Newcastle expected to pay 'compensation' sum to Eddie Howe after he quits - finance guru

Newcastle United's owners may pay Eddie Howe a compensation package despite it being his decision to quit the club.

That is according to former Manchester City financial adviser Stefan Borson, who exclusively told Football Insider that Newcastle have likely lost money on the change of managers at St James' Park.

Howe's departure came completely out of the blue, just weeks before the new Premier League campaign kicks off, set to be replaced by Matthias Jaissle.

The Magpies will have to pay north of £9million in compensation for the Ah Ahli manager, who will meet up with the team for warm-weather training in Spain.

Supporters would hope that the £9m figure is the only amount being paid to managers this summer, but it is more likely than not that Howe didn't leave empty-handed.

He helped Newcastle break a 70-year trophy drought with the Carabao Cup last year, going down as one of the most iconic figures at St James' Park.

Newcastle United 'felt the need' to pay Eddie Howe compensation

And speaking exclusively to Football Insider, Borson believes that Newcastle likely paid the 48-year-old, despite his decision to step down.

"I don't think it's going to be a money saver net-net because they've obviously got this compensation that they've got to pay off to Saudi Arabia," he said.

"It's both a requirement of the associated party rules but also presumably contractual for that manager.

"A manager coming from Saudi Arabia is probably on salary and cost similar to Eddie Howe, even though Eddie Howe was in the Premier League.

"So I think, net-net, they'll save nothing. They may also have decided that they needed to pay some compensation to Eddie Howe.

"It's always hard to know the exact circumstances, whether he literally walked away from the job or whether there was some kind of settlement."

What do we know about Matthias Jaissle?

Jaissle, the man set to replace Howe at St James' Park, has very little experience at the top level, but it is still very young.

The 38-year-old only has spells with FC Liefering, RB Salzburg, and his current team Al Ahli, coaching the likes of Ivan Toney and Riyad Mahrez.

Across his three first-team spells, Jaissle has yet to dip below a 65 per cent win rate when leaving a club, so that will bode well for the Magpies next season.

The most recent reports suggest that Jaissle will join up with the team on Saturday, 1 August, ahead of signing across the dotted line on his contract.