Newcastle United get big financial boost after £71m reveal – sources
Losses of £71million suffered by Newcastle United in the 2021-22 season are set to drop out of their PSR calculations from July onwards, sources have told Football Insider.
The current Profit and Sustainability Rules state that top-flight clubs can lose a maximum of £105million over a rolling three-year period.
The Tyneside club announced significant losses of £70.7million over 2021-22 – their first financial accounts since their Saudi Arabian-backed takeover.
The heavy losses suffered in that season subsequently limited the amount of money that could be invested by the club as it put them at risk of breaching regulations and potentially facing a points deduction.
However, June 30th is the cut-off date for the PSR accounting period, meaning the losses from 2021-22 will not be considered in their three-year calculations.
Newcastle United given transfer boost after £71m PSR news
Sources have told Football Insider that the change in accounting periods will give Newcastle much more flexibility to spend and invest over the transfer window.
As a result, Newcastle fans can expect the majority of new signings to be completed after the June cut-off date.
Senior figures at Newcastle will still be cautious about their spending because of their £73million loss in 2022-23, but a successful 2023-24 campaign which includes revenue from their Champions League campaign is expected to balance the books.
Their budget could also hinge on the club’s participation in Europe, which will be decided by this weekend’s FA Cup final.
Newcastle will qualify for the Europa Conference League in 2024-25 unless Erik ten Hag’s side come out on top at Wembley.
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