‘Signing Phillips for £60m on a four-year deal’ – Kieran Maguire drops Newcastle verdict
It would not be “reckless” for Newcastle United to pay a £7.5million loan fee for Kalvin Phillips despite the club’s FFP limits.
That is the view of finance expert Kieran Maguire, who exclusively told Football Insider that the loan deal is equivalent to Newcastle signing Phillips for £60million over a four-year deal.
Ever since his £45million move to Man City in the summer of 2022, Phillips has struggled to settle down at the Etihad Stadium.
He has made just 31 appearances for the Manchester club during his 18-month stay.
As revealed by Football Insider on Tuesday (26 December), Newcastle and Juventus are the frontrunners to sign Phillips on loan this January after City demanded a £7.5million loan fee last summer to take him for the season.
The Tyneside club have had to turn to the loan market to bring in new signings next month as they are close to breaching Financial Fair Play rules.
Maguire believes that Phillips’ fee will be worthwhile if his arrival at St James’ Park helps Newcastle to qualify for the Champions League.
“I don’t think it’s a reckless deal for Newcastle to make,” Maguire told Football Insider’s Sean Fisher.
“Newcastle’s focus will be on achieving a top four position and cheering on English clubs in Europe to try and release that fifth spot for the Champions League.
“If it turns out that Phillips makes a difference and Newcastle achieve a position where they get European football, then it pays for itself.
“As for Newcastle’s FFP status, there is an element of wriggle room for them in January and we also have to look at the exit door.
“All of the focus has been on the club signings, whereas the whole point about having a player trading model means that sales are also likely.
“So I don’t see a £7.5million fee as excessive.
“It’s the equivalent of signing Phillips for £60million on a four-year deal, except they’re only committing themselves for six months.“
In other news, Newcastle United to terminate 28-year-old’s deal – he’s set to join English club in January