Newcastle to blow Everton out the water with £80m PSR reveal as business deal done

Newcastle United are poised to one-up fellow PSR-threatened side Everton in one key area.

Both clubs are frantically attempting to get within the Premier League’s Profit and Sustainability loss limit, which stands at £105m over a rolling three-year period, before the monitoring period ends on 30th June.

One avenue both have explored is quasi-swap deals, with players exchanged in separate transactions for roughly equivalent value, boosting the books of both clubs – in the short term at least.

Everton were set to sign Newcastle’s Yankuba Minteh via this method, with Dominic Calvert-Lewin headed to St James’ Park in exchange.

That deal fell through because of Everton were unwilling to budge on their £40m asking price for Calvert-Lewin, but it does illustrate how desperate both sides are to get PSR compliant.

At present, however, that is about all the two clubs have in common, with Newcastle’s success on the pitch in recent seasons in stark contrast to Everton’s sporting performance.

Everton are hoping to turn a corner under Dan Friedkin, the US billionaire who is expected to take over the club after entering exclusive talks with Farhad Moshiri.

But the latest analysis shows that the two sides are currently poles apart based on one crucial metric.

Newcastle to smash Everton’s commercial record

Newcastle have a slick commercial operation which they hope will one day help them unlock the endless wealth of the Saudi Public Investment Fund.

Everton meanwhile have historically been one of the biggest commercial earners outside the so-called Big Six in the Premier League, although that status has been eroded in recent years.

That is due largely to the exit of oligarch billionaire Alisher Usmanov, who was forced to cancel his commercial deals with the club following UK sanctions against Russia.

Commercial revenue was still relatively high last term at £39m but has fallen from £79m in 2020, which remains a record for a non-Big Six club.

However, the latest analysis from world-renowned finance expert Swiss Ramble forecasts that Newcastle are coming for the Toffees’ crown in this area.

It is projected that Newcastle’s commercial income in 2023-24 will total £73.9m, a £27m upswing on the previous campaign.

That is still a few million short of Everton’s record, but Newcastle’s ultra-lucrative deal with Adidas, as well as today’s new business deal with BetMGM, will comfortably take them past £80m next term.

Will Everton and Newcastle’s quasi-swap deals be outlawed by the Premier League?

While Newcastle’s soaring commercial revenue will be hugely beneficial in the long term, they are still beset by PSR issues for the time being, with five players potentially being used as sacrificial lambs.

Whether they will be able to engineer PSR-oriented swap deals in the future will therefore be crucial, just as it will to Everton.

With the Premier League’s constitution requiring a two-thirds majority to pass any regulatory changes, a seven-club voting bloc could effectively veto any reforms.

That would be good news for both clubs, at least in terms of their ability to orchestrate these swap deals.