Newcastle United will spend again in the summer transfer window. Still, the club’s owners are keen to comply with new financial regulations introduced by UEFA as they look to increase revenue streams.
Newcastle United’s hope to secure the ‘best’ sponsorship deals will be critical after UEFA introduces new financial regulations.
The UEFA executive committee approved new financial sustainability regulations at a meeting in Nyon last week in the first significant reform of the rules since they were first introduced in 2010 to prevent clubs from spending beyond their means.
Clubs are now allowed to make losses of £49.96m (€60m) over three years, as opposed to £24.98m (€30m), but the impact of the new squad cost rule will, perhaps, be felt the most. This will eventually limit the amount spent on wages, transfers, and agents fees to 70% of club revenue.
The new regulations will be effective in June, but they will be gradually implemented over three years to give clubs time to adapt so, in theory, clubs will be able to spend 90% of income in 2023-24, 80% in 2024-25 and, then, 70% a year later.
Assessments will be performed on a timely basis, and UEFA confirmed that any breaches would lead to ‘pre-defined financial penalties and sporting measures.’
Although Newcastle is not currently playing in Europe, the club’s owners are keen to comply with the new regulations, as they were with the previous set of rules.
The hierarchy wants to create a sustainable club ultimately. So as well as producing their players in the long-term, the powers at be are keen to increase revenue streams through sponsorship deals.
Amanda Staveley has vowed that ‘we are going to get the best deals the club needs’ when the Magpies are running at about 65% when it comes to wages to turnover, which even the part-owner felt was ‘probably too high.’
So while no one left the club permanently in the owners’ first window in charge, last January, players will be sold during a busy summer trading period in an effort to make room for new arrivals.