Finance expert says Newcastle set for £70m PSR boost but must still be careful in transfer market
Newcastle United believe they narrowly avoided a points deduction with the sales of Yankuba Minteh and Elliot Anderson on the mini-deadline day that was June 30th as the new PSR reporting year kicked in.
We'll not know for sure for a few months, but the belief is that those sales combined with the money received from Manchester United for Dan Ashworth will see the club avoid sanctions.
Now that we are in a new reporting year, football finance expert Stefan Borson has told Football Insider that the Magpies will have a £70million loss fall off their three-year rolling reporting period.
The first year of the PIF's ownership in which the club made a £70million loss will no longer be part of the reporting period for Newcastle.
Newcastle will spend but can't go crazy
Despite that, however, Stefan Borson has said that while Newcastle fans can see that as a positive, they should be aware that it doesn't mean the club can go crazy in the transfer market.
“After having got through the PSR situation for 2023-24, Newcastle should have a bit more scope to do some business this summer.
“The year that’s going to drop out of the PSR calculations was the first year of PIF. That means they will have quite a big loss dropping out of the equation, which is good for them. It might be quite busy.
“But they have still got the same issues that most of the teams in that part of the league have got, which is that you can move the revenue if you can get Champions League football by maybe £40-50million. But the problem is that your costs go up as well, so to actually make a major difference in terms of your bottom line is quite hard.
“That’s where Newcastle are and it gets worse if you don’t then qualify in the following season. They will have more capacity and I can see them spending money this summer, but they can’t go crazy.”
Next week is when we expect things to get interesting
The Newcastle United board are meeting over a three-day period at Alnwick Castle this upcoming weekend and we expect Paul Mitchell will be around for at least one of those days to discuss transfer strategy and targets.
It's with that in mind that we expect things to kick up a gear next week with more new names entering the frame and perhaps some actual new players starting to come into the club.
That should plug the gap between the end of Euro 2024 on Sunday and the start of pre-season.
