Newcastle United eye Financial Fair Play solution as appointment search launched
Newcastle United have been restricted in their spending since their takeover, but they appear to have a plan that will give them more freedom.
Newcastle United have hatched a plan to overcome their spending restrictions.
It’s no secret the Magpies are now cash rich following their takeover at the hands of the Saudi-backed PIF Investment Fund.
Newcastle have spent significantly since their takeover, racking up a big bill during the January transfer window and continuing their spending this summer.
But their spending has not been anywhere near an extreme level, and especially not in comparison to what they could spend if given totally free rein.
The Magpies have been smart, but they have had to be, and that’s because, like all of their rivals, they are governed by Financial Fair Play regulations.
The FFP rules don’t allow clubs to spend large amounts of money just because they have it, even if they can afford to, and even if they are subject to a big-money takeover.
The rules are designed to protect clubs from financial damage, be it in the short or long-term, and Newcastle have had to tread carefully given their ability to spend big.
Magpies boss Eddie Howe recently said: “We haven’t got the free rein, the free hand that maybe has been perceived in the media, that we can go and sign whoever we want and pay extortionate fees and wages.
“We’re not in that position and I don’t think we will be for some period of time. We’re having to be creative and smart and try to make the right additions with the financial restraints that we have.”
Interestingly, Newcastle have now launched a search for a commercial partnerships manager.
The job advert details a search for someone to manage the ‘acquisition and retention of commercial partners to ensure the club meets challenging new business acquisition and revenue growth targets’.
The reason behind the search is a pretty clear one, with Newcastle’s current spending governed by their level of income.
UEFA FFP rules state clubs cannot exceed spending of £4.2million more than their natural revenue sources over a five-year period, though allowances of £25.3million are made if owners cover 100% of the costs.
As a club who have a recent history in the Championship and at the lower end of the Premier League, Newcastle have not been overly attractive to major sponsorships over recent years.
But given the size of the club, and indeed the new possibilities that have opened up with the new ownership group, they are now likely to attract a higher tier of financers.
This new role will see someone explore those possibilities, and if all goes well, the idea is that the income levels will increase to allow Newcastle more freedom on the transfer front.