The 'Newcastle tax' is a phrase which has frustrated both the club and fans on a regular basis in recent months. The overnight transformation from frugal spenders into ambitious investors has led sellers to place an opportune premium on transfer targets.
The Magpies were forced to stand firm in their protracted pursuit of Sven Botman, with Lille reportedly attempting to raise the future Toon defender's asking price late in the day. Hugo Ekitike ultimately plumped for Paris Saint-Germain, but United had already stepped away from the deal due to the demands made from the forward's agent.
Newcastle's owners sanctioned a January spending spree in excess of £90 million, and deals for Botman, Nick Pope and Matt Targett will likely still be followed by at least one attacking recruit by the deadline next month. However, the richest club in the world moniker is one which Eddie Howe confirmed has inevitably resulted in 'elevated prices'.
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The Magpies head coach recently stressed this interpretation does not match the current reality at St James' Park, where the new owners remain wary of complying with financial fair play regulations. United currently lack the commercial agreements to allow the club to invest even greater sums, and this topic has once again been raised in the current stand-off over James Maddison.
Newcastle have seen two bids rejected by Leicester City for the one-cap England international, and are now mulling over their next move. Maddison has two years left on his deal at the King Power Stadium, and has attracted attention from Arsenal and Tottenham after enjoying the best season of his career to date.
Conflicting reports has muddied the actual total of the Magpies' second offer, but there is said to be considerable distance between the clubs over their valuations. The Foxes are reportedly holding out on a £60 million asking price, with Brendan Rodgers outlining their determination not to allow rivals to take advantage of their financial predicament.
Given both of Newcastle's offers are said to have been in the region of £40m with add-on clauses, it seems unlikely they will hike a future bid to bridge the sizeable difference. Unless a compromise is reached, Howe will have to move on to another attacker despite his admission this week that they are working with a 'small pool' of targets.
It is a stance which has evidently left some supporters to question whether Newcastle are being unrealistic with their valuations. It also stands as further proof of co-owner Amanda Staveley's warning in March that the club would not be held to ransom in the transfer market.
Reflecting on the owners' lofty ambitions, she told Financial Times Business of Football Summit: “That needs a lot of investment. We are not saying we are going to spend silly money. We are not.
“I hope that in the next transfer window people will see we are not going to overpay for players or assets. If people think we will spend silly money, we will not.”
When it comes to the Maddison debate, 'silly money' is clearly a very subjective phrase. Newcastle are prepared to make the attacking midfielder their record signing, while Leicester's desire to keep the player with just two days left until the season starts reflected in their own valuation.
There is a sheer multitude of factors which goes into the calculations behind a transfer fee. It is why Jack Grealish moved for a British-record £100m fee last summer, and yet Raheem Sterling was available for just £47.5m a year later.
Maddison has two years left on his deal, which makes this window Leicester's final chance to cash in for maximum value. It also means Newcastle and any other interested parties could decide to play the waiting game and hope for a cut-price deal in January or even next summer.
United's approach in the transfer market so far since the takeover has been praised by commentators and fans alike, with a stubborn refusal to splurge on mercenaries or inflated deals. However, the 'small pool' the Magpies are now looking to operate in comes with a premium of it's own regardless of a 'Newcastle tax'.
Maddison registered 30 goal contributions in all competitions last season, and has scored at least six times in each Premier League season so far with the Foxes. To put that into perspective, this output last term dwarfs the collective return from Miguel Almiron, Ryan Fraser, Jacob Murphy and Allan Saint-Maximin.
Quality nearly always comes at a cost, and there is no dispute Maddison represents a significant upgrade on all of the Magpies' current creative options. This steadfast refusal to overpay and extract the very best value is admirable and there could yet be better deals on the table elsewhere, but this stance will continue to be tested as Newcastle continue to target bigger and better players.
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