Kieran Maguire: Newcastle United revolution to ‘accelerate’ after Premier League HQ talks
Newcastle United will “accelerate” their commercial revolution to ensure that they are in the optimum position to deal with a possible new Premier League wage cap.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the Magpies’ plans to unlock their owners’ extraordinary wealth.
Per The Times on 23 September, a soft wage cap was one of a number of measures discussed at a recent Premier League meeting as part of the so-called New Deal for Football, a restructuring of the English game’s financial affairs.
Uefa are in the process of phasing in a spending cap of their own, with clubs competing in European competition eventually set to be limited to shelling 80 per cent of their income on wages, transfers and agent fees.
Maguire explained how the Tynesiders will ramp up their sponsorship and merchandising programme if the top flight decides to mirror Uefa’s system.
“I suspect Newcastle and their fans will see this as another attempt from the existing elite within the Premier League to create artificial hurdles to slow down the progress of the club,” he told Football Insider’s Adam Williams.
“Newcastle have substantially less commercial income than those clubs who regularly compete in Europe. They don’t have the global fanbase that brings.
“Also, under Mike Ashley, commercial income only went up by three per cent in 14 years. On the plus side, the new owners do appear to have a strategy with regard to their commercial development.
“We could see this particular income stream accelerate. For every £10m they generate, they are probably going to be able to spend £8m in wages if the rules are implemented in a similar way to Uefa.”
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