David Hopkinson has set out his ambitions for Newcastle United after being appointed as the club’s new chief executive. Speaking at an ev...
David Hopkinson has set out his ambitions for Newcastle United after being appointed as the club’s new chief executive.
Speaking at an event last week, Hopkinson revealed he wants Newcastle to be in the debate about who’s the world’s top club by 2030.
Eddie Howe’s side have been restricted by the Premier League’s profit and sustainability rules (PSR) since Saudi Arabia’s Public Investment Fund (PIF) purchased the club in October 2021.
Although the squad cost ratio (SCR) system is set to be adopted from next season, Newcastle are expected to remain “disadvantaged” under the new rules.
Newcastle’s likely punishment revealed after financial breach
Former Man City financial adviser Stefan Borson exclusively told Football Insider Newcastle will breach Uefa’s spending rules, complicating Hopkinson’s plans at St James’ Park in the years ahead.
The Tyneside club’s finances will be assessed by Uefa this season after qualifying for the Champions League.
Speaking exclusively to Football Insider about Hopkinson’s ambitions, Borson said: “The reality is that PSR is an inhibitor for them. It’s a bit easier this season because they sold Isak at a big profit, so they’ve almost certainly got quite a lot of capacity on this season’s calculations.
“But on the flip side, going forward they’ve changed the rules. The rules don’t really work particularly well for Newcastle. Then on top of that, at the end of the season we are going to learn that they failed Uefa’s tests, so they’re likely to be in a settlement agreement with Uefa.
“They’ll pay a small fine, it’s not a big deal, but they’re likely to be in a settlement agreement with Uefa, which is going to restrict what they can do and is going to make them have to reach certain targets that are pre-agreed with Uefa.”
Uefa confirmed in July both Chelsea and Aston Villa had breached its financial rules.
Chelsea were fined £26.7m, while Villa received a £9.5m penalty, with further punishments on the cards if they fail to comply over the next few years.
Newcastle chief facing ‘another headache’ after Uefa reveal
Chelsea and Villa’s punishments related to a breach of Uefa’s football earnings regulations and the SCR rules, where clubs in European competitions were required to keep spending on player wages and fees to 80 per cent of their revenue in 2023-2024.
However, the control ratio dropped to 70 per cent last season and will remain at that level moving forward.
“It’s just going to be another headache for Newcastle over the next two or three years while trying to qualify for the Champions League and compete in the Premier League, which is a really difficult and complicated equation when the levers that they have to play with are very limited,” said Borson.
“It’s great ambition. We know that has to be the ambition for that club, but I think he says it more in hope rather than expectation.”
Newcastle smashed their club-record revenue in their latest published accounts for 2023-24 after their overall turnover surged to £320m, but their wage bill jumped to £219m.
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