'Excited' - Newcastle United CEO reacts to latest summer recruit as 'phenomenal' £300m claim made

Mitchell was appointed as the club’s new sporting director earlier this month, replacing Dan Ashworth following his move to Manchester United. But unlike Ashworth, Mitchell has been given the license to have a more hands on approach in terms of recruitment.

The former Southampton, Tottenham Hotspur, RB Leipzig and Monaco chief has a proven track record, bringing in stellar names such as Sadio Mane, Son Heung-min, Dele Alli and Christopher Nkunku. And Eales is excited by the prospect of Mitchell repeating that success on Tyneside while backing Howe to get the best out of his squad.

Eales told reporters: “We’re really excited. For us as we go on the journey as Newcastle United, as you know we’ve got high ambitions and want to try and improve year on year. 

“From the discussions we had with ownership and with Eddie when you get a chance to change you have a look and say ‘Well what do you want to focus on in this role?’ I think there were some crucial factors – firstly recruitment. 90% of the role is recruitment, that’s the easiest way you can have an impact on the team.

“Someone with a strong recruitment background was essential. Having that Premier League experience with Paul being at Southampton, obviously our paths crossed at Tottenham Hotspur as well but then also having that global sense of Paul being at Monaco and at RB Leipzig as global technical director. Increasingly this role is so important because in collaboration, Paul with Eddie… we’ve seen it, almost with FFP it’s like having a salary cap because there’s a certain amount you can spend.

“At Newcastle United we will always spend to the maximum available headroom. There’s never a doubt, never a question we won’t put the resources in. So then it is: how do you maximise those resources? What that means is every decision has an impact and that’s everything from ‘can you loan a player out who is on the fringes and get a return on that?’ That helps you have more powder in your keg to put that team out there for Eddie.

“What I’m excited about is those two working together to maximise the availability of resources for Eddie on the pitch. We know what an amazing coach Eddie is and what he can do for those players when he gets them. We’ve seen him with a player like Anthony Gordon, watching him, seeing how he’s improved in his 18 months at the club. It’s going to be a great partnership.”

Newcastle enter the remaining six weeks of the summer transfer window in much stronger financial position, a huge contrast to the feeling almost three weeks ago when they rushed to sell Elliot Anderson and Yankuba Minteh just hours before the Premier League Profitability and Sustainability (PSR) accounting deadline on June 30.

PSR is monitored over a three-year rolling cycle, allowing clubs to make a £105m loss. For United, the £70m loss of the first year post-takeover has dropped off the accounts while turnover has increased significantly to as high as £300m.

Eales added: “I do think we have the ability to strengthen the squad but I think this is where… I wouldn't say new era as I think it’s a little bit different. I liken it to when I was out in the States and we had a strict salary cap. In effect, FFP now has created a salary cap and what I mean by that is there is a certain maximum allowance of headroom that you can spend based on your revenues over a three-year projection and that includes things like player sales on profit and disposal so actually every decision you make has a knock-on impact.

“Perhaps in the, I call it the olden days, where we need three players that will help the squad but it’s not about that. It could be that we need to bring some depth, and I’m just using this hypothetically, in at left-back and what you spend in acquiring that player has a knock-on impact in other areas.

“That’s where we’re trying to be much more focused on. How can we efficiently spend more than circumspect? Yes, that means we want to strengthen but that doesn’t mean ‘we’ve got X amount, let’s go and spend it on one or two players’. What is the most effective way for us to use that to strengthen our team? Is it on depth? Is it on a first-team player that is going to impact the first XI? Those are the discussions and decisions we have to be really efficient at going forward because we have this ambition, we want to be competing in the top six and for trophies consistently.

“Our revenues have been rising and it’s been incredible to see. Turnover from £140million to £180m to £250m, this past financial year will be north of £300m so that’s over 30% compound annual growth which is a phenomenal rate but we’re still behind the big six so we know that if we’re going to be competing and punching above our weight, how we use our resources is really important.

“That’s why it is not as simple as saying ‘well you’ve got X amount so you’re going to go and spend it on one or three players’, the job now with Paul and Eddie working together is, how can we use those resources to strengthen the squad going forwards?”