Newcastle hit by huge Man City blow after PL ‘explodes’

Redaction Willow Austin with Kieran Maguire
Published on 2024-02-13 18:00:00

Newcastle United is facing potential budget constraints as the Premier League considers new financial regulations. According to Kieran Maguire, a finance expert who spoke exclusively to Football Insider, the proposed rules could leave Newcastle with a budget £280 million smaller than that of Manchester City, making it harder for them to compete with the top six clubs in the Premier League.

The new regulations are being discussed as a replacement for the current Profit and Sustainability Rules. Under the proposed rules, clubs would have their spending on transfers, wages, and agent fees capped to a percentage of their overall revenue.

In their 2022-23 accounts, Newcastle reported a 39 percent increase in revenue to £250 million but made an overall loss of £73 million. Maguire explained that under the proposed 70 percent cap, Manchester City, with a revenue of £700 million, would be free to spend £490 million, while Newcastle, with a revenue of £250 million, would be left with a budget of £210 million, effectively tying their hands behind their back in comparison to City.

Maguire emphasized that the financial gap would make it more challenging for Newcastle to compete with the elite Premier League clubs. He argued that players will follow the money, and with Newcastle having significantly less budget compared to other top clubs, they would be at a disadvantage.

The finance expert’s comments bring into perspective the potential impact of the proposed financial regulations on Newcastle United’s ability to compete with the Premier League’s top clubs. As discussions around these regulations continue, it remains to be seen how they will affect the dynamics of the league and the competitiveness of clubs.

Read Original article on Football Insider