Premier League eyeing new 'luxury tax' that could turn Newcastle into a real powerhouse

Newcastle United could massively benefit from the potential new Premier League finance rules that are set to be put in place.

According to Mike Keegan of the Daily Mail, Premier League clubs are considering abolishing points deductions and introducing a new American sport style 'luxury tax'.

Eddie Howe's transfer activity has been promptly halted due to restrictions of FFP and the Premier League's Profit and Sustainability Rules (PSR).

However, over fears that the league could lose its credibility as the world's best league, discussions have taken place and the new system could be voted in at the end of the season meeting in June. With 17 of the 20 clubs thought to be onboard with the proposed changes.

The 'luxury tax' considered, would mean that clubs that spend excessively would face a financial punishment. The monies would then be dished out to the clubs who complied with the rules.

An 'emergency fund' to assist at risk EFL clubs has also been discussed.

This seems perfect for Newcastle, who have been financially crippled by the rules currently in place. The club would be free to spend and give the best players the best contracts with fairly little punishment.

A similar tax is in place in the MLB (Baseball) and NBA (Basketball).

Along with these proposed changes, discussions will take place regarding the related-party transactions - deals within multi-club networks. For example, the INEOS owned Nice making deals with Sir Jim Ratcliffe backed Manchester United.

Although nothing has been confirmed, reports suggest that Newcastle were looking for a new affiliate club to send young players to.

Newcastle have also become a new powerhouse when it comes to these meetings. The original 'Big Six' has become a 'Big Seven' due to a 'seismic shift' in relationships between Newcastle and the other six clubs.

This is massive for Newcastle and if this vote is passed, it means the players Newcastle fans only dream of signing could become a reality.