How Matthias Jaissle compensation payout will impact Newcastle's finances - Stefan Borson

Matthias Jaissle's compensation figure could represent a "potential issue" for Newcastle United due to being in a settlement agreement.

That is according to former Manchester City financial adviser Stefan Borson, who exclusively told Football Insider that Newcastle's restrictions may have tightened even further this summer.

At the end of June, the Magpies confirmed they had entered into a three-year settlement agreement with UEFA after breaching their Football Earnings Rule.

While the immediate fine was just €3million (£2.6m), any further financial failures would see a suspended €7m (£5.9m) fine come into play.

That is the last thing that Newcastle want right now, right after losing Eddie Howe, but the situation has become even more complicated due to Jaissle's appointment.

The Premier League club must pay a compensation fee of €11m (£9.4m) for the Al Ahli manager, a number that will put a dent in Newcastle's finances.

Newcastle's situation has been 'brewing for a while'

Speaking exclusively to Football Insider, Borson explained that were the fee not budgeted for, the Magpies will be in another tricky situation.

So, in some ways, the fact that they had to pay the compensation off to Saudi Arabia will be a potential issue for some of their compliance," he said.

"It's another £9million out of the pot. And therefore, with the leeway that they have, I think the situation has been brewing for a while.

"It's not impossible that within their budgeting they sort of had a line that said, 'We may need to pay that compensation'.

"If not, clearly, Newcastle are tight on these restrictions just because they're in a settlement agreement.

"So by its very nature, they've got difficult things to comply with, and they've got no Europe next season. So it was always going to be hard."

Eddie Howe may have been paid off too

With Howe deciding to step down from his role at St James' Park, rather than being forced out, Newcastle did not have to buy out his contract.

However, Borson believes that those behind the scenes may have felt inclined to pay the 48-year-old some sort of compensation for all of his hard work.

The former Bournemouth manager did, afterall, end Newcastle's 70-year wait for a trophy when beating Liverpool in the Carabao Cup final.

All good things must come to an end, but it remains to be seen how Jaissle will perform in the Premier League as a young, inexperienced coach.