Football financial expert Stefan Borson has claimed Newcastle United face a potential penalty due to UEFA’s financial regulations.
Introduced in 2023-24, the squad-cost ratio became the latest measure to restrict spending. Phased in gradually, the amount the club can splash out was reduced to 70 per cent of their revenue at the start of the season.
This impacted Newcastle, whose recently published revenues of £320million – while a sizeable jump from the pre-takeover era – pale in comparison to their English counterparts. Critics argue that the UEFA change – which the Premier League will align with next season – has done little to stop the gap between the elite and the ambitious.
Stefan Borson on Newcastle United finances
Monetary guru Borson expects Newcastle to have breached the squad-cost ratio and a “settle agreement” will need to be thrashed out. Last year saw Chelsea fined £9.4million and Aston Villa slapped with a £5.1million bill for failing to meet the requirements.
That was when the cap was set at 80 per cent of a club’s revenue – not 80 per cent. When asked about whether Newcastle could buy a player this month, Borson suggested a UEFA hiccup could be heading their way.
“In some ways it’s similar to Liverpool in that they’re in quite a good position,” he told Football Insider. “They (Newcastle) were unlucky not to progress in the Champions League, but they can obviously easily win the play-off and then they’ll be in the round of 16.
“They could easily have four more Champions League games. That’s clearly going to generate good revenue. It’s a big burden on the squad. Those games are coming thick and fast, and they’re going to be before the end of March.
“It’s not so much under the UEFA rules. They’re slightly restricted because they will have failed football earnings for last season, so I think there will be some kind of settlement agreement.”
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Borson also insisted that Newcastle must pick up the pace in the Premier League to avoid further difficulties down the line. He added: “They’ve still got the second leg in the Carabao Cup, so they might still have a Carabao Cup final. They’ve got to do something in the league.
“The league is going relatively badly. I think that’s a lot to do with the squad and a slight lack of investment versus what they could do.”