What the £500m Premier League spending cap means for Newcastle – Good news?

Premier League clubs have voted in favour of introducing a spending cap that would see them allowed to spend five times the TV revenue of the team with the lowest in the Premier League.

Man United, Man City and Aston Villa all voted against this change while Chelsea abstained from voting, while every other club in the league was in favour of bringing in a spending cap.

These changes won’t exactly be giving Newcastle sudden freedom to spend, however, it does mean that the financial gap between the Magpies and the high-spending clubs won’t be allowed to get any bigger

All clubs will still be restricted to spending 70-85% of their revenues, but a £500m cap looks set to be introduced. So for example, if Newcastle were to bring in £250m in revenue, they could spend around £175m, while clubs like Man City who may earn £1bn will be limited to spending £500m rather than 70% of their £1bn (£700m)

With this in mind, it’s another huge incentive for Darren Eales and Peter Silverstone to increase our commercial revenues, as we – unlike the likes of Man City and Chelsea – don’t bring in enough at present to be capped. Our revenue was £250 for 2022/23, but anchoring will only really restrict clubs when they get to about £720m (70% of 720m = £500m)

These changes aren’t expected to come into play until the 2025/26 season, so it will certainly be interesting to see how it impacts the long-term future of Newcastle as the owners continue to try and improve their commercial revenue.

Source link : https://www.nufcblog.co.uk/2024/04/30/what-the-500m-premier-league-spending-cap-means-for-newcastle-good-news/

Author : Andrew Reynolds

Publish date : 2024-04-30 08:55:39

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