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Newcastle emulating Man City as summer plan revealed, eight-figure FFP boost likely

Posted By Joe E
May 15, 2024
10:03 am
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GettyImages 1391995114 1536x1025 2 Newcastle emulating Man City as summer plan revealed, eight-figure FFP boost likely

Newcastle United are following in the footsteps of some of Europe’s biggest clubs with their plans for pre-season ahead of 2024-25.

The Magpies toured the United States and Australia ahead of the current campaign but, in contrast to the previous two years, elected not to visit their owners’ homeland of Saudi Arabia during the winter break.

Now, Newcastle have announced that they will travel to Japan in preparation for next season, with games lined up in Tokyo against Urawa Red Diamonds and Yokohama F. Marinos.

A general view inside the stadium during the Premier League match between Newcastle United and Leicester City at St. James Park on April 17, 2022 i...
Photo by George Wood/Getty Images

They join the likes of Man City, Paris Saint-Germain and Inter Milan to have toured the east-Asian country in recent years, while Tottenham will also visit over the summer.

Newcastle to bank £10m-plus in Japan and boost FFP status

Man City earned around £16million when they toured Japan in their last pre-season excursion.

Newcastle do not yet have the same level of global appeal but their commercial department have proven themselves to be top operators – revenue from sponsorship has risen by nearly £50m since the takeover.

With merchandising, ticket sales and a tour sponsorship opportunities aplenty, the direct and indirect revenue that Newcastle could earn from their Japan trip will likely be in excess of £10m.

It will also represent a major opportunity to expand their market reach in a hitherto untapped region and, by extension, increase the value they can provide to sponsors further down the line.

How much can Newcastle spend on transfers this summer?

New Premier League FFP rules (now called Profit and Sustainability, or PSR) could be phased in from the summer.

Matters will be complicated somewhat if Newcastle remain in 6th place in the league and qualify for European football as UEFA has its own, stricter set of financial rules.

In addition to a potential new anchroing system that will limit clubs to spending an as yet unspecified multiple of the lowest earning club’s TV revenue, Newcastle will be subject to an 85 squad cost cap under the Premier League’s system, shrinking to 70 per cent under UEFA’s structure.

The Magpies’ revenue was £250m last season but will be considerably higher than that for 2023-24 thanks to their participation in Europe.

Alexander Isak of Newcastle during the Premier League match between Burnley FC and Newcastle United at Turf Moor on May 04, 2024 in Burnley, Englan...
Photo by Gareth Copley/Getty Images

Based on the Premier League system, a turnover of £300m would leave the club with £255m to spend on wages, transfers and agent fees under FFP/PSR, shrinking to £210m under UEFA’s system.

Their wages alone were £187m last season, which means that the FFP quota is tight going into 2024-25.

While an eight-figure windfall from pre-season will help, it is likely that a big-name player sale – perhaps £120m-rated Alexander Isak – will be necessary before Eddie Howe is able to spend in the summer.



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