Kieran Maguire predicts Newcastle could take extraordinary ‘£1bn’ transfer ‘Gamble’

Newcastle United could theoretically spend “£1billion” on transfers in the current financial fair play cycle.

That is the view of finance expert Kieran Maguire, speaking exclusively to Football Insider about the Magpies’ transfer market prospects.

Newcastle are officially the world’s richest club following their takeover by the Saudi Arabia Public Investment Fund on 8 October.

But the new owners must traverse financial fair play restrictions before they are able to lavish their extraordinary wealth.

Former owner Mike Ashley has left Newcastle in an enviable position when it comes to profit and sustainability controls.

And Maguire explains that the practice of amortisation means the Magpies may be able to spend more than first presumed.

He told Football Insider correspondent Adam Williams: “They can theoretically spend a lot more than £200m in this FFP cycle.

“If you think about it, that £200m figure is coming from a broad FFP profit of £100m to an FFP loss of £100m.

“But you have to take into consideration amortisation. If you spend £100m on players and they’re all on five-year deals, only £20m of that goes towards FFP.

“This is where the likes of Simon Jordan have come up with this £1billion figure. Although, that isn’t taking wages into account.

“But you could spend £1bn and only £200m of that would count towards FFP in a single season.

“So you’re taking the gamble that your income is going to increase over the amortisation period so you don’t fall foul of FFP.”

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