Newcastle is the richest team in the world with almost no bottom from the owners of Saudi Arabia. However, how they choose to spend money to avoid being affected by the Financial Fairness Act (FFP) is a completely different matter.
When buying Anthony Gordon from Everton in the winter transfer window for £45 million, Newcastle were in the spotlight of the FFP. So why do they still want to play big in the upcoming player market?
UEFA's rules for FFP until 2025 are very clear, a team is only allowed to spend on transfers, including player purchase fees, salaries, and hand-to-hand fees for agents that do not exceed 70% of total revenue. Teams are only allowed to lose €60 million for three consecutive years. If UEFA determines which team is capable of earning good revenue, they will allow that team to owe an additional 10 million Euros/year.
Since the Arabian authorities bought Newcastle in October 2021, the team has lost about 75 million Euros.
Newcastle are recording the above spending at 90% of revenue, including compensation for Steve Bruce and his former team. In addition, the team also has to pay additional fees for players who are no longer at St. Petersburg Stadium. James' Park such as lending, contract compensation, non-contractual money,...
£250 million is the amount Newcastle has spent in the last 3 transfer sessions. Captain Eddie Howe is looking for the board to provide money to buy 4 "good" players to serve the European Cup arena next season. The estimated amount of money spent is not small.
Newcastle has yet to announce a new shirt sponsor for the team next season. The Magpies' leadership wants to know whether they will play in the Champions League or Europa League.
Chelsea, Tottenham, Liverpool and Arsenal will receive around £40 million/year/house for shirt sponsorship when participating in the Champions League. Newcastle are expected to be in the same situation. Newcastle's current deal with bookmaking firm Fun88 earns less than £10 million/year.
However, if they are unlucky to only play in the Europa League, according to the team's Director Markerting - Peter Silverstone, the £40 million level can still be met. The reason is that Newcastle is one of the most watched teams on television in England. After reaching the League Cup final against Man United, this number has been recorded at an impressive level.
Silverstones expects Newcastle's revenue to increase rapidly in the next 24 months as Saudi Arabian airlines are planning to provide major sponsorship for the Tyneside club.
UEFA's "allowing" clubs to owe up to 60 million Euros/3 years is a condition for Newcastle to stick to, thereby calculating spending and allocating costs appropriately. Maybe, the team's leadership has considered the loss in the 2023-2024 season, but the profit goal is also set in parallel in the following seasons.
Newcastle are expected to spend around £150 million/transfer. However, this number may only be accumulated each summer and not spread over 2 sessions of each season. Therefore, playing in the Champions League will help Newcastle have a lot more money to add to the transfer fund.
In addition to buying, of course selling players is also considered. Newcastle are planning to liquidate no less than 10 players in the first team to make room for new players. In the short, medium and long term, they should also consider how many years a new home buyer can be useful for.
