When it comes to PSR, Newcastle United is quickly running out of time.
Only three days till the June 30, 2024 deadline.
That concludes the accounting period for the 2023/24 season.
the will be the most recent three-year accounting period for Premier League clubs, with a maximum loss of £105 million allowed during the time, though not every expenditure is recognised for PSR reasons.
Sky Sports reported three weeks ago that six Premier League clubs will need to raise funds to comply with PSR (Profit and Sustainability Rules) by June 6, 2024.
‘As many as six Premier League teams may have to sell players by the end of June to comply with the division’s Profit and Sustainability Rules (PSR).
That date is the deadline for the top flight’s financial year, after which teams must demonstrate losses of no more than £105 million over the previous three years – or less if they spend some of that time outside the top flight.
Sky Sports News understands that Chelsea, Aston Villa, Newcastle, Everton, Nottingham Forest, and Leicester are all under pressure to lose a key asset or two before the start of the new fiscal year.
It was clearly speculated even before the Sky Sports article that Newcastle United would have a cash deficiency to make up by the end of June. Needing to generate extra income by selling one or more players or through other revenue streams.
I believe the majority of Newcastle United fans have already accepted this.
NUFC must bring in some cash by June 30, 2024, at the latest, to satisfy PSR for the last three seasons of financial activity. However, how much does Newcastle United need to generate?
So, we are about to find out. The situation is critical, and any essential steps must be made in the final days of June 2024.
According to what I’ve seen and heard, the two extremes of public opinion and media conjecture have been at one end of the spectrum, with some assuming that Newcastle United will be fine as is, and that there is no cash gap that has to be addressed. On the opposite end of the spectrum are those who believe and/or speculate that Bruno Guimaraes or Alexander Isak must be sold in order for the club to comply with the Profit and Sustainability Rules (PSR).
My best judgement, like the vast majority of others, is that it falls somewhere in the middle of the two extremes.
According to a recent analysis by the always trustworthy Athletic, £25 million should be enough to have Newcastle United on the right side of the PSR by June 30, 2024.
Obviously, there was great anticipation that Yankuba Minteh would be sold for £25 million or more, possibly £40 million, to more than meet the alleged £25 million shortfall, if that is the case. However, aside from newspaper speculation, nothing of substance appears to have occurred in terms of a trade for Minteh, or any big outgoing Newcastle United transaction.
My overarching opinion (and I make no claim to have any insider knowledge) is that there is no sense of fear emerging from St James’ Park, but rather the contrary. I understand that such things will not necessarily be played out in public, but while Villa and Everton have already been involved in allegedly hasty transactions that other clubs and fans are questioning, Newcastle United look to be extremely relaxed. At least from where I stand.
My opinion is that with all of the investment going into Newcastle United and how quickly the club is growing, as well as all of the very expensive legal and accounting advice that they will have on tap, the Newcastle United owners would have put themselves in a position where they would have to do something extremely desperate to save the situation by June 2024. Alternatively, they may be unable to generate sufficient revenue to cover any gap.
So, if we arrived in June 2024 with a cash gap to make up by the end of the month, I can’t believe the Newcastle United owners didn’t have backup plans A, B, C, D, and so on.
To address the short-term issue, Newcastle United’s owners may have considered selling non-first-choice players to meet the shortfall. Whether it’s Minteh, Almiron, or anyone.
However, I am confident that they will devise ways to compensate for any potential deficiency through other means.
If we take £25 million as a possible/likely figure needed, Sela conveniently pays that amount per season as front-of-shirt sponsors. So Newcastle United is doing a deal in which they receive £25 million 12 months early in exchange for any additions they want to add to their pact?
We have a new kit contract with Adidas, which may result in early payment in exchange for an offer from them.
These are just two apparent possibilities, but there are many other methods to generate additional cash this month. Indeed, being realistic, any shortage must have been addressed for this accounting period in order to be on track with PSR. We just aren’t aware of it yet, and neither is the media; nothing new there.
Read more at: https://sportupdates.co.uk
Leave a Reply