According to finance expert Kieran Maguire, Newcastle United will look to boost their commercial income in order to prepare themselves for a future wage cap in the Premier League.
The Times reported last month that a potential salary limit was on the agenda at a recent top-flight meeting as part of a financial restructuring of the English game.
It comes amid speculation that UEFA is in the process of introducing a spending cap.
It is thought that clubs competing in Europe will be limited to spending 80% of their revenue on transfer fees, player salaries and fees owed to agents, and Maguire has now explained how the Magpies are looking to develop their revenue streams in case the top flight adopts a similar system.
He told Football Insider: “I suspect Newcastle and their fans will see this as another attempt from the existing elite within the Premier League to create artificial hurdles to slow down the progress of the club.
“Newcastle have substantially less commercial income than those clubs who regularly compete in Europe. They don’t have the global fanbase that brings.
“Also, under Mike Ashley, commercial income only went up by 3% in 14 years. On the plus side, the new owners do appear to have a strategy with regard to their commercial development.
“We could see this particular income stream accelerate. For every £10m they generate, they are probably going to be able to spend £8m in wages if the rules are implemented in a similar way to UEFA.”
TIF Thoughts on Newcastle’s spending…
Will Newcastle finish in the top seven?
Yes!
No!
Despite spending over £200 million between the January and summer transfer windows, Newcastle haven’t been throwing cash at their problems, as evidenced by their decision to withdraw their interest in a big-money move for Hugo Ekitike.
With Matt Targett, Kieran Trippier, Dan Burn, Nick Pope and Sven Botman all arriving since the start of the calendar year, considerable emphasis has been placed on solidifying the backline – and it appears to be having a positive effect.
The north-east club has kept three clean sheets in their first eight league games, and those solid foundations have led to them losing just once this season.
So while Eddie Howe continues to lead and advance the club on the field, it appears that those behind the scenes are devising a strategy to maximise their potential off it.
We feel getting ahead of the curve will only serve the club well, and considering how sensibly they appear to be handling their finances under the current ownership, there should perhaps be optimism that the powers that be on Tyneside will allow Newcastle to be well-placed if and when such restrictions come in.