{{primary_category}}
{{/primary_category}} 
Newcastle £50m plan revealed as PiF 'stretch to the limit' - 'their rise to the top is inevitable'
Introducing a £50million cap on associated party transactions will only slow the “inevitable” commercial growth at Newcastle United.
That is the view of finance expert Dr Dan Plumley, who spoke exclusively to Football Insider about how the newly proposed Premier League plans would affect the Magpies.
Football Insider sources revealed last Wednesday (11 January) that Premier League clubs want to impose an annual £50million cap on related-party transactions.
The idea behind the proposal is that Gulf-state-financed clubs such as Man City and Newcastle are using sponsorship deals with businesses in their owners’ portfolios to generate commercial revenues.
Such revenues would then allow the clubs to work around Financial Fair Play regulations and continue investing in their squad.
Man City’s ongoing deal with Etihad Airways is a prime example, with the Premier League champions pocketing £67.5million per year from the Abu Dhabi company.
Get Exclusive transfers news at Football Insider's YouTube TV channel
Plumley believes a £50million cap per team would be a bump in the road for Newcastle but believes PIF would find ways to work around it and grow the commercial interest in the club.
“Even if a £50million limit was introduced, Newcastle would still use it to push up into the heights of the Premier League more than they were able to do under previous ownership regimes,” Plumley told Football Insider’s Adam Williams.
“But it does put a ceiling on it, whereas if there wasn’t a limit PIF would have stretched it as far as possible.
“I think a ruling like that would make it more difficult but not impossible for Newcastle to grow commercially.
“Newcastle will instead just branch out to other commercial markets which was probably part of their long-term plan anyway.
“So it’s a financial bump in the road but not something that will ultimately be a roadblock for them.
“It slows them down and they’ll have to realign, but Newcastle’s financial growth and rise to the top is inevitable.“
In other news, Newcastle United tipped to complete Conor Gallagher signing after Chelsea twist