sheikh Mansour and Manchester City.
“It seems harsh that Newcastle are being penalised for being in the same situation but at the wrong time compared to those two other clubs.
“So the new luxury tax proposal would give Newcastle’s owners the capacity to put rocket boosters on their budget.
“A lot would depend upon whether they felt that the rate of tax is worth paying – and that is the crux of the issue for me.“
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