Kieran Maguire warns Newcastle United over Uefa fine as FFP development explained
Newcastle United must have a spending strategy in place so that they do not break Uefa’s Financial Fair Play rules when they do eventually qualify for European competition.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the new revenue-based spending controls.
Clubs competing in European competitions were previously allowed to lose no more than £25m over a rolling three-year assessment period.
But the new system limits clubs to spending no more than 70 per cent of their turnover on wages, transfers and agent fees.
Uefa announced earlier this year (7 April) that the revenue-based model would be phased in from June.
The Premier League has its own distinct spending quotas, which currently allow clubs to lose £105m over a three-year period.
And Maguire warns the mega-rich Magpies not to overspend in their bid to climb the table, which would come with a fine from Uefa once they qualify for Europe.
“Newcastle will be strategising with regards to the new rules,” he told Football Insider’s Adam Williams.
“The last thing they can afford to do is accelerate, accelerate, brake.
“Wolves, for example, were very successful in their first season in the Premier League and qualified for the Europa League. They were within the Premier League limit but they breached the Uefa limit.
“Newcastle don’t want to have to start having to sell players or curtail recruitment in areas they have identified to be critical because they have overspent trying to get into Europe.
“There will be an overall strategy and this is where people like Dan Ashworth come to the fore.”
In other news, pundit tells Newcastle United to sign Matt Targett “upgrade” after £35m update.