Kieran Maguire has dropped a promising claim on Financial Fair Play (FFP) if the proposed takeover of Newcastle United does end up going through.
The Lowdown: Claims launched
Mike Ashley has launched two separate claims against the Premier League over the failed takeover deal between him and the Kingdom of Saudi Arabia (KSA) group.
Are the Premier League to blame for the Newcastle takeover collapse?
One is the main arbitration case, which is set to take place over the coming months, and the other is an anti-competition lawsuit over the English top flight’s decision-making process over the failed bid.
The Latest: FFP claim
Speaking to Football Insider, Maguire, who is an expert in football finance, has claimed that the St. James’ Park faithful would not be ‘shackled’ by FFP initially if the takeover did go through, and added that they would ‘be able to put their foot on the gas’ in terms of spending:
“I don’t think Newcastle would be shackled (by financial fair play) initially. That’s because, for all his faults, Mike Ashley will leave behind a company that has a lot of wiggle room in terms of FFP.
“If somebody does take over at Newcastle, they will be able to put their foot on the gas in terms of spending.
“They have that flexibility because you’re allowed that loss of £105million under FFP over three years.”
The Verdict: Promising
It is certainly promising to hear that the North East club would not have to worry too much about FFP initially if they were to get taken over by the KSA consortium.
The new owners will want to climb up the table in the Premier League as soon as possible and mix it up with the division’s elite in terms of financial power, and so while it is important for them to keep within FFP, they will still want to flex their muscles in terms of spending.
Nonetheless, a positive result in the arbitration hearing for the Tyneside club could accelerate the takeover process, but due to the timing, it is likely that any changes in financial strength would not be seen until the January transfer window, assuming that a deal could then be completed after proceedings.
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