Newcastle United owners' desire to secure the 'best' sponsorship deals is going to be all the more important after UEFA introduced new financial regulations.
The UEFA executive committee approved new financial sustainability regulations at a meeting in Nyon last week in the first major reform of the rules since they were first introduced in 2010 to prevent clubs spending beyond their means. Clubs are now allowed to make losses of £49.96m (€60m) over a three-year period, as opposed to £24.98m (€30m), but the impact of the new squad cost rule will, perhaps, be felt the most. This will eventually limit the amount spent on wages, transfers and agents fees to 70% of club revenue.
The new regulations will come into force in June, but they will be gradually implemented over three years to give clubs time to adapt so, in theory, clubs will be able to spend 90% of income in 2023-24, 80% in 2024-25 and, then, 70% a year later. Assessments will be performed on a timely basis and UEFA confirmed that any breaches will lead to 'pre-defined financial penalties and sporting measures'.
