UEFA set to impose substantial financial penalty on Newcastle United due to overspending violations, even amidst the sale of Alexander Isak, according to a recent report.
Newcastle United Braced for Potential Financial Penalty
Newcastle United, currently competing in the Champions League, is facing a possible financial penalty due to a suspected breach of UEFA's spending rules. This potential sanction comes as a result of substantial losses incurred during the 2022-23 and 2023-24 seasons.
The club's financial situation has been strained, with a pre-tax loss of significant proportions reported in their 2022-23 accounts, largely due to heavy spending on their squad. The projected loss for the 2023-24 season stands at £38m.
The Premier League allows clubs to lose up to £105 million over three seasons, but the Champions League imposes stricter financial controls. UEFA's loss limit for clubs in the Champions League is halved compared to the Premier League, at £52m. Given the losses incurred, it is likely that Newcastle United will face a fine for breaching these rules.
The exact size of the fine has not been publicly disclosed, but the £130m fee recouped from the British record sale of Alexander Isak to Liverpool will help in lessening the strength of the financial sanction imposed upon the club.
Interestingly, the sale of Allan Saint-Maximin and Elliot Anderson to Al-Ahli and Nottingham Forest, respectively, cannot be included in Newcastle's financial calculations due to the specific circumstances of the transfers. In the case of Saint-Maximin, the sale is not included because both clubs are owned by the same entity (Saudi Arabian Public Investment Fund). Elliot Anderson's transfer to Nottingham Forest is considered a swap deal by UEFA, with goalkeeper Odysseas Vlachodimos moving the other way.
Newcastle United's financial woes are not unique. Aston Villa was fined £9.5m by UEFA earlier this year for violating financial rules, and could face a further penalty of up to £13m if they fail to comply with their three-year settlement agreement. Chelsea was fined an immediate £27m by UEFA and could face an additional £52m in penalties if they do not adhere to the terms of their four-year agreement with the Club Financial Control Body (CFCB).
The upcoming season may present challenges for Newcastle United as their financial situation may limit their ability to maneuver. However, the club will continue to navigate these challenges, aiming to maintain their position in the Champions League and beyond.
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