Proposals for changes to spending could benefit United

NEWCASTLE United’s ownership have been told they can ‘put rocket boosters’ on their transfer budget as the Premier League plot major changes to how top-flight clubs can spend their money.

Football finance expert Kieran Maguire believes the new proposals, which would see overspending clubs hit with a ‘luxury tax’ fine as opposed to points deductions, would allow Premier League teams to take a financial hit if they deem the punishment is worth the crime of spending above their means.

The current profit and sustainability rules mean Newcastle, and their Europeanchasing rivals, have been restricted to how much they can spend in recent months. The January transfer window was one of the quietest on record, with the Saudi Arabian Public Investment Fund opting to keep their powder dry to avoid the same fate as Everton and Nottingham Forest following their recent points deductions.

Premier League bosses are expected to change the system one way or another this summer, with one of football’s leading finance gurus believing the proposed plans would be a great thing for Newcastle’s hierarchy and transfer plans.

“One of the complaints coming from Newcastle fans is that Chelsea were allowed to spend as much money as they wanted under Roman Abramovich when he first arrived,” Maguire told Football Insider.

“The same was true with regards to Sheikh Mansour and Manchester City. It seems harsh that Newcastle are being penalised for being in the same situation but at the wrong time compared to those two other clubs.

“So the new luxury tax proposal would give Newcastle’s owners the capacity to put rocket boosters on their budget. A lot would depend upon whether they felt that the rate of tax is worth paying – and that is the crux of the issue for me.”

Newcastle have posted consecutive annual losses after significant investment in the playing squad and club infrastructure. As such, funds were limited in the January window and, until any planned rule change, Eddie Howe may again be restricted as to how much he can improve his playing squad come the summer.

“Without trying to predict the summer, which is very difficult to do, no, I don’t see a way that we can have a mass overhaul,” Howe said last month.