Newcastle could consider accepting points deduction to retain star players

Newcastle could make a shock decision to accept points deduction next season in order to keep hold of their star players. 

That is according to Stefan Borson who explains how the Magpies are under pressure to make substantial sales before the 30th of June.

If they fail to do so, they may face penalty in form of points deduction. Interestingly, though, Borson claims that the club might be willing to take the penalty and keep their star players.

Speaking to Football Insider, he said:

“When it comes to the associated party rules, they were clearly focused on Newcastle and preventing their emergence after the early success that they had.”

“City are running the case, so Newcastle don’t need to and there’s no question that they want City to overturn those rules because it will have a big impact on Newcastle’s ability to compete.

“We have the situation right now where Newcastle need to sell a player before 30th of June or they will fail this year’s PSR.

“They may take a view on that and say – actually, we’d rather keep the player and take the penalty.

“Clearly, if there wasn’t the associated party rules, it would be easier for Newcastle to navigate PSR.“

Challenges of the Saudi takeover at Newcastle

The Saudi takeover of Newcastle United in 2021 by the Public Investment Fund (PIF) was a big moment for the club, bringing expectations of significant investment and a resurgence in their competitive stature.

This acquisition promised a transformation akin to what Manchester City experienced after their takeover by the Abu Dhabi United Group in 2008.

However, despite the considerable financial resources available, the club has faced substantial challenges in replicating City’s rapid ascent due to the constraints imposed by Financial Fair Play (FFP) and Profitability and Sustainability Regulations (PSR).

These rules are designed to ensure that clubs operate within their means and prevent excessive financial doping, thereby limiting the extent to which the Magpies can invest heavily in new players and infrastructure without risking sanctions.

Additionally, the associated party rules, which prevent clubs from inflating sponsorship deals through companies with close ties to the ownership, have further complicated Newcastle’s ability to increase their spending.

Unlike Manchester City, which benefitted from early, less stringent regulations and established lucrative sponsorships with entities connected to their owners, Newcastle’s path has been more restricted.