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Newcastle are pleading with the Premier League to change financial rules amid fears they may have to sell some of their star players.
Newcastle were taken over by the Saudi Public Investment Fund in 2021, and since then have spent big on stars including Sandro Tonali, Alexander Isak, Bruno Guimaraes and Anthony Gordon.
While Eddie Howe’s side have not splashed the cash in the same way that Chelsea have over the last few transfer windows, they now find themselves in a position where they are having to slam the breaks on their spending.
That’s because Newcastle are on course to fall short of a key Premier League financial requirement, so they will have to sell players in order to buy more.
Current Premier League rules limit losses to £105 million over three years, but Newcastle have recorded losses of £150 million over the past two years including £73.4 million in the financial year to July 2023.
The Magpies want to discuss a potential rule change with the Premier League, as they believe that the current requirements are stopping them from becoming title contenders and regular Champions League participants.
While Newcastle are compliant with Profit and Sustainability Rules (PSR), they face the prospect of having to sell some valuable assets in order to reinvest in the playing squad.
That raises the question of who could be sold. From an accounting perspective, it makes sense to sell high-value players who cost nothing to bring in, as they represent pure profit.
Sean Longstaff and Lewis Miley would be good examples, as any profit from their sales could be spent on new players but spread over a number of years to create room for other deals.
Other valuable assets like Bruno Guimaraes – who has a £99 million release clause – could be sacrificed as well though.
When asked recently about selling players, Newcastle’s Chief executive Darren Eales said: “It’s difficult to say specifically on certain players, but I can say that if we’re going to get to where we want to get to, at times it is necessary to trade your players. Any decision we make will always be against the backdrop of the medium to long-term benefit for the club.”
Newcastle fans know that they are enjoying the food times, but they likely expected a little more financial freedom when the Saudi PIF bought the club.
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