Kieran Maguire: Newcastle in line for astonishing '£205m' January signing spree
The new regime at Newcastle United could comfortably splash out an astonishing £205million on signings in the current financial fair play cycle – and that could all be in January.
That is the view of finance expert Kieran Maguire, speaking exclusively to Football Insider about the momentous developments at St James’ Park.
The long-running takeover epic reached its dramatic climax on 7 October as the Premier League gave the nod to a PCP Capital Partners buyout.
The Saudi Arabia Public Investment Fund, which has assets and reserves totalling £315billion, has an 80 per cent stake in PCP.
And Maguire anticipates that the Magpies’ transfer budget will be immediately flushed with cash.
He told Football Insider correspondent Adam Williams: “The paradox of Mike Ashley is that the way he has run the club has been profitable.
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“Ashley’s stinginess and lack of investment mean the new owners can really start to go through the gears.
“The FFP limit is a £105m loss over three years. Based on my calculations the new owners are buying a club that has had an FFP profit of around £100m.
“If you factor those things together, there is the potential for a £205m spend.
“They won’t be able to write a blank cheque in terms of recruitment, but they will be able to fish in a completely different pool.
“There isn’t any reason why this spending can’t be immediate, ready for January. Newcastle are in a very strong position.
“And, because of the way amortisation works, if you spend £200m on players and sign them on five-year contracts, it works out as £40m-a-year.“