Lloyd Kelly’s move to Juventus is set to provide a major boost to Newcastle United’s transfer budget.
Newcastle United may not bring in any major additions to Eddie Howe’s squad this window, but sporting director Paul Mitchell has been busy thinning the squad.
Miguel Almiron left to rejoin Atlanta United in a move that will pocket Newcastle £11m.
He has been followed out the exit door by Lloyd Kelly, who has joined Juventus on loan with a mandatory £20m buy option for the summer.
Newcastle have been hamstrung by the Premier League Profit and Sustainability Rules over the past three windows, but the money raised over the past month will ease all concerns.
The fee from Lloyd Kelly alone is enough for Newcastle to go and sign a mega-star.
Lloyd Kelly sale allows Newcastle United to sign £70m star
Kelly’s sale will drastically help Newcastle’s PSR situation, much more than simply adding the £20m profit to the budget.
Under PSR, Premier League clubs are able to amortise costs of signings of five years, meaning the fee is spread evenly.
iNews spoke to football finance expert Rob Wilson, who explained that the profit from Kelly will allow Newcastle to sign a £70m star.
“Take Lloyd Kelly – they signed him for next to nothing and are pushing him out for £18-20m and after you take out agents’ fees and other things they’ll probably bank the thick end of £15m PSR profit on that deal.
“You amortise player contracts on incoming transfers so that’s potentially a £70m player you can sign if you spread the deal over a five-year contract.”
Newcastle United’s patience will pay off
It has been a frustrating window for Newcastle fans, who have had to watch top targets move elsewhere.
Newcastle missed out on Abdukodir Khusanov and Vitor Reis with the duo joining Manchester City despite the Magpies putting in ground-work on both deals.
But ultimately, Mitchell wanted to save money until the summer, when targets are more available and willing to leave.
READ MORE: Lloyd Kelly having doubts as twist emerges ahead of move from Newcastle United to Juventus
Newcastle are also chasing a return to European football which will help Mitchell and the recruitment team attract some top talent.
Howe has been left with a weakened squad following the sales of Kelly and Almiron, but it is all part of a bigger picture.
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