Since the Saudi Arabian-led takeover in October 2021, you could be forgiven for expecting Newcastle United to be among the world’s biggest spenders in every transfer window.
The reality, however, has been quite different.
Under the Premier League’s Profit and Sustainability Rules (PSR) – formerly Financial Fair Play (FFP) – clubs are only allowed to make losses of £105m over a rolling three-year period and must spend what they earn beyond that.
With Newcastle’s growth on the pitch far exceeding that off it, there was always going to come a point where these financial restrictions would curb the club’s desire to spend.
This month, it has been player sales, rather than incoming transfers, that have been the focus. BBC Sport takes a look at why.
Newcastle chief executive, Darren Eales, gave an interview to the club’s in-house media channels at the start of the month. In it, he announced a 40% growth in revenue for a second successive year thanks to sponsorship deals with companies such as Sela and Noon, Champions League qualification and an impending shirt manufacturing deal with Adidas.
But there was also a £73.4m loss recorded, and Eales directly addressed the suggestion that player sales will be considered in the next phase of the project.
“On any player, at any time, it depends on circumstances,” he said. “Any decision we make will always be against the backdrop of the medium- to long-term benefit for the club.
“It’s difficult to say specifically on certain players, but I can say that if we’re going to get to where we want to get to, at times it is necessary to trade your players.”
Newcastle have only sold Allan Saint-Maximin [£25m) and Chris Wood [£15m] for any impactful fee under the current owners. The fact the club were deep in a relegation battle just two years ago suggests existing value in the squad was low, accelerating talk of a player signed under the Public Investment Fund’s stewardship needing to be sacrificed.
Brazil midfielder Bruno Guimaraes joined from Lyon for £40m in January 2022, before defender Sven Botman and Alexander Isak signed for £32m and £63m respectively the following summer. They, alongside last winter’s £40m acquisition Anthony Gordon, are Newcastle’s most ambitious signings to date, but also their best possibility for an immediate profit.
Reaching the Champions League last season accelerated development more than expected. Suddenly, to maintain their position, they need to shop in markets their financial reality is not ready for. While their revenue for 2023 stands at £250m, it is still some way behind Tottenham’s recording from a year earlier of £444m. Clubs like Manchester City and Manchester United are further ahead.
For all the wealth of their ownership, Newcastle have a gap to close off the pitch. Selling Guimaraes or Isak would be the quickest way to help do that but, with the club sitting 10th in the Premier League and 14 points off the top four, it would make competing in the top flight much tougher.
