Newcastle may soon be forced to sell a key player or two during the summer transfer period to avoid financial fair play violations. The news comes as the Magpies recently revealed their financial details from the 2022/23 campaign. Club CEO Darren Eales expressed excitement when he announced that revenue has gone up about $318 million. This was a 40% rise compared to the prior year.

Nevertheless, Newcastle also declared that they have recorded a post-tax loss of $93 million during this same timeframe. This only adds to the club’s deficits during the last three years. The Magpies have now racked up $198 million in total losses since the new Saudi ownership took control of the team. Current Premier League PSR rules state that clubs cannot have losses over $134 million during three years.

The team’s financial issue can, however, be eased due to a specific clause in the rules. Clubs can remove money invested in their women’s team, academy, and charity foundations from their official deficit. The Guardian reports that Newcastle would be slightly under the aforementioned loss limit by removing these figures.

Newcastle stepping around financial fair plays

With the Magpies currently close to the borderline regarding losses, the club may be looking to sell players come summer. Newcastle has recorded a net spend of $450 million in the transfer market since the beginning of the 2021/22 season. The Saudi Public Investment Fund (PIF) officially took over a majority share of the team in the fall of 2021.

Eales even refused to rule out selling a top player such as Bruno Guimarães, Alexander Isak, or Sven Botman. The club exec claimed that they have to be aware of the PSR laws and sell a star to reinvest back into the squad.

“If we’re going to get to where we want to get to, at times, it’s necessary to trade your players,” Eales stated in the interview. “It’s a counterintuitive part of the PSR system that there is an incentive to trade players if you want to reinvest.”

Magpies manager admits he can’t buy key players this month

Newcastle manager Eddie Howe echoed the club’s CEO sentiments on Friday. The coach claimed that the league spending rules are hindering their need to purchase players during the January transfer period. Despite spending freely in recent years, the Magpies currently sit ninth in the Premier League table.

Part of their issue at the moment has been a series of unfortunate injuries to key players. While they would love to bring in new top players, Newcastle has to be aware of the financial laws. “In an ideal world, given the freedom to act we would have brought players in already,” stated Howe.

“But we’re not in that situation – as Darren [Eales] alluded to on Thursday, Financial Fair Play is a problem for us, and we’re having to navigate around that. That’s the position we’re in. When does it become a problem? It’s already one, but we’re trying to manage through it.”

With a small squad due to injuries, Newcastle has only won four of their last 14 matches in all competitions. Howe also then revealed on Friday that star midfielder Joelinton has been ruled out for at least six weeks with a thigh injury.

As a result, the club could be without 10 players due to various issues for their upcoming game with Manchester City. Newcastle is set to host the reigning European champions on Saturday, Jan. 13.