Newcastle United reportedly look to have been handed a major financial boost for the upcoming summer transfer window.
Having guided the Magpies to glory in the Carabao Cup, as well as sealing Champions League qualification again, Eddie Howe has undoubtedly done a superb job at the club.
As a result of that, a football finance expert has explained to Geordie Boot Boys that it now looks like this will afford Newcastle a lot more freedom to spend on new signings this summer.
Adam Williams has discussed Newcastle’s financial situation, explaining that this could land them a revenue of £400m.
It remains to be seen precisely what this will mean in terms of Howe’s budget for the upcoming window, but it can surely only be a big positive.
Eddie Howe with his Newcastle players (Photo by Stu Forster/Getty Images)
Newcastle’s financial boost revealed ahead of summer transfer window
“Since PIF bought Newcastle, the accounts show that the club has paid out nearly £600m in wages,” Williams told Geordie Boot Boys.
“We don’t have the figures for 2024-25 yet, but I’d expect that to hit nearly £800m once that data is available. As a percentage of revenue, their wage bill in 2023-24 was actually mid-table at 68 per cent.
“Their amortisation, however, which is how clubs account for transfer fees over a period of time, was towards the higher end. That meant they didn’t have huge room for manoeuvre as far as PSR is concerned.
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“But from 1 July, we’ll be in a new PSR assessment window. The significance for Newcastle is that the £73m loss they posted in 2022-23 will then no longer be part of the equation. That’s a game-changer.
“And thanks to Champions League qualification and the retail boom sparked by the League Cup triumph, Newcastle’s revenue could hit £400m next season.”
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