Newcastle United would have a budget £280million smaller than Man City if the Premier League votes in new financial regulations after the “explosion”.
That is from finance expert Kieran Maguire, who exclusively told Football Insider that Newcastle will find it harder to break into the top six if new rules are introduced in what will be a crushing new blow.
All 20 Premier League clubs met last week to discuss new financial regulations to replace the current Profit and Sustainability Rules.
The new proposal suggests that clubs would have their spending on transfers, wages and agent fees capped to a percentage of their overall revenue.
All 20 Premier League clubs met last week to discuss new financial regulations to replace the current Profit and Sustainability Rules.
The new proposal suggests that clubs would have their spending on transfers, wages and agent fees capped to a percentage of their overall revenue.
Newcastle increased their revenue by 39 percent up to £250million in their 2022-23 accounts but made an overall loss of £73million.
Man City could spend twice as much as Newcastle United under new Premier League financial rules
Maguire explained that Newcastle would have ‘one hand tied behind their back’ if new financial rules are introduced.
It certainly won’t be any easier to break into the ‘Big Six’ if we do introduce a soft wage cap,” Maguire told Football Insider’s Sean Fisher.
If you take a club such as Manchester City – they generated revenue of £700million.
“As per the 70 percent cap, they would therefore be free to spend £490million.
“Newcastle’s revenue last season was £250million and even if they grew that to £300million this season then that still leaves them with a budget of £210million.
“So Newcastle are effectively saddled with a wage bill which is £280million less than that of City.
Both clubs are trying to compete on the pitch and players will follow the money – and there’s absolutely nothing wrong with that.
So Newcastle would therefore be trying to compete with the existing elite of the Premier League who just happened to be in the right place at the right time when when the Premier League exploded.
“Newcastle would then be doing that with one hand tied behind their back.“
