Premier League giants are ready to accept a point deduction punishment next season after FIFA investigation on Financial rules
To hang on to their top players, Newcastle can make a surprising choice to agree points reduction next season.
Stefan Borson clarifies how the Magpies are under pressure to generate significant sales before June 30th.
Should they neglect to do so, they can suffer point deduction penalties. Fascinating, though, Borson says the club could be ready to pay the penalty and retain its top players.
“When it came to the related party restrictions, they were obviously concentrated on Newcastle and stopping their rise following the early success that they had.”
“City are running the case, so Newcastle don’t need to and there’s no doubt they want City to reverse those regulations because it will greatly affect Newcastle’s capacity to compete.
“We now see Newcastle needing to sell a player by June 30th to avoid failing the PSR this year.
“They could see that and argue, really, we would much prefer retain the player and deal with the punishment.
” Clearly, Newcastle would be more able to negotiate PSR without the related party requirements absent.”
Difficulties of Saudi takeover at Newcastle
For Newcastle United, the Saudi ownership by the Public Investment Fund (PIF) in 2021 was a momentous event bringing hopes of major investment and a comeback in their competitive profile.
This purchase promised a metamorphosis like what Manchester City went through following the acquisition by the Abu Dhabi United Group in 2008.
Notwithstanding the significant financial resources at hand, the club has struggled greatly to replicate City’s explosive climb under the restrictions of Financial Fair Play (FFP) and Profitability and Sustainability Rules (PSR).
These guidelines are meant to guarantee that clubs run within their means and stop too much financial doping, therefore restricting the degree to which the Magpies may spend substantially in new players and facilities without running danger of punishment.
Further complicating Newcastle’s capacity to raise their expenditure are the accompanying party regulations, which forbid teams from inflating sponsorship deals through businesses closely linked to the ownership.
Newcastle’s route has been more limited than that of Manchester City, who profited from early, less rigid rules and developed rich sponsorships with companies linked to its owners.
