Newcastle United are gearing up for a crucial January 2025 transfer window, with an anticipated budget of at least £65 million.
This sum represents the amount rejected during the summer bid for Crystal Palace defender Marc Guehi.
A renewed push for Guehi remains on the table as Eddie Howe’s team seeks to bolster critical positions, including right-wing and centre-forward roles.
However, their spending strategy is constrained by the Premier League’s Profitability and Sustainability Rules (PSR).
Eddie Howe has emphasized how PSR limits Newcastle’s financial leeway, especially after Anthony Gordon’s new contract significantly increased the club’s wage expenses.
Major investments at this stage could impact their financial standing over the next three years, requiring careful deliberation for every transfer deal.
“Firstly, I don’t think any bid (for Guehi) reached that level (£65m),” said Howe.
“That is far in excess of what the reality was. Secondly, with PSR, there is no pot of money that we have sitting there waiting to be spent.
“It’s all about trading in and out and making sure at the end we comply with PSR, and that is the first port of call with us as a football club. We have to comply, as we did last year.
“Then, of course, we are looking to improve the squad at every opportunity we can and there is a determination from everyone at the club to do that. So, it’s about getting that balance right.”
Newcastle’s approach to transfers has evolved, with no fixed “pot of money” assigned to specific windows.
Instead, spending is assessed individually, balancing immediate needs with long-term sustainability.
Howe, who recently led a warm-weather training camp in Saudi Arabia, used the trip to discuss January targets with club executives and fulfil commercial obligations for Newcastle’s Middle Eastern backers.
Since the appointment of Paul Mitchell as sporting director in 2024, the Howe-Mitchell dynamic has drawn scrutiny.
While reports suggested initial tensions, the pair are said to have worked effectively in recent months.