Newcastle‘s aspirations have changed since the takeover by the Saudi Arabia’s Public Investment Fund (PIF) gave the club a huge financial boost in October 2021. However, that wouldn’t prevent them from selling star players to continue being competitive in the Premier League.
“On any player, at any time, it depends on circumstances. 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,” Newcastle CEO Darren Eales told The Times. “Whether that is because of the contract length of the player in question, the offer is too good to refuse, you need to reload in certain areas, but all of this could make sense to trade that player. It is counterintuitive and part of the inherent system of PSR that there is an incentive to trade your players if you want to reinvest, by the nature of the boundaries.“
The Premier League’s profit and sustainability rules (PSR) state that a team cannot lose more than £105 million across three seasons, which is why Eales suggested the Magpies may have to part with big-name players to comply with those rules.
The club has increased turnover to £250 million since being purchased by the PIF. But it recorded a loss of £73.4 million after tax in its accounts for 2022-23, having already lost £72.9 million the previous year. According to The Times, “those figures will be significantly reduced for PSR through factors such as depreciation, youth development and their academy.”
Lewis Miley of Newcastle United (R) celebrates with teammates after scoring their team’s first goal during the Premier League match between Newcastle United and Fulham FC at St. James Park on December 16, 2023 in Newcastle upon Tyne, England.
The report, however, notes that Newcastle’s turnover increased from £140 million to £250 million after the takeover, while the club’s participation in this season’s UEFA Champions League will see them take home an extra £37m.
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Newcastle’s transfer activity since the takeover
The takeover has allowed Newcastle to count on a bigger budget to build a stronger team and therefore set higher goals. The Magpies, in fact, have so far spent more than £400 million in signings since the first transfer window under the new administration.
The team went all in as soon as it could, landing the likes of Bruno Guimaraes, Chris Wood, and Kieran Trippier in January 2022. The following transfer window saw an even more ambitious club, with Alexander Isak, Sven Botman, and Nick Pope among the many summer signings at St. James’ Park.
Ahead of their first Champions League campaign in 20 years, Newcastle continued to fork out millions as they recruited Sandro Tonali, Harvey Barnes, and Tino Livramento.
