According to The Athletic’s Chris Waugh, Newcastle United would-be owners could spend up to £150 million in the transfer market in a season without breaching the financial fair play.
That has been made possible due to Mike Ashley’s frugality and business model.
The Magpies’ margin for spending is one of the greatest among English top-flight clubs as revealed in their accounts for the year up to June 30, 2019.
Excluding the £111 million of long-term interest-free loans owed to Ashley – which would be wiped out as part of the £300 million price agreed for the purchase of the club – Newcastle are debt-free and are a more attractive proposition and club well-placed for investment from prospective new owners due to the current chairman’s approach.
His buy-to-sell model in the transfer market may have affected the team’s performance on the pitch over the years, but it has helped improve the balance sheet, and Saudi Arabia’s Public Investment Fund will be able to make necessary squad changes from the get-go.
The coronavirus pandemic is set to crash the market value of players this summer, and as little as £30 million could be enough to land a top signing.
PIF are waiting for the approval of the Premier League, but they already have their managerial target(s) lined up.
Whoever is appointed, alongside a director of football, will have the say on transfers, and should the cards be played right, a squad capable of immediately challenging for a top-seven finish could be assembled.