After Marc Guehi, Newcastle expected to make another ‘statement signing’

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For Newcastle United, navigating the Premier League’s Profit and Sustainability Rules is the defining issue of their current era.

PSR limits Premier League clubs to losing a maximum of £105m over a rolling three-year period, as long as the bulk of that deficit is covered by an owner.

Naturally, the eye-wateringly wealthy Saudi Public Investment Fund are prepared to bankroll the club’s losses, and CEO Darren Eales has said that Newcastle will always spend the maximum allowed under PSR.

Newcastle have sailed close to the breeze so far, only narrowly dodging a breach in the monitoring period up to 30th June 2024 by virtue of academy sales and controversial quasi-swap deals.

The fact that Newcastle qualified for the Champions League in that assessment window and yet still were has been used by many commentators as evidence that the rules are not fit for purpose.

Newcastle’s pursuit of Marc Guehi meanwhile has hit something of a roadblock due to Crystal Palace’s £70m appraisal of the England defender.

The Magpies are not in a position to pay what they may consider over the odds for players, especially given that their amortisation bill will run well past £100m mark this term.

Eddie Howe‘s side have enjoyed a good start to the season, beating Southampton 1-0 on the opening day. But they are still keen to strengthen.

But do they have the headroom under PSR to do so? TBR Football spoke to Liverpool University football finance lecturer Kieran Maguire to give Newcastle fans the answers.

How much can Newcastle spend in the remaining days of the window?

The question on everyone’s lips.

According to Maguire, while Newcastle will have to ensure any new arrivals are fully-costed, they still have capacity to make at least one more big signing.

“The fact Newcastle are still being linked with Marc Guehi indicates that the club has solved its 2023-24 PSR issue,” he said.

“They don’t want that to repeated in 2024-25, although you have to give the club credit for selling academy players instead of Anthony Gordon, Bruno Guimaraes and so on.

“They have kept the crown jewels for the time being. I would still expect to see a statement signing from Newcastle, even if it is spread across more than one signing.

“PIF have not become involved in Newcastle with the ambition of qualifying for the Europa Conference League.

“We have already heard Eddie Howe make a few noises with regard to the size of the squad. He doesn’t think it’s enough to him.

“I’m sure that will be reflected in the fanbase and the senior management team will be aware of this as well.“

• READ MORE NEWCASTLE UNITED NEWS: Newcastle are now about to bid £17m to sign player similar to Adam Wharton

Newcastle eye multi-club model

Since the earliest stages of the PIF ownership, Newcastle have talked openly about their desire to create a club network similar to Man City’s City Football Group or the Red Bull system.

Now, they are being linked with historic Brazilian club Vasco da Gama, who last changed hands for over £100m but are now likely available at a cut price due to the financial issues faced by their owners, 777 Partners.

“If PIF do acquire Vasco de Gama, it’s a logical step to develop a multi-club model,” said Maguire.

“If you take a look at the major markets in terms of football talent, there is no doubt that Brazil is top of the pile when it comes to player exports.

“Therefore, having a club based in Brazil which could be used as a gateway to Europe and into Newcastle is a smart move to make.

“The multi-club route appears to be increasingly popular with owners looking to take advantage of revenue and cost synergies, as well as the advantages in terms of giving players the requisite points under the GBE system to come to the UK.

“All of these are positives for Newcastle. For PIF, the cost of buying a club in Brazil is negligible. The rewards, potentially, are significant.“

Newcastle’s commercial picture

Newcastle are currently in the process of hiring a new head of content, as well as generally maturing their commercial operation.

Significantly, minority co-owners the Reuben Brothers have recently purchased a media studio that could be used to boost Newcastle’s brand and help with content.

“Having control over content, as we have seen in various regimes in governance and sport, can be very beneficial for a club,” said Maguire.

“The Jurgen Klopp documentary is potentially being sold for something in the region of £10m or more.

“Owners see the benefits of A) getting paid and B) being able to expand the brand on a global stage through the likes of Netflix, Amazon Prime and so on.

“Having someone with the right background and leveraging on the Reuben Brothers connection here is a sensible step from Newcastle’s point of view.

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“It is further evidence that the companies that own football clubs are becoming far more than just football clubs – they want them to be seen as franchises and brands in their own right.

“That can be monetised to the owners’ benefit and, ideally, the club and fans’ as well.”