Alexander Isak has been priced out of the reach of Newcastle United’s Premier League rivals Liverpool, with the Magpies’ internal transfer discussions centring on adding another striker rather than cashing in on their prize asset.
There is an irony that the Premier League’s profitability and sustainability rules (PSR) – which have held Newcastle back in their attempts to build a squad deep enough to consistently challenge for honours – will almost certainly prevent Liverpool and Arsenal from formalising their interest in the Sweden forward this summer.
Speculation around Isak has been almost constant for the last year, but even the top Premier League clubs are now looking elsewhere given their belief that Newcastle’s valuation is around £150m for Isak.
The Magpies intend to reopen contract talks in the summer and are confident that Isak, who has three years remaining on his existing deal and has not agitated for a move, will be satisfied by their ambitious recruitment plans.
Liverpool and Arsenal are now actively looking at alternatives, having come to the conclusion Isak was effectively “untouchable”. Part of the reason is that his valuation would obliterate any PSR headroom.
Salah has committed his future to the Premier League champions (Photo: Reuters)
Liverpool’s decision to commit significant funds to tying down Virgil van Dijk and Mohamed Salah to new contracts will have a big impact on their ability to broker big deals. But Bournemouth full-back Milos Kerkez is a £45m target.
“Liverpool are in decent financial shape but their ongoing commitments are significant. So I wouldn’t be expecting big, big acquisitions for Liverpool this summer,” explains Professor Rob Wilson, a football finance expert and programme director at the University Campus of Football Business.
“It appears to me they have backed themselves into an almost unmanageable corner with Van Dijk and Salah contract negotiations – they’re spending a huge amount on those two contracts which they can’t now re-invest in the playing squad.
“Those two players haven’t got any resale value, which may be a problem in two or three years. I’d estimate it’ll be net expenditure of £100m, perhaps, this summer which in today’s market requires smart investment.
“I don’t think they could afford Isak, PSR-wise, with the valuations Newcastle are looking at. It would blow the entire budget in one fell swoop if they did do it and that’s not something we’d associate with Liverpool’s approach.”
What does this mean for Newcastle’s summer?
Howe is in a ‘very tricky position,’ according to Professor Rob Wilson (Photo: AFP)Insiders say Newcastle’s own PSR issues have been significantly eased by the sale of Miguel Almiron and immediate permanent exit of Lloyd Kelly to Juventus, allowing them to invest in four or five signings this summer.
But for all the confidence that they have headroom to move for targets, it will be intriguing to see how director of football Paul Mitchell and manager Eddie Howe work together when restrictions on spending are loosened.
The i Paper can confirm Newcastle are in for Ipswich striker Liam Delap and Bournemouth defender Dean Huijsen, who have release clauses of £30m and £50m respectively.
Howe has previously placed a premium on Premier League experience, although sources have also suggested the idea that he only wants domestic-based targets is overblown. He championed the signing of Sandro Tonali from Milan, for example – and he has proved a huge success.
Newcastle are almost certain to dip into the overseas market again this summer, believing it offers better value. Lowering the squad’s age profile is also a target, Newcastle having renewed the contracts of most of the players coming to the end of their deals.
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Professor Wilson says Newcastle’s decision not to cash in on Isak means they will have to be strategic in the market – especially given the demands of playing in Europe next season.
“You either stick and move a couple of extended squad players out or you cash in on an asset and really give yourself some headroom,” he says. “I’m talking about Isak because his market value is very high. It’s not what people want to hear but the reality is you sell Isak for £120m or something of that order and you’re talking about bringing in three £80m players, potentially.
“The sale of one player can have a material impact on your entire squad but it’s a very tricky situation to be in because, financially, the Champions League is a game-changer in terms of revenue but it also puts demands on you. You have additional squad needs which cost money so there is a decision to be made.”
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