Finance guru: Newcastle ready to spend ‘infinite resources’ as new FFP ploy explained
Newcastle United are ready to spend infinite resources on their academy in order to boost their long-term financial fair play standing.
So says finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about how PIF will navigate new Uefa spending controls.
Newcastle became the richest club in the world following PIF’s £305million takeover in October last year.
But FFP limits prevent them from spending freely, and Uefa’s new revenue-based system is set to be even more restrictive for aspirational clubs.
As reported by iNews last Thursday (21 April), PIF are planning to invest heavily in the Magpies’ academy and improve their transfer sales strategy.
Plumley insists that it is smart to pump money into the youth production line given that academy costs are exempt from FFP.
“The new FFP regulations are going to favour the bigger clubs,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“In the short term, there might be changes in what you can pull off in terms of transfers. So, building for the long term is a vital business strategy.
“Talent identification and development is a big part of that. You can also offset those players against FFP in terms of the regulations.
“It’s a viable business strategy wherever you are in the league system, but Newcastle are fortune to have infinite financial resources to throw at it.”
Newcastle spent close to £90m on new arrivals in January.
The recruitment flurry was a success, with Eddie Howe’s side now perched comfortably in 11th place in the Premier League.
In other news, Ivan Toney tipped by pundit to fire Newcastle United to Europe after £30m reveal.