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

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

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

This will end the settlement period of 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 named six Premier League clubs that need to raise funds to comply with PSR (Profit and Sustainability Principles) – June 6, 2024:

“As many as six Premier League clubs must sell players before the end of June to comply with profit and sustainability regulations (PSR).

This date is the cut-off point for a top-flight financial year, in which clubs must demonstrate that they have suffered losses of no more than £105m over the last three years – or less if they have spent part of that time outside the top flight.

Chelsea, Aston Villa, Newcastle, Everton, Nottingham Forest and Leicester are all facing the prospect of losing one or two key assets before the start of the new financial year, Sky Sports News has learnt.

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

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 think, is that it falls somewhere between these extremes.

A recent report from the usually very reliable Athletic stated that a figure of £25m should be enough to get Newcastle United on the right side of the PSR line by June 30, 2024.

Of course, there has been much speculation that Yankuba Minteh was to be sold for £25m or more, or even £40m to cover the alleged £25m shortfall if that is indeed the case. However, apart from press speculation, apparently nothing of substance has happened in terms of a deal being struck for Minteh, or any significant deal coming out of Newcastle United.

My main opinion (and I don’t claim to have any insider knowledge on anything) is simply that I don’t feel panic emanating from St James’ Park, quite the opposite. I understand that things like this won’t necessarily be played out in public, but while clubs like Villa and Everton have already been embroiled in seemingly hasty deals with each other that other clubs and their fans are questioning, Newcastle United on the other hand seem very relaxed. At least from my point of view.

In my opinion, I can’t believe that with all the investment in Newcastle United and how quickly the club is growing, and all the very expensive legal and accounting advice they will have at hand, that the owners of Newcastle United would put themselves in a position where they would have to do something really desperate by June 2024 to save the situation. Or in a position where they simply wouldn’t be able to raise the money from revenues to cover the shortfall.

So if we have indeed reached June 2024 with a financial shortfall to make up by the end of the month, I cannot believe that the owners of Newcastle United did not have a plan A as good as plans B, C, D and so on as a backup.

I wouldn’t be surprised if the simplest solution to this short-term problem is for Newcastle United’s owners to prefer to sell one or more non-first-choice players to cover any shortfall. Whether it be Minteh, Almiron, or anyone else.

However, I am absolutely certain that they will have plans to cover any shortfall in other ways.

If we accept £25m as a possible/likely figure, then it’s convenient that Sela pay for the season as shirt sponsors. So Newcastle United do a deal where they get £25m 12 months early, in exchange for any add-ons that improve their deal?

We also have a new equipment deal with Adidas which may, once again, involve the possibility of paying money upfront in exchange for what they could offer Adidas.

These are just two very obvious suggestions, but of course there are many more ways to introduce additional income this month. Realistically, any shortcomings this trading period have certainly already been addressed 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.