Newcastle United will be among those clubs who will have to take 'strong medicine' if they qualify for Europe in the coming seasons as UEFA prepare to implement new financial sustainability regulations.
Although Newcastle are, obviously, not yet competing in Europe, that is the dream of the club's owners and it could soon be realised with the Magpies currently in fourth place in the table. However, playing in the Champions League, Europa League or Europa Conference League would see Newcastle bound by UEFA's financial sustainability regulations as well as the Premier League's profit and sustainability rules.
Newcastle, as a result, would have to comply with UEFA's squad cost rule, which is gradually being enforced in the coming years. Clubs will be able to spend 90% of club revenues on wages, transfer fees and agents' fees next season, but this figure will fall to 80% in 2024/25 before finally being capped at 70% from 2025/26. That is why boosting revenues has never been more important for Newcastle at a time when Financial Fair Play, clearly, is far from dead after the Premier League charged Man City with more than 100 alleged breaches.
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In the latest UEFA club licensing benchmarking report, president Aleksander Ceferin said the governing body and its member associations must 'remain vigilant and strictly implement the rules of financial sustainability', and these were words echoed by Andrea Traverso, UEFA's director of financial sustainability and research.
"The imminent implementation of new financial sustainability regulations is timely and clearly required," Traverso wrote. "These should force clubs to better plan their squad strategy in the future as well as their debt structure. Failing which, clubs risk to incur strict penalties.
"The medicine is strong, but the current financial context demands a well-balanced but firm intervention from all stakeholders. Harmonised approaches at international and domestic level are strongly encouraged in order to limit imbalances and overspending and to promote solidarity."
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