UEFA to Impose Heavy Monetary Penalty on Newcastle United for Violation of Spending Regulations, Despite the Sale of Alexander Isak, According to Reports
Newcastle United Faces Financial Penalties for Breaching UEFA's Financial Fair Play Regulations
Newcastle United, the English Premier League club, is set to face financial penalties from UEFA for breaching the Financial Fair Play regulations. The club's financial situation has been under scrutiny, with previous sanctions handed down to Aston Villa and Chelsea serving as precedents.
The Champions League allows clubs to lose half of what they can in the Premier League over a period of three seasons, amounting to £52m instead of £105m. However, Newcastle's financials indicate they could exceed this limit, leading to potential fines or sanctions totalling several million euros.
The Athletic reports that Newcastle has 'comfortably breached' the UEFA loss limit, a claim supported by the club's pre-tax loss of £38m submitted for the 2023-24 season. This significant loss was a result of heavy spending on the squad before the 2022-23 season.
The £130m fee recouped from the sale of Alexander Isak to Liverpool will help mitigate the strength of the financial sanction imposed upon Newcastle. However, this sale will be taken into account for the 2022-2025 period, but Newcastle is unlikely to report the profit to UEFA as one lump sum.
The losses incurred in the two previous seasons may also contribute to a financial penalty for breaching UEFA's spending rules. Notably, the profits from the sales of Allan Saint-Maximin to Al-Ahli and Elliot Anderson to Nottingham Forest are not included in Newcastle's financial reporting to UEFA. The sale to Al-Ahli is considered between related parties, while the deal with Nottingham Forest was regarded as a swap.
It's important to note that both Newcastle United and Al-Ahli are owned by the Saudi Arabian Public Investment Fund.
Despite the anticipated financial penalties, Newcastle's financials are expected to improve in the 2024-25 accounts due to increased revenues. This improvement could potentially lessen the impact of the penalties.
Newcastle United is subject to financial controls imposed by UEFA due to their participation in the Champions League. The club has previously faced financial sanctions, and this latest potential penalty serves as a reminder of the importance of adhering to UEFA's Financial Fair Play regulations.
Chelsea and Aston Villa have already faced the consequences, with Chelsea fined an immediate £27m by UEFA this year for violating financial rules, with the possibility of an additional £52m in penalties if they do not comply with the terms of their four-year agreement with the Club Financial Control Body (CFCB). 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.
As the situation unfolds, Newcastle United will work towards addressing these financial concerns and ensuring compliance with UEFA's regulations to avoid any further penalties in the future.
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