Premier League giants are ready to accept a point deduction punishment next season after FIFA investigation on Financial rules
Newcastle might make a surprise choice to accept a points reduction next season in order to maintain their key players.
That is according to Stefan Borson, who explains how the Magpies are under pressure to make significant transactions before June 30th.
If they fail to do so, they may incur a penalty in the form of a point deduction. Interestingly, Borson says that the club may be ready to pay the penalty and maintain its key players.
“In terms of affiliated party laws, they were obviously focused on Newcastle and blocking their rise following their early success.”
“City is handling the case, so Newcastle does not have to, and there is no doubt that they want City to overturn the regulations because it will have a significant influence on Newcastle’s ability to compete.
“We currently have a situation in which Newcastle must sell a player by June 30th or fail this year’s PSR.
“They may decide that we’d rather keep the player and take the punishment.
“Clearly, if there weren’t linked party regulations, Newcastle would have a simpler time navigating PSR.”
Challenges of the Saudi takeover in Newcastle
The Saudi Public Investment Fund’s (PIF) ownership of Newcastle United in 2021 was a watershed event for the club, with anticipation of major investment and a return in competitiveness.
This acquisition promised a makeover similar to what Manchester City experienced following their ownership by the Abu Dhabi United Group in 2008.
However, despite the club’s tremendous financial resources, it has encountered significant obstacles in emulating City’s quick rise due to the limits imposed by Financial Fair Play (FFP) and Profitability and Sustainability Regulations.
These guidelines are intended to guarantee that clubs stay within their means and avoid undue financial doping, restricting the Magpies’ ability to spend lavishly in new players and facilities without suffering punishment.
Furthermore, the linked party regulations, which prohibit teams from inflating sponsorship deals through entities with strong links to the ownership, have hampered Newcastle’s capacity to raise expenditure.
Unlike Manchester City, which benefited from early, less restrictive laws and developed rich partnerships with firms close to its owners, Newcastle’s route has been more limited.
