Journalist Chris Waugh has claimed that Newcastle can spend as much as £200m before they have to worry about the implications of Financial Fair Play (FFP).
The long-awaited takeover at St James' Park finally went through earlier this month, with a Saudi-led consortium taking over from long-standing owner Mike Ashley.
What's the latest news involving Newcastle?
Meanwhile, on the pitch, Newcastle have been struggling this season, and it seems that their new owners may have to spend big in the January transfer window to stave off the threat of relegation.
Waugh does not appear to think this will be a problem.
What has Waugh said about the money Newcastle can spend?
The Athletic correspondent has confirmed that he has spoken to a financial expert, and had it confirmed that the North-East club can splash out £200m on strengthening their squad prior to FFP kicking in.
Explaining the situation to GIVEMESPORT, he said: “The suggestion is that they could quite comfortably spend £200m before you can even really need to worry about FFP. Now that money does not include investment in infrastructure, or in the academy, or in the women’s team.”
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How much will Newcastle spend in January?
Newcastle's new owners will be wary of getting the balance right in the upcoming transfer window in January. The side needs to be improved sufficiently so that it can move clear of the bottom three, but it must also be factored in that bringing in a number of players midway through a season could disrupt the rhythm of the team.
Furthermore, the club will be aware that rival teams may try to make them pay over the odds now that they know how much money Newcastle have to spend. With this in mind, the Toon Army probably won't want to overspend on players, as this could set a precedent for future windows.
It seems that the most likely approach could be to spend around £50m, bringing in 3-4 players who can help the side stay up. As long as this is achieved, the team can then build from there, and start to move up towards the European places and beyond over the next few seasons.
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