Newcastle United’s interest in a move for Michael Olise has the Magpies faithful purring at the prospect of such an exciting and bold summer arrival – but can Eddie Howe’s side afford such a lavish signing in the days of profit and sustainability rules?
In short – yes – but there are a lot of moving parts when it comes to Newcastle’s financial capability in the next few months. Given Olise will likely cost any suitor £60m+ this summer, it won’t be an easy deal to pull off for even the biggest clubs.
Newcastle and their Premier League rivals’ financial concerns have been well-documented. No new senior stars arrived at the club in the January transfer window, while very limited business was conducted across the entirety of the top flight as restraint was used in light of Everton and Nottingham Forest’s financial punishments. July 1st and the subsequent start of a new financial year for clubs will likely see a spending increase.
While Newcastle continue to be told how much they must watch their finances, there is money to be spent on Tyneside this summer. Revenue from a short stint in the Champions League has bolstered any kitty at St James’ Park, while the arrival of Adidas and other big-name sponsorship deals will unlock the potential to bring in fresh faces.
Newcastle have significantly improved the amount of money they are bringing into the club through various channels and last year’s accounts, which do not include Champions League and Adidas bonuses, showed that revenue was up 39 per cent for the 12 months ending 30 June 2023. £250.3 million was generated in the 12 months in question, up from £180 million the previous year, as matchday, commercial, and media rights revenues all increased.
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While Howe himself insists it is impossible to put a figure on his exact transfer budget this summer, he is expecting to be backed in the market – as he has been in almost all other windows since arriving in the north east. Alexander Isak and Sandro Tonali have been the marquee signings of the last two summers, while Sven Botman, Tino Livramento, Harvey Barnes and Nick Pope have previously arrived during the off-season in recent years.
The biggest signing of this summer this time around will almost certainly be a right-winger. With Anthony Gordon cementing his spot on the left and Isak proving lethal through the middle, Howe wants a star signing on the right to enable him to field a devastating front three when all are fit.
That will likely mean an exit for either Miguel Almiron or Yankuba Minteh, with the Magpies open to offers for both players. Almiron penned a new deal back in 2023 and still has two years to run on his contract. He is seen a sellable asset this summer, with Newcastle likely to be able to recoup most, if not all, of the £21m they paid for him back in 2019.
Minteh was purchased 12 months ago for a fee of £6.5m but is yet to kick a ball in black and white. A strong loan spell in Feyenoord has boosted excitement and raised his profile but a substantial offer this summer will present Newcastle with the opportunity to make some profit at a crucial time.
Other first-team regulars, many who Howe wants to keep, may also be shown the door as Newcastle’s revamp begins. Kieran Trippier and Callum Wilson were two players who attracted interest in January but ended up staying put. Similar interest in this window may result in a different outcome.
Martin Dubravka, Matt Targett, Harrison Ashby, Sean Longstaff and Jamal Lewis could also be sold to free up funds for spending and salaries. There is also hope Isaac Hayden and Ryan Fraser will be offloaded in the coming weeks.
Amortisation will play a big part in Newcastle’s dealing, with a £60m arrival on a five-year contract only going down as a £12m charge in each annual account. On the flip side, if the club sell a homegrown, academy graduate they can record the entire figure in the yearly accounts as a pure profit transaction.
Newcastle have also been on the hunt for smart and shrewd signings to kickstart the window and free up funds elsewhere. The free transfer of Lloyd Kelly ticks a number of boxes, both on the pitch and financially. A move for Tosin Adarabioyo would have been equally positive before he opted to join Chelsea on a free.
As for Olise, the Crystal Palace winger, 22, is on the radar for a number of European heavyweights such as Bayern Munich, Chelsea and both Manchester clubs. Newcastle, as such, are fighting an uphill battle to win the race.
Reports suggest Olise’s contract includes a Champions League clause, which offers hope to Newcastle’s rivals. Meanwhile, Chelsea agreed personal terms with the player last summer before a move broke down and he stayed put at Crystal Palace.
There is no question a signing of this magnitude would be a game-changer for Newcastle. The funds are there to be spent but it is likely to require first-team exits, a seriously strong sales pitch and a bit of luck.
That won’t stop Newcastle fans getting excited over the prospect of Olise in a black and white shirt.