Newcastle furious as 'Saudi tax' blocks early signings - Report

For several years now, Newcastle United have faced the common misconception that we have a massive pot of money to spend because of our hugely rich and powerful Saudi owners.

PIF is among the largest sovereign wealth funds in the world, with total estimated assets of over £500billion. However, in the world of PSR, that has very little bearing on what Newcastle can actually spend on transfers.

It's been a frustrating start to the summer. It's only a week old, so there should be no sense of panic at this early stage, but The Telegraph have released an in-depth piece on our behind the scenes frustrations.

Newcastle hit by 'Saudi tax' again?

According to Luke Edwards' latest exclusive for The Telegraph, Newcastle are growing increasingly frustrated at the 'Saudi tax' attached to any deal they are trying to complete.

The report states that negotiations to sign certain targets in the opening week of the summer window have proved difficult, as rival clubs are demanding overly inflated fees.

Newcastle are attempting to explain the common misconception around our spending power - we do not have an endless pit of money via PIF and PSR has also worked against us - but it seems extortionate fees continued to be slapped on leading targets.

Edwards explain that Newcastle want to bring in a quality goalkeeper, centre-back and right winger this summer, alongside a striker to compete with Alexander Isak.

However, with the figures quoted, the club are in a tricky situation. Four priority positions must be addressed and quality additions are wanted to take us to the next level, but our PSR situation, although improved, will not allow us to spend massive sums of money in each area.

Mbeumo situation explained

In that same piece, Edwards explain why Newcastle were unable to pursue a deal for Bryan Mbeumo.

He insists that the Cameroonian winger was 'universally liked' by all members of the club's recruitment team and considered a leading target.

However, with Brentford demanding in excess of £60m and the player's wages thought to be massive - reports this week suggest £250,000-per-week - Newcastle felt it did not make financial sense.

Had he signed on those terms, The Telegraph report that he'd become the club's top earner, which would not only set a dangerous precedent for future targets, but also see current players demand a pay-rise.

My thoughts are that a 'Saudi tax' may remain, but the club aren't helping themselves if they are hellbent on signing Premier League players. You immediately pay a premium for these, even before any 'Saudi tax' and we already know that our rivals won't do us favours, increasing the need to explore a European market that's been fruitful for us whenever we've dipped in, with Isak, Bruno, Tonali and Botman prime examples.