Newcastle’s January budget to be decided this week as Howe eyes three transfers
Newcastle United intend to back Eddie Howe in the January transfer window – but he faces a season-defining fortnight with largely the same squad that has appeared stretched to breaking point recently.
Two damaging away defeats, including an insipid loss at Tottenham Hotspur on Sunday, betrayed signs of fatigue in a squad that has been hit by 14 injuries to first-team squad members since their Champions League campaign began in September.
But there were also wider questions for Howe about away form that has seen them pick up just five points all season and look strangely vulnerable in comparison to how resolute they are at St James’ Park.
There is little time for introspection or for the crop of injured players to return. AC Milan arrive at St James’ Park on Wednesday for a defining game in their European quest – better Paris Saint-Germain’s result at group leaders Borussia Dortmund and they are in the last 16 of the competition. Lose to Stefano Pioli’s side and they will fail to even make February’s Europa League play-offs.
Howe has struck the right message in public – that injuries are no excuse for his squad to drop their standards – but privately there is an acceptance that given the number of long-term injuries they have the squad needs support.
While Howe remains tight-lipped on the prospect of incoming transfers in the new year, i understands that the club have held recruitment meetings in recent weeks and they intend to explore their options in January.
Manchester City’s Kalvin Phillips is a priority target, although they face competition for the England midfielder. Juventus are among the clubs interested in him.
Nick Pope’s long-term injury has added goalkeeper to a list that includes a midfielder and potentially a younger forward who can supplement an attack that has scored just once in their last four away games.
The club are also considering recalling 19-year-old Gambia international forward Yankuba Minteh from his loan spell at Feyenoord in January.
Newcastle fans can likely expect a downbeat message in public, with caveats about Financial Fair Play (FFP) restrictions squeezing their budget, but there is a recognition that Howe needs help to maintain the high intensity style that has become their identity.
Football finance expert Kieran Maguire has told i Newcastle could spend £30m on a player “without it touching the sides” of their FFP limits.
He believes the club will not want to signpost their intentions for fear of encouraging rival clubs to apply a “Newcastle tax” to players they are keen on.
“What Newcastle are doing is their best to ensure is that there’s not a Newcastle tax getting charged by other clubs,” he said.
“If they’re seen as having lots of flexibility that could happen, and clearly from a cash point of view there’s no restrictions on them, so the only restriction is Financial Fair Play.
“It makes sense to get the message across that they’ve got to go ‘one in, one out’ and have to be cautious from a wage bill perspective. It’s like financial game management.
“The wages did shoot up in 2021/22 and were 95 per cent of revenue but the income in 21/22 was £180m and that will be closer to £250m this season.
“They probably need to shift a player or two out or get some out on loan but I don’t actually see a major issue in terms of ability to recruit, it’s about buying the right type of player.”
Sources suggested to i Wednesday’s outcome could impact their planning for January, with staying in Europe a selling point to potential recruits. And Maguire says it has the potential to shape the size of the budget.
Given amortisation – the process of writing off the cost of big signings over the course of their contracts that is used as part of FFP calculations – a £30m signing on a five-year contract would only go on the books as a cost of £6m for the 2022/23 season. Signed in January, they would only cost £3m a year.
“The difference between finishing fifth and sixth is the thick end of £3m so there’s a great chance to recover that,” Maguire said.
“Newcastle are clearly going to finish in a decent position and you have the merit payments on the back of that.
“It would be fantastic if they get through to the knockout phases of the Champions League because again they’ll recover £7m or £8m for doing that. I don’t see them being in an awkward position.”
