Newcastle may opt for a surprising strategy of accepting a points deduction next season to retain their key players.
According to Stefan Borson, the Magpies face pressure to make significant transactions before June 30th. Failure to do so could result in a points penalty. Interestingly, Borson notes that the club might prefer to accept the penalty to keep its crucial players.
Borson states, “Regarding affiliated party laws, the focus was on Newcastle to block their rise after their early success.”
“City is handling the case, so Newcastle doesn’t have to, and they hope City overturns the regulations to impact Newcastle’s competitiveness positively.
“Newcastle must sell a player by June 30th or fail this year’s PSR, but they may prefer to keep the player and take the punishment. Without linked party regulations, Newcastle would navigate PSR more easily.”
Challenges of the Saudi takeover in Newcastle
The Saudi Public Investment Fund’s (PIF) 2021 acquisition of Newcastle United promised significant investment and renewed competitiveness, similar to Manchester City’s transformation under the Abu Dhabi United Group in 2008.
However, despite substantial financial resources, Newcastle has faced obstacles in replicating City’s rapid ascent due to Financial Fair Play (FFP) and Profitability and Sustainability Regulations.
These regulations ensure clubs operate within their means, limiting Newcastle’s ability to spend on new players and facilities without penalties.
Additionally, linked party regulations prevent teams from inflating sponsorship deals through entities connected to ownership, hindering Newcastle’s spending capacity.
Unlike Manchester City, which benefited from earlier, less restrictive laws and established lucrative partnerships with firms linked to its owners, Newcastle’s path has been more constrained.
