Newcastle United’s financial security is beyond doubt, however, there are still financial risks at play for the club.
Newcastle United manager Eddie Howe has reiterated the importance of the Magpies complying with Financial Fair Play (FFP) regulations.
Howe is keen to get more business done this summer. Newcastle have already splashed out to bring the likes of Sandro Tonali and Harvey Barnes to St James’ Park, but there could well be more arrivals in the pipeline. However, Howe is conscious of the club’s responsibility to use their funds within FFP regulations.
As quoted by Chronicle Live, when discussing how many more players the Tyneside outfit might sign this summer, Howe said: “A number is difficult. As soon as I say that, we put ourselves under more pressure. I hope we can do more business. I think we need to…not loads of players coming through the door because we don’t have the ability financially to do that because of FFP. Hopefully it will be quality over quantity!”
With Manchester City already being investigated for potential breaches of FFP guidelines, Newcastle will be on high alert over the issue, and will be keen to avoid a similar fate.
Fans will also want to see the club’s transfer kitty being used wisely. They will be encouraged by Howe’s insistence on wanting to strengthen the squad even further. If Newcastle are to maintain their progress in Premier League terms, whilst competing in the Champions League this season, then strength in depth will be crucial.
What is Financial Fair Play?
FFP guidelines are set out by UEFA, and are designed to prevent clubs spending excessively beyond what they are able to generate. The intention is to stop clubs simply buying their way to success unfairly, or spending their way into financial trouble. How effective these measures are in preventing either of those outcomes is open to debate. There are also ways that these rules can be worked around. A common method is by paying off transfer fees over an extended number of years.
There can be financial sanctions, and potentially even harsher punishments, for clubs that fail to comply. Newcastle therefore need to be conscious of Howe’s warning and conduct their transfer business accordingly. This could even lead to the Magpies being forced to make player sales to ensure they can balance their books appropriately.
Receive a digest of our best Newcastle content each week direct to your mailbox
