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FFP? Here’s Why Newcastle Fans Don’t Need To Worry About The Financial Fair Play Rules

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Newcastle United manager Rafael Benitez
Rafael Benitez

Is Financial Fair Play Affecting Newcastle’s Transfer Deals?

With the summer transfer window picking up pace all around Newcastle United, fans on Tyneside are getting a tad worried about the lack of incomings at their own club ahead of their Premier League return this August.

The capture of winger Christian Atsu on a permanent deal from Chelsea is Newcastle’s only signing so far and, given that he has been at the club for a year on loan, he hardly seems new. The Toon have missed out on targets Tammy Abraham of Chelsea and Willy Caballero of Man City in recent days and although centre-back Florian Lejeune from Eibar looks to be a likely recruit, but the deal is seemingly taking an age to complete.

Financial Fair Play rules have been suggested as a possible reason for Newcastle’s assumed failure in the market so far this summer, though this seems to be incorrect upon further inspection. Had they stayed at Championship level then Newcastle would indeed have been subject to stricter rules, designed to stop clubs from spending beyond their means.

In the Premier League though, they seem to be in the clear at least for now. For those not competing in Europe, the rules governed by the Premier League are what that concern the clubs, including Newcastle United, and they are fully in line with them at present.

PL regulations are aimed at ensuring that clubs do not persistently operate on losses. Clubs must not sustain losses of more than £105million over three successive seasons and this is certainly not something Newcastle have done. Transfer embargos are saved for only the worst offenders and Newcastle, as a business, is run very frugally indeed and so have no worries on this score.

Newcastle United

Put simply, Newcastle have nothing to worry about when it comes to FFP rules. Newcastle did not make a loss at all in 2015/16 and even though they will almost certainly have made a loss last season given the level they were playing at, they will once again go back to an operating profit over the next twelve months.

Newcastle, in fact, have sold Moussa Sissoko and Georginio Wijnaldum, and are well within their rights to spend this on top of any other money made available by owner Mike Ashley.

Newcastle are allowed a wage bill of around £70m-£90m over the next year given their income, and it’s highly unlikely they’ll exceed this. Be patient, football world, Toon signings will come!