UEFA have elaborated on the new squad cost rule that looks set to influence Newcastle United's transfer plans in the years to come.
UEFA's reformed financial sustainability regulations will come into force in June. Clubs competing in Europe are now permitted to make losses of £49.96m (€60m) over a three-year period, which is double the previous figure.
However, the new squad cost rule will, eventually, limit the amount that can be spent on wages, transfers and agents fees to 70% of overall revenue and any breaches will lead to pre-defined financial penalties. The new regulations will be gradually implemented over the course of three years so, theoretically, clubs can spend 90% of income in 2023-24, 80% in 2024-25 and, then, finally, 70% a year later.
