Newcastle United have ‘trump card’ to combat £146m FFP black hole as deadline looms

Newcastle United CEO Darren EalesNewcastle United CEO Darren Eales
Newcastle United CEO Darren Eales | Getty Images
Newcastle United face a headache when it comes to balancing their books this summer

Champions League qualification and enhanced sponsorship deals will keep Newcastle United within touching distance of FFP/PSR safety.

Sky Sports reported that six Premier League sides face selling players before the June 30 deadline. Clubs have until this date to fall in line with the permitted £105million lost over a three-year period.

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Newcastle, Chelsea, Aston Villa, Everton, Nottingham Forest and Leicester City were named as clubs facing difficulty. As it stands, the Magpies are £146million is the red for the two years leading up to June 2023.

But commercial agreements like the £40million per year Adidas deal or the £25million Sela sponsorship have not been accounted for. Add in prize and TV money for Champions League football and Newcastle’s position is not as perilous as first feared.

CEO Darren Eales revealed earlier this year that the Magpies may need to offload players before going again in the transfer market. Football financial expert Kieran Maguire expects Newcastle to be in a “slightly more advantageous” position than other Premier League clubs - as they boast a trump card.

"Under former owner Mike Ashley, Newcastle were run as a sustainable club off the pitch but not a competitive one on it,” he told Sky Sports. “The new owners have changed that business model and invested large sums in players, which has come at a significant financial loss of £146million in the two years to June 2023.

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"This means that Newcastle were relatively cautious in the transfer market this season. The club have always stated that they were fully behind the PSR rules and intended to comply with the cost constraints. 

“Participation in the Champions League and new shirt sponsor deals will have helped boost revenues, meaning Newcastle may be in a slightly more advantageous position compared to their peer group.”

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