Alexander Isak’s future at Newcastle United is far from certain despite the fact the club are planning to hold contract talks with the striker.
Isak remains under contract at Newcastle United until the summer of 2028. As such, the club are in a very strong position when it comes to trying to keep him, during this transfer window at least.
Still, Isak’s Newcastle salary appears to be an issue. Newcastle are prepared to make Isak their highest-paid player, but there appears to be no guarantee even that would be enough to keep him long-term.
Indeed, Isak wants £300k-per-week at Newcastle. That would break the club’s wage structure significantly, with the club’s current highest-paid player thought to be Bruno Guimaraes on £160k-per-week.
With that in mind, Geordie Boot Boys spoke to football finance expert Adam Williams about the club’s situation.
- Who is Alexander Isak? The striker who burned his Newcastle United reputation to force £125m Liverpool transfer
Whether Newcastle United could afford to give Alexander Isak £300k-per-week
Williams highlighted that Newcastle agreeing to pay Isak the figure he’s reportedly after doesn’t actually mean they’d only be shelling out £300k on a weekly basis.
In fact, once bonuses and National Insurance contributions are put into the mix, the figure could cost Newcastle up to £400k-per-week.
“Given the demand for his signature, Isak probably is a £300,000-a-week player,” he said.
“But what we mean by ‘£300,000-a-week player’ isn’t actually as straightforward as you might initially think. Is that inclusive of bonuses? How heavily weighted towards the base salary is that figure? Does that include National Insurance?
“On a £300,000 base wage, National Insurance alone is going to cost the best part of another £50,000 weekly. If bonuses aren’t included too, you’re getting towards £400,000 per week, which is nearly £21m per year.
“If you’re going to bow to his demands, you have to be ready for the top rung of players already on the books to have similar expectations, as well as any elite signings you’re going to make. Newcastle have been smart in the way they have handled the wage bill since the PIF takeover, in my opinion.
“They have emphasised value ahead of statement making. That’s what’s got them to where they are now – and by any measure, they are miles ahead of schedule with the Saudi project.”
Should he pen a new deal, Williams argues that the cost involved could even rise up to £500k-per-week for the club.
“Seen through a separate lens, you have to look at what a replacement is going to cost you in PSR terms.
“Newcastle have no cash issues given that PIF are willing to give them the maximum amount of liquid capital allowed under PSR, so it’s the spending rules that you need to consider.
“At the moment, Isak costs them £12.5m annually in amortisation plus about £8m in wages in PSR terms. That’s a £21m PSR impact every year, but if he signs a new contract the amortisation charge is going to come down a bit because you’re amortising his initial fee over a more prolonged period.
“Let’s say they decide to agree a new five-year deal worth £300,000-a-week deal that rises to £400,000 with bonuses and National Insurance. Based on his current book value, that’s going to mean his amortisation charge is about £5m per year, plus his wages – that’s the equivalent of a £500,000 per week PSR impact.
“If they sold him, you get a £150m immediate boost, minus his book value of around £24m. That’s relevant to PSR for three years, plus you remove his wages.”
Whether Alexander Isak has handed in a transfer request at Newcastle United
Isak has been training away from the Newcastle squad, following a small thigh complaint.
That looks a simple enough explanation, although it’s hard to ignore the fact he was spotted on his own at the Newcastle United training ground amid a background of intense speculation over his future.
Still, Eddie Howe has confirmed that Isak is happy at Newcastle.
Clearly, that doesn’t mean a move away wouldn’t appeal to him, just that it seems he won’t force an exit as things stand.
According to The Chronicle, Isak has not handed in a transfer request.
Receive a digest of our best Newcastle content each week direct to your mailbox
