Football finance expert delivers Newcastle January budget boost fans will welcome with open arms

A football finance expert was shocked that Newcastle did not spend more money in the early days of the January transfer window.

Tom Basson, associate professor of sports management at Coventry University, admits that this may have been a decision made by Eddie Howe or the club’s new owners – with relegation in mind.

Basson adds that relegation to the Championship could set Newcastle back several years as a result of tougher financial regulations in the NFL.

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However, he adds that Newcastle should have no problems meeting the Premier League’s financial constraints this season, suggesting there could be around “£180m” to spend.

Speaking exclusively to Chronicle Live, Basson said, “Honestly, I’m kind of surprised you haven’t spent more money yet.

“The new owners – reports going back to October – when he took office could have spent as much money as they wanted to spend.

“I only follow newspaper reports regarding the players they have been linked with.

“It doesn’t seem like it’s huge sums at the moment and you don’t know who the decision is at the moment, whether it’s the new owners or Eddie Howe’s decision.

“I guess, what I was looking for is if Newcastle were relegated to the second division. If they did, it would see a huge reduction in the investment that the Saudis made.

“The value of Newcastle will go down dramatically and the revenue will go down dramatically in terms of money from TV, for example.

“I think Newcastle could get something in the region worth £150m of TV money and that could be a maximum of £50m. The club in the Championship would not get commercial sponsorship or anything like that.

“If Newcastle fall out, they will have to comply with the Financial Fair Play Championship, which is much stricter than the Premier League.”

Newcastle fans need not be reminded of how bleak the previous transfer periods were, which left the team well behind their Premier League rivals.

The lack of investment culminated in another relegation battle this season, where things looked dire.

However, the Magpies are enjoying the luxury of a transfer window under their new owners and Bason claims they have a major advantage over their relegation rivals.

He said, “For any club, there are two restrictions.” “There is the cash situation where the clubs have the money to spend and I suppose Newcastle have the money to spend if they want to.

“You would have thought it would put them in a much better position than other clubs.

“Take Liverpool for example. When they signed Diogo Jota 18 months ago, they paid very little up front because they didn’t have the money to spend.

“Wolves decided to take the money offer over two or three years. I can’t see how FFP would be an issue for Newcastle either.”

He added: “Assuming the owners invest money in the club, which I assume the PIF will do, you get £35m per season in transfer losses – spending on the team.

“Because they’ve been profitable in previous seasons, they have around £105m to play with, in addition to the earnings they’ve made in the past three seasons.

“The estimate is £180m or so, plus the current wage bill. So, there shouldn’t be any issues with FFP, profitability and the sustainability regulations being called, there shouldn’t be any restrictions this season.”


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