Newcastle United's owners have been praised for their handling of PSR restrictions. While some Toon fans have aired frustration over what may be yet another transfer window without any upgrades to the XI, they are being urged to look at the bigger picture, namely this summer.

Speaking on The Everything is Black and White Podcast, our chief business of football writer Dave Powell heaped praise on the Public Investment Fund and Jamie Reuben for playing the window 'smartly', helping to set the club on the pathway of long term sustained success.

"There's been a lot of good work done in this past financial year to enable Newcastle to come to a position of strength," Powell told podcast host Andrew Musgrove. "Now there's some chatter that they will be a small profit made - there is a potential for that.

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"They did very well in commercial deals and done well in terms of player trading in the 23-24 accounting period, and all this is important because it impacts what their three-year cycle will look like.

"Now we're entering the final year of PSR, so that will be accounted for with this three-year cycle. So for Newcastle it's important because they made a heavy loss in their two consecutive years, around £73million, but one of those will drop off.

"If they can make a small profit in 23-24, which they've got a good chance of, then all they have to contend with is that £73m from 22-23, and another loss for 24-25 but there are some projections that it [the loss] could be more than £80m and they would still be within the realms of PSR.

"The problem the club has is they don't want two years of inactivity in the transfer market - so this coming summer they will want to try and put themselves in a position of strength. I think that's what they've tried to do over the past 12 months or so - they've tried to address the balance sheet, and increase the headroom and they have without having to sell their best assets.

"They've not had to sell anyone yet. Newcastle don't want to be that club which is bringing players on to sell - they want to be the destination not part of the journey.

"In terms of finance and PSR, the owners have played this smartly and in the best way to achieve long term success as opposed to what we've seen at other clubs where they've spent heavily and hope the competitive success follows.

"This is a long game for the PIF at Newcastle - this isn't looking at this season or next season, this is trying to make Newcastle a force to be reckoned with for years to come.

"We have seen clubs previously - Man United for example - who have spent frivolously over the past 10 years and achieved very little. It's a testament to poor recruitment, poor efficiency and wasted money. From Newcastle United's point of view I don't know whether it would have been wise for them to do so (spend big and risk a PSR penalty) - this is a long term game. They wanted to get their balance sheet in a healthier position to be able to invest this summer."

The changes to financial rules will come into play in the summer with PSR being changed to squad cost ratio calculation - which will be at 85 per cent but that will drop to 70 per cent for clubs competing in Europe. There is debate to just how much the changes will benefit Newcastle but there is belief from some that it could loosen the purse strings.

"When they get to the changeover of rules from PSR to the squad cost ratio, which is going to be revenue against amortisation costs, wages, severance pay, player agents money," added Powell. "They will want that ratio to be in line with what the Premier League want so they can invest to a greater extent which they will be able to.

"It's been a very, very challenging period for the PIF coming into Newcastle wanting to spend having the money to spend but not being able to because of the rules and regulations surrounding that which would, you know, see them docked points.

"The new rules won't change the dynamic completely because everyone's revenues remain the same. You still have to grow revenue to spend. The onus is on you to still to manage the wage bill and keep commercial revenue rising and match-day revenue rising."

Powell added: "When you've got Manchester United planning a 100,000-seater stadium, which might increase their matchday revenue by as much as £90m-£100m in years to come, the challenge is there for everyone.

"But for Newcastle, the most obvious way to to improve that position is through player trading and also competitive success."

Asked if Newcastle's owners will welcome the change from PSR to the squad cost ratio rules, Powell added: "Yeah, definitely. The last two years have been really good work from the club to ensure they didn't get carried away from the Champions League.

"It was a great season to qualify but too much needed to be done in terms of spending to turn that Champions League qualifying side into one that qualified the following year - there were significant additions that were needed around the edge.

"It was a poor year for some clubs which had to be taken into [when they qualified] - and it was a wise move [not to overspend two summers ago] but I know people want to build from a position of strength, yet Newcastle haven't fallen away.

"Last season was a bit more of a struggle but this year they look good again - they look like a club that has stability and that isn't commonplace in the Premier League. This summer we'll start to see the wheels turn again after a couple of summers of inactivity. I'm not saying it's going to be go out and spend frivolously but the idea is to keep the best players and invest."

You can listen to the full episode with Dave Powell by clicking here. Or watch it via YouTube here.