Newcastle United have been held back by PSR in recent years.
The Magpies felt the blows of it in the last year especially, the January transfer window made it three without a signing for the starting XI, with several players leaving in the meantime.
Last summer, PSR forced Newcastle to sell Elliot Anderson and Yankuba Minteh, the Magpies picked up around £69m from their sales but the consequences have come back to haunt them, with Nottingham Forest ahead of them in the Premier League table and Minteh scoring against Newcastle for Brighton in the FA Cup last week.
Thankfully, it looks as if their woes will be eased going into the summer transfer window with positive financial accounts for the 2023/24 year stating Newcastle recorded a £320m turnover, more than Magpies CEO Darren Eales initially believed it would be.
Newcastle will receive a £73m PSR boost in July with the heavy losses from three years ago dropping off the cycle, giving Paul Mitchell more scope to spend in the summer.
However, Newcastle continue to struggle until the end of the season with a weakened squad which wasn’t able to be improved due to the ongoing battle with PSR – former Crystal Palace owner Simon Jordan has recognised that.
- READ MORE – Simon Jordan explains why PIF should leave St James’ Park and build a new Newcastle United stadium
Simon Jordan defends Newcastle United in PSR rant
Jordan has gotten on the wrong side of Newcastle fans over the years, but recently the former football boss seems to be favouring the Magpies.
There has been a lot of talk regarding Alexander Isak’s Newcastle future after reports that several clubs across Europe are interested in him. Most recently, Jordan linked Isak to Liverpool with the idea that Newcastle would sign Harry Kane from Bayern Munich. The 31-year-old has a £67m release clause but would take up a huge chunk of Newcastle’s wage bill.
On talkSPORT, Jordan spoke with Danny Murphy about Isak’s proposed exit, claiming that no club can afford the hefty price tag Mitchell has placed on him.
The topic of Newcastle’s finances came up to which Jordan said: “What is more sustainable than Newcastle United given who owns them?”
“What is it that you’re doing by stopping Newcastle from spending the way they choose to in order to be able to build their football club the way they want to? What have they achieved by this governance? Have they saved anybody? Have they created anything better? No.
“What they have created is contraventions of rules; people spending money that have been sanctioned as a result of it; people not investing money in football; and the actual spend pattern slowing down, which I’m quite for at times, but what it’s doing is Newcastle are sat there now.
“How do Newcastle get from £320m turnover to £700m like Man City? The runway has been shut. It was shut latterly on Man City. It was never shut on Chelsea.”
Newcastle United’s turnover can be increased
The PIF and Newcastle staff have worked hard to increase the club’s non-existent commercial revenue since the takeover in 2021, with sponsorships and new kit deals coming in their droves.
However, Newcastle are still yet to announce a training kit sponsor and could still sell naming rights to St James’ Park or a new stadium, depending on what decision the PIF make.
- READ MORE – CEO Darren Eales makes ‘frank’ Mike Ashley claim as PIF continue Newcastle United revolution
Eales confirmed that the PIF are ‘100% committed’ to Newcastle despite failing to land those deals. The belief is that they may have been waiting for the outcome of the Man City’s Associated Party Transaction (APT) hearing.
The APT rules were brought in after Newcastle’s takeover, much to the dismay of Toon officials including former owner Amanda Staveley who is said to have been livid.
Newcastle fans have had to wait a bit longer than they originally thought to become the powerhouse many believed they would be when the PIF came in, but surely they won’t have much longer to wait.
Receive a digest of our best Newcastle content each week direct to your mailbox
