Finance guru: Newcastle United to bank £210m transfer kitty – ‘I’ve heard rumours’
Newcastle United could spend around £210million of a possible £300m stadium naming rights deal on new signings.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the interplay between the Magpies’ commercial and recruitment ambitions.
Industry sources told Football Insider on Tuesday (25 October) that the Magpies could bank up to £30m annually from a 10-year sponsorship deal for their 52,000-capacity stadium.
Front-of-shirt and training ground sponsorship privileges could also be included in the package.
Because of the Premier League’s profit and sustainability laws, Newcastle must boost their income before they can spend at a level that reflects their Saudi owners’ lofty ambitions.
The current FFP system allows clubs to lose up to £105million over a rolling three-year period as long as £90m is covered by owners.
But UEFA are set to introduce a new system limiting clubs to spending 70 per cent of turnover on wages, transfers and agent fees, with the Premier League expected to roll out a similar framework.
This would allow the Tynesiders to spend approximately 70 per cent of the cash generated by a sponsorship deal for St. James’ Park in the transfer market, suggests Plumley.
“It’s a huge boost,” the Sheffield Hallam University expert told Football Insider’s Adam Williams.
“I’ve heard rumours that it’s a 10-year deal. This is a significant amount of money over the long term.
“I think, even if you map this out against Uefa’s new FFP guidelines, which are a 70 per cent wages-to-turnover cost, this is still £21m you can commit off the back of this. That is before you take any other commercial deals into account.
“I’m not necessarily saying they would spend those numbers but that’s the boost it could influence the transfer market for Newcastle.
“I think it will be a slow-and-steady approach. I don’t think they will spend big every single window. But certainly, if you’re signing £30m-a-year naming rights deal and you can commit a certain percentage“
In other news, pundit suggests Newcastle United will beat Arsenal to Mykhaylo Mudryk signing after source’s reveal.