Newcastle United have reduced the club's wage to turnover ratio considerably - but the Magpies still have to be 'really careful' with contract renewals.

It is approaching three years now since former owner Amanda Staveley admitted Newcastle's salary to revenue ratio was 'probably too high'. However, according to Deloitte, this figure has fallen from an eye-watering 95% in 2022 to 75% in 2023 and, finally, 68% in 2024 as the club's income streams have grown.

Why is that important? Well, UEFA will limit the spend of clubs competing in Europe to 70% of revenue from next season and the Premier League are currently trialling their own squad cost regulations, which will align with UEFA's.

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No wonder Eddie Howe has stressed Newcastle have to be 'really careful' with contract renewals as each new deal has a 'knock-on effect' at a time when the Magpies' revenues still pale in comparison to the established order. Although Newcastle have a lower wage bill than their rivals - eight top-flight sides spent more on salaries when Howe's team qualified for the Champions League a couple of years ago - Chelsea (72%) and Aston Villa (96%) are the only Premier League clubs to have a higher wage to turnover ratio than the black-and-whites in Deloitte's Money League.

It is important to stress that Aston Villa will benefit from playing in the Champions League, and the additional sums awarded for finishing in fourth place last season, but football finance expert Kieran Maguire has warned the Villains' ratio is 'not sustainable in the long run'.

"It looks as if the Premier League from next season will say those clubs who will qualify for Europe can only spend £70 on wages and amortised transfer fees for every £100 that's generated through TV, match day ticket sales and commercial deals," he told Sky Sports. "I think Aston Villa are in a slightly stickier wicket and we saw that with some of their transactions over the course of last summer. Similarly with Newcastle. You can't spend that level of money on a long-term basis."