Kieran Maguire suggests ‘significant’ rule change after Newcastle transfer reveal
Football clubs around the world could benefit if they were forced to adopt a similar transfer payment strategy to Newcastle United.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about a recent statement released by the Magpies on the subject.
The club claimed on 3 September that their preference is to “pay transfer fees up front, rather than spreading payments over several years.”
Newcastle also revealed that they had made an exception to their policy to sign Joe Willock from Arsenal this summer.
The club also responded to accusations of a lack of ambition as they revealed they had a net transfer spend of £120million since summer 2019.
Maguire claims that transfer fee inflation could be suppressed if clubs were required to pay a greater proportion of transfer fees up front.
“There are some cash flow benefits,” he told Football Insider correspondent Adam Williams.
“You have got much tighter control over your budget. You have got no gremlins down the line where you might go and have to pay huge amounts.
“Some clubs’ transfer creditors can max out in outstanding instalments. So there is some merit in taking this approach for Newcastle.
“There is an argument for saying that the football authorities could change the rules.
“You could say you have to put down 50 per cent or 75 per cent of the fee on the day you buy the player.
“It could change football and be significant in slowing down transfer fee inflation.
“It’s quite easy to budget for, but if you have to go and put a down payment on that would reduce inflation in the market.
“But there is no desire for that in the industry at the moment.“
In other news, pundit claims Newcastle United have “horrendous” luck after injury images emerge.