Newcastle United fans now want to know how serious the PSR shortage is – it’s inevitable

The clock is now ticking fast for Newcastle United when it comes to PSR.

Only three days left until the June 30, 2024 deadline.

This will end the accounting period for the 2023/24 season.

This will mark the last three-year accounting period for Premier League clubs, with maximum allowable losses over this period of £105 million, although not all expenses are counted for PSR purposes.

Exactly three weeks ago, a Sky Sports report listed these six Premier League clubs as needing to raise cash to stay within the PSR (Profit and Sustainability Rules) – June 6, 2024:

As many as six Premier League clubs will have to sell players before the end of June to comply with the league’s profit and sustainability (PSR) rules.

This date is the cut-off point for the financial year in the top flight and when clubs must show they have suffered losses of no more than £105 million over the last three years – or less if they have spent some of that time outside the top flight. flight.

“Chelsea, Aston Villa, Newcastle, Everton, Nottingham Forest and Leicester are all under pressure to lose one or two key assets, Sky Sports News understands, ahead of the move into the new financial year.”

Of course, there had been speculation long before the Sky Sports report that Newcastle United might have a financial shortfall that they would need to make up before the end of June. The need to earn additional cash by selling one or more players or through other sources of revenue.

I think most Newcastle United fans have already accepted this fact.

By June 30, 2024 at the latest, NUFC will have to contribute some cash to meet the PSR for the last three seasons of financial activity. However, how much demand/need exactly is Newcastle United expected to generate?

Well, we’re about to find out. The situation is imminent and all necessary steps will have to be taken in the last few days of June 2024.

From everything I have seen and heard, namely that these two extremes, public opinion and media speculation, are at one end, some believe that Newcastle United will cope as is and that there is in fact no cash shortfall , which would have to be invented. The other extreme are those who believe and/or speculate that Bruno Guimaraes or Alexander Isak will have to be sold in order for the club not to break Profit and Sustainability (PSR) principles.

My best estimate, like most others I guess, is that it falls somewhere between these extremes.

A recent report from the usually very reliable Athletic stated that its information suggests that £25 million should be enough to keep Newcastle United on the right side of the PSR line by June 30, 2024.

Of course, there has been much speculation that Yankuba Minteh will be sold for over £25 million, or even £40 million, to cover more than the claimed £25 million shortfall, if that is indeed the reality. However, apart from press speculation, nothing significant has apparently happened in terms of completing Minteh’s deal, or indeed any significant deal with Newcastle United.

My overarching opinion (and I don’t claim to have any insider knowledge on anything) is simply that I feel there is no panic emanating from St James’ Park, quite the contrary. I understand that things like this won’t necessarily be played out in public, but while teams like Villa and Everton have already been involved in seemingly hasty deals with each other, other clubs and their fans are questioning it, Newcastle United on the other hand seem very relaxed. At least from where I’m standing.

I find it hard to believe that, given all the investment in Newcastle United and how quickly the club is growing, and all the very expensive legal and accounting advice they can get, that the owners of Newcastle United have put themselves in a position where they would find themselves in June 2024, with the possibility of having to do something really desperate to save the situation, or even a situation where they simply won’t be able to raise the money from revenue to make up the shortfall.

So if we did indeed arrive at June 2024 with a financial deficit that needs to be made up by the end of the month, I cannot believe that the owners of Newcastle United did not have a plan A or plans B, C, D and so on as backups.

I wouldn’t be surprised if the simplest solution to this short-term problem is that Newcastle United’s owners would rather sell one or more players who aren’t first choice to cover any shortfalls. Whether it’s Minteh, Almiron or someone else.

However, I have every confidence that they will have plans to make up any shortfall in other ways.

If we assume £25 million as the possible/probable amount needed, it would be more convenient for Sela to pay that much for the season as front-of-shirt sponsors. So Newcastle United enter into a deal whereby they receive £25 million 12 months earlier in exchange for add-ons to improve the deal?

We also have a new kit deal with Adidas, which may once again mean that money will be paid earlier than planned in exchange for what Adidas can offer in return.

These are just two very obvious suggestions, but of course there are many more ways to introduce additional income this month. Realistically, any shortcomings have certainly been addressed this tax period to ensure we remain on the right side of the PSR. It’s just that we are not aware of it yet, neither is the media, nothing new.