In the event that a new luxury tax is approved by the Premier League, Newcastle United’s owners may add “rocket boosters” to their transfer budget.
That’s the opinion of financial analyst Kieran Maguire, who discussed the effects of new rules at St. James’ Park exclusively with Football Insider.
The Daily Mail stated that the Premier League is thinking of doing away with point deductions in favor of a luxury tax.
Top-tier teams might decide to spend more than they had to under the new arrangement, but doing so would come with a tax that would be shared by all the clubs in the division.
If the regulations were implemented, Newcastle’s Saudi Arabian owners, PiF, who are reported to be worth over £600 billion, would have the freedom to spend far more than the current PSR caps.
Under new Premier League regulations, Newcastle United can access Saudi riches.
According to Maguire, Newcastle’s ban on spending as much as Chelsea and Manchester City after their takeovers is “harsh,” thus the luxury tax would be well-received on Tyneside.
“Roman Abramovich gave Chelsea the freedom to spend as much money as they wanted when he first came,” Maguire said to Sean Fisher of Football Insider. “This is one of the grievances that Newcastle supporters have.”
“Sheikh Mansour and Manchester City were in the same boat.
“It seems harsh that Newcastle are being penalised for being in the same situation but at the wrong time compared to those two other clubs.
Accordingly, the owners of Newcastle would be able to add rocket boosters to their budget thanks to the new luxury tax idea.
“The main question for me is whether they believed that the tax rate was worth paying. A lot would depend on that.”
