Newcastle United could be in a position to increase their wage bill this summer, a football finance expert has revealed.
While the summer transfer window is still in its early stages, Newcastle United fans have seen big-name targets move elsewhere.
Matheus Cunha and Liam Delap joined Manchester United and Chelsea respectively. Now, Bryan Mbeumo looks set to follow Cunha to Man United.
Still, there’s still reason for optimism at St James’ Park. Owners PIF will back Eddie Howe in the transfer market and there could well be money to spend.
- Every player linked with Newcastle in summer transfer window: Latest news and prices on Eddie Howe’s targets
Newcastle United’s revenue could grow to £400million
Speaking to Geordie Boot Boys, football finance expert Adam Williams revealed Newcastle’s revenue could grow to £400million.
The beginning of July brings a new PSR assessment window. Williams believes that the fact the £73million loss recorded in the 2022/23 season will no longer be part of their accounts is a “game-changer” for the club.
“Since PIF bought Newcastle, the accounts show that the club has paid out nearly £600m in wages,” he said.
“We don’t have the figures for 2024-25 yet, but I’d expect that to hit nearly £800m once that data is available. As a percentage of revenue, their wage bill in 2023-24 was actually mid-table at 68 per cent.
“Their amortisation, however, which is how clubs account for transfer fees over a period of time, was towards the higher end. That meant they didn’t have huge room for manoeuvre as far as PSR is concerned.
“But from 1 July, we’ll be in a new PSR assessment window. The significance for Newcastle is that the £73m loss they posted in 2022-23 will then no longer be part of the equation. That’s a game-changer.
“And thanks to Champions League qualification and the retail boom sparked by the League Cup triumph, Newcastle’s revenue could hit £400m next season.”
With Champions League qualification secured and the Carabao Cup won, Newcastle’s revenue could grow when the announcement is made in a few months’ time.
Williams adds that Newcastle will likely have a lot of financial flexibility to increase their wage structure all while spending around £100million on transfers.
Player Weekly wage
Bruno Guimaraes £160k-per-week
Joelinton £150k-per-week
Anthony Gordon £150k-per-week
Kieran Trippier £120k-per-week
Sandro Tonali £120k-per-week
Alexander Isak £120k-per-week
Newcastle United’s highest paid players, data via Capology
“PIF have said they will always spend to the limit of PSR.
“I suspect that means they have a lot of flexibility to increase the wage bill as well as spending £100m-plus on new signings. That’s going to be as critical to retention as it is to recruitment.
“They are in a very good place financially and, if they get their business right this summer, I think 2025-26 could be the springboard for real, sustained success on the pitch.”
Photo by George Wood/Getty Images
Photo by George Wood/Getty Images
Newcastle United’s wage structure can be broken – but PIF won’t be held to ransom
The Newcastle United owners seem unlikely to suddenly start spending vast sums on player wages just for the sake of it. Little about what they’ve done in the transfer market thus far would suggest they’re willing to be held to ransom.
While promising to hear that the wage bill can be increased, Newcastle have many things to consider.
Newcastle are set for talks with Alexander Isak over a new contract and the Sweden star will surely want rewarding.
If the club were to go out and sign new players on huge salaries, it could impact how their existing stars feel.
It’s a tight balancing act, there’s little doubt about that. At some point, Newcastle will need to start moving in line with how much their more established rivals pay their players.
Until that point, however, they cannot afford to rush.
