To make sure you never miss out on your favourite NEW stories, we're happy to send you some reminders
Click 'OK' then 'Allow' to enable notifications
| Last updated
Newcastle United's new owners could spend £200 million and not violate financial fair play rules.
This is because previous owner Mike Ashley made sure The Magpies did not exceed losses of £105 million, which is the maximum Premier League clubs are allowed to lose over a three year period.
Whilst Mike Ashley is not popular In Newcastle, his legacy for new owners is a profitable club. In last 3 yrs profit £38m, factor in FFP adjustments for academy etc of about £50m & this means the new owners have an allowable FFP loss of £105m plus £88m= £190m+ to play with #NUFC pic.twitter.com/IPSMzn3p22- PriceOfFootball (@KieranMaguire) October 7, 2021
This, as well as a £38 million profit over that time and a £50 million investment into Newcastle's academy and community schemes (which are exempt from financial fair play), has given the Saudis plenty of room to spend big this January and in the transfer windows to come.
"For all that is wrong with Mike Ashley, I would love to be buying a club from him," football finance expert Kieran Maguire told The Daily Mail, as quoted by GiveMeSport. "There is a lot of scope to increase the investment in Newcastle if the new owners choose to do so.
"Mike Ashley himself is a toxic brand when it comes to sponsors and Newcastle have struggled to match the growth of other clubs.
"There is now a lot of scope for an increase in commercial and sponsorship revenue and from Saudi Arabia itself. We saw that with Manchester City. They could sign deals in the area where the owners come from."
The takeover was confirmed yesterday evening, marking an end to Ashley's 14 years in charge at the club. The news was greeted with wild celebrations outside St James' Park, with many ex-players and celebrity supporters excited about what might happen to their beloved Newcastle moving forwards.
"All we've done is tick along and survive for 14 years," legendary striker Alan Shearer told BBC Sport. "We've had no real ambition, we've survived, cup competitions have been non-existent and this city and this football club and our fans deserve better.
"The fans are loyal, they love their football club and their life is Newcastle United. It all depends on whether Newcastle win on a Saturday. They work hard all week to spend their money on the club, so I understand why there is so much happiness in the city today and I feel exactly the same.
"Our fans also need to know that they matter, because they haven't for 14 years, so today is special for them."
With billions in the bank and the freedom to spend it as and when they like, Newcastle United could be about to upset the Premier League applecart.
Chosen for YouChosen for You
Most Read StoriesMost Read