Newcastle’s ‘superb’ business hailed by expert as Longstaff nears Leeds move’
Newcastle United could have significant funds remaining to spend should Sean Longstaff’s move to Leeds United go through this summer.
While PSR is not currently seen as an issue for the Magpies, Nottingham Forest and Newcastle can expect a fine from UEFA for breaching the earnings cap, and finances are always a focus at St James’ Park.
Eddie Howe’s side appear to be closing in on a £55million deal for Anthony Elanga, and with failed transfers for Jarell Quansah, Joao Pedro, and Marc Guehi, the transfer ambition is clear for all to see.
However, as is the case for many clubs in the Premier League, if several signings are to be made during a summer transfer window, space in the squad and funds need to be made available.
Football Insider understood as recently as last month that a £10million offer from Leeds would be accepted for Longstaff, and football finance expert Professor Rob Wilson has explained the brilliance behind this potential deal.
Newcastle United praised over Sean Longstaff business
Speaking to iNews (8 July), Wilson, also a programme director at the University Campus of Football Business, said: “If the Longstaff sale happens, it’s actually a superb bit of business for Newcastle in their position.
“As an academy product, Longstaff would represent ‘pure profit’ for profitability and sustainability rules purposes, so that adds another £10m onto their PSR calculations.
“Given the way amortisation works, that’s enabling you to buy a £50m player on a five-year contract,” with the deal essentially paying for the Magpies’ purchase of Nottingham Forest’s Anthony Elanga.
With it being understood that player trading is pivotal for the club, Wilson continued: “In layman’s terms, they’ve paid for the first year’s amortisation charge for Anthony Elanga in the blink of an eye.
“Selling Longstaff, even at that price, would mean their PSR ‘headroom’ is untouched and they can continue to invest in the squad. If they had £150m to spend before these two deals, they would still have that.”
Eddie Howe to continue squad overhaul ahead of 2025/26
Football Insider verdict
The 2024/25 season showed just how capable the current squad is, but having claimed the EFL Cup and a top-five Premier League finish, it also showcased how much more the players can achieve.
With a number of suitable signings, the team could have a real chance of putting a run together in next season’s Champions League, as well as fighting to push further up the league table.
While Football Insider understands that Newcastle target Guehi could join Liverpool on a cash-only deal, there is plenty of time remaining for Howe’s side to get more business done.
Understandably, supporters have been underwhelmed by the signing of Antonio Cordero on a free transfer from Malaga last month, and many have been frustrated by the missed transfers.
Finally capturing Elanga’s signature should mark the start of an exciting summer transfer window for the Magpies, and if Howe has his way, all current stars should stay at St James’ Park.
The former Bournemouth figure will believe in the project he is building with Newcastle, and hopefully, those elsewhere in Europe will also be fascinated by the project this summer.