Newcastle United is set to outmaneuver fellow PSR-threatened side Everton in a crucial area.
Both clubs are urgently trying to meet the Premier League’s Profit and Sustainability loss limit of £105m over a rolling three-year period before the monitoring period ends on June 30.
One strategy they have explored is quasi-swap deals, where players are exchanged in separate transactions of roughly equivalent value to improve their financial statements in the short term.
Everton was supposed to acquire Newcastle’s Yankuba Minteh using this method, with Dominic Calvert-Lewin moving to St James’ Park in exchange. However, the deal collapsed because Everton wouldn’t budge on their £40m asking price for Calvert-Lewin, highlighting the desperation of both clubs to comply with PSR rules.
Currently, that is where the similarities between the two clubs end, as Newcastle’s recent on-field success contrasts sharply with Everton’s performance.
Everton is hoping for a turnaround under US billionaire Dan Friedkin, who is expected to take over the club after entering exclusive talks with Farhad Moshiri. However, recent analysis shows the two sides are vastly different in one critical metric.
**Newcastle to Surpass Everton’s Commercial Record**
Newcastle has a sophisticated commercial operation aimed at eventually tapping into the vast wealth of the Saudi Public Investment Fund. Everton, historically one of the top commercial earners outside the Premier League’s Big Six, has seen its status decline, especially after the departure of billionaire Alisher Usmanov, who had to cancel his commercial deals following UK sanctions against Russia.
Everton’s commercial revenue was still relatively high at £39m last season but has dropped from £79m in 2020, a record for a non-Big Six club. However, finance expert Swiss Ramble projects that Newcastle’s commercial income for 2023-24 will be £73.9m, a £27m increase from the previous season.
While this is slightly short of Everton’s record, Newcastle’s lucrative deal with Adidas and a new business agreement with BetMGM are expected to push their commercial revenue past £80m next season.
**Future of Quasi-Swap Deals**
Despite Newcastle’s rising commercial revenue, PSR issues remain, with five players potentially being sacrificed. The ability to conduct PSR-oriented swap deals will be crucial for both clubs.
Any regulatory changes in the Premier League require a two-thirds majority to pass, meaning a seven-club voting bloc could veto reforms. This could be advantageous for both Newcastle and Everton, allowing them to continue orchestrating these swap deals.
