This is the latest Newcastle united News with PL Chairman directly involve in talks to Newcastle board and owners of strong spending restrictions on wonders of a club.
Newcastle United’s owners will bolster the team during the summer transfer window, but they are also mindful of the Premier League’s profit and sustainability criteria.
Newcastle United is a ‘big club’ with a lot of promise, but Wolves chairman Jeff Shi has cautioned that due to financial constraints, the Magpies will’reach a limit sooner or later.’
Newcastle’s owners spent £93 million for Kieran Trippier, Chris Wood, Bruno Guimaraes, Dan Burn, and Matt Targett (on loan) in the January transfer window in order to avoid relegation, and the club will strengthen again in the summer.
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Newcastle united News: PL chairman warns Newcastle about spending restrictions which clubs owners know
The leadership, on the other hand, is acutely conscious of the need to adhere to the Premier League’s profit and sustainability standards, which limit top-flight teams to a maximum loss of £105 million over three seasons.
Newcastle’s owners also want to compete in Europe in the future, so they’re paying attention to UEFA’s new financial sustainability criteria, which will limit teams competing in European club tournaments to spending 70% of their revenue on wages, transfers, and agents fees by 2025-26. Newcastle’s wage-to-turnover ratio is at over 65 percent, and part-owner Amanda Staveley has already conceded the it is ‘probably too high.’
While future sponsorship deals will improve earnings, the Magpies will have to be very cautious when dealing in the coming months. As Eddie Howe’s team looks to target the cups and break into the top 10 next year, it will be a summer of evolution rather than revolution on Tyneside.
Despite failing to win any of their first 14 league games, Newcastle came within two points of finishing in the top half of the table, and the black-and-whites finished only two points behind Wolves in 10th place. Shi, on the other hand, does not appear to be very bothered at the moment.
“The ceiling is always there if the Premier League, if Europe, are clear about the laws, the restrictions,” he told Wolves TV. “Newcastle is a good club, a large club, and perhaps if you’re talking about stadium capacity, commercially, just about the club itself, they have somewhat more potential than us, but not by much.” Still no match for the big six.
“Perhaps they have a higher ceiling there, but not by much, so I don’t see much of a difference between us.” They can spend more, but sooner or later they will approach a limit.
“They will experience the same difficulties that we are. I see them as being comparable to us, but not as someone we can’t compete with.
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