Newcastle United and their 19 Premier League counterparts have all avoided breaching profit and sustainability rules [PSR] for the 2021-24 financial period. So, can the Magpies suddenly spend again?

Well, it's not quite that simple as the north east outfit attempt to navigate the current three-year period while also planning for the future. Eddie Howe is hopeful of being 'active' in this month's trading period but continues to stress that outgoings are needed to facilitate any exciting incomings.

However, Newcastle's financial picture is starting to look a lot healthier and the summer market could see a somewhat normal service resume in terms of first-team players being signed and a chunk of money being spent. That is because come July 1, when the new PSR period starts, Howe's side will have the £73m loss of 2021/22 wiped away from the three-year accounting balance sheets, leaving only the £73m loss from 2022/23 and the potential profit made in 2023/24.

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With recent reports suggesting Newcastle could make around £7m profit for the aforementioned 23/24 period, that, in theory, would allow the club to post an £84m loss in the current financial year and still fall within the £105m PSR limit. Newcastle aren't expected to post anywhere near that sort of loss, meaning the St James' Park decision makers will have significantly more headroom to spend.

That will open more doors for summer recruitment drives, in a window in which more attainable targets will be available and easier to purchase. This is before taking into account that Newcastle could sell some first-team stars in the coming months.

The likes of Miguel Almiron, Sean Longstaff and Kieran Trippier continue to be linked with exits, while there is a general understanding that selling a 'big name' would unlock significant spending power in the coming seasons. Bruno Guimaraes had a £100m release clause in his most recent contract extension as Newcastle battled to sell first-team players in the face of a PSR penalty. Elliot Anderson and Yankuba Minteh were the two to make way, while Howe's big hitters stayed put.

In terms of incomings, there is a belief inside St James' Park that the boss' starting XI can be strengthened in a few areas. Money was available last summer in the pursuit of Marc Guehi - a signing that would have led to a big sale being required - while exciting right-wing targets such as Bryan Mbeumo, Antoine Semenyo and Anthony Elanga would all likely cost around - or north of - £50m.

With additional sponsorship being sought and extra streams of income emerging constantly, Newcastle have dramatically increased their matchday and commercial revenue in recent seasons. A return to the Champions League - or even one of Europe's lesser competitions - would further ease financial pressure after a year away from those lucrative competitions on the continent.

The panic of late June 2024 will stay with Newcastle chiefs for a long time, with PSR consistently at the forefront of all big decisions made away from the pitch. Howe and his team will be relieved to know they have done enough to avoid immediate punishment, while they plot how to box clever in the summer to ensure they remain in and around their elite rivals.

"I think the club were educated last year. I don't think there was any surprise," Howe told reporters at Friday's press conference. "I don't think it was an issue, going back a couple of years that might have been different as I don't think the clubs were fully understanding what the punishments would be.

"I think once they became apparent, that certainly got everyone thinking about the PSR situation. For us what happened last year was very difficult. It had a knock-on effect on what happened in the summer; PSR continues to affect our decision-making, whether that is a contract renewal or whatever the situation regarding our squad we have to think long and hard about making a decision we make.

"That will continue to be the case as long as the rules are the way we are. Certainly we are aware of everything and last year will serve as a good reminder."