Newcastle United might consider a surprising strategy of accepting a points deduction next season to retain their key players.
This idea is discussed by Stefan Borson, who outlines the pressure the Magpies are under to finalize significant transactions before the June 30th deadline. Failure to meet this deadline could result in a points penalty. Borson suggests that the club may be willing to accept this penalty to keep their crucial players.
Regarding affiliated party regulations, these rules have been particularly stringent for Newcastle, aiming to curb their rapid ascent following early successes. The case is currently being managed by Manchester City, which means Newcastle can avoid direct involvement. However, there is a strong hope that Manchester City will succeed in overturning these regulations, significantly affecting Newcastle’s competitive abilities.
Borson explains that Newcastle is in a precarious position where they must sell a player by June 30th to comply with this year’s Profitability and Sustainability Regulations (PSR). However, the club might prefer to keep their player and accept the resulting penalty. He points out that without linked party regulations, Newcastle would navigate PSR more easily.
The challenges of the Saudi takeover in Newcastle are evident. The acquisition of Newcastle United by the Saudi Public Investment Fund (PIF) in 2021 marked a significant moment for the club, with expectations of substantial investment and a resurgence in competitiveness. This takeover was anticipated to bring about a transformation similar to that experienced by Manchester City following their acquisition by the Abu Dhabi United Group in 2008.
Despite the club’s vast financial resources, Newcastle has faced significant hurdles in replicating Manchester City’s swift rise due to Financial Fair Play (FFP) and Profitability and Sustainability Regulations (PSR). These regulations are designed to ensure that clubs operate within their financial means and prevent excessive financial doping. As a result, Newcastle’s ability to spend extravagantly on new players and infrastructure without incurring penalties has been limited.
Furthermore, the linked party regulations have restricted Newcastle’s capacity to increase their spending. These rules prevent clubs from inflating sponsorship deals through companies closely associated with their ownership. Unlike Manchester City, which benefited from the less restrictive regulations of the past and formed lucrative partnerships with entities connected to its owners, Newcastle has faced a more constrained path.
This situation underscores the complexities and challenges Newcastle faces under the new ownership. While the Saudi takeover brought hope and financial power, the club has to navigate through the stringent regulatory framework that governs modern football.
These financial and regulatory constraints present significant obstacles to the Magpies’ ambitions of achieving rapid success akin to Manchester City’s transformation over the past decade.
