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Newcastle´s £28m obligation to buy clause from Chelsea

Newcastle´s £28million obligation to make Hall´s loan move permanent is subject to performance-related criteria. A lack of opportunities would suggest that Hall has not met that criteria, however, The Gazette understands the clause will likely be triggered as it is subject to Newcastle´s overall performance in the Premier League rather than the individual player´s.

Despite Hall rarely playing, Howe said: "He´s getting closer [to triggering the clause] with every game. While I´m not on top of that on a daily basis, I´m sure he´s very close." As a result, Newcastle are set to end up paying a significant fee for a player who is not playing and is at a crucial stage of his career and development process, all while under significant financial pressure from the Premier League´s Profitability and Sustainability Rules

have announced a pre-tax loss of £90.1m in the first full year under Todd Boehly and Clearlake Capital´s ownership.

Accounts filed by Chelsea FC Holdings Limited revealed the loss for the 12-month period through to June 30, 2023.

Chelsea had made a loss of £121.4m the previous year, which the club blamed on sanctions imposed on the club´s former owner Roman Abramovich.

The losses will raise further doubts over Chelsea´s ability to meet the Premier League´s profit and sustainability rules (PSR). The rules limit clubs to losses of £105m over a three-year period.

Chelsea stressed the club ´continues to comply with UEFA and Premier League financial regulations´, despite the loss in the year and fallout from the sanctions.

Clubs are allowed to spend money on infrastructure, women’s teams and academy costs, which will contributed to the losses considered under PSR.

Chelsa´s overall revenues grew to £512.5m, rising from £481.3m the previous year, with profits on player sales and fixed assets reported at £142.2m.

Kai Havertz was a noteable sale during the time period, with the German international moving to Arsenal for £65million last June.

The growth in turnover was also driven by the women’s team winning the Women’s Super League and the Women’s FA Cup, as well as reaching the final of the Women’s League Cup.

Chelsea’s broadcast revenues were reduced by £9.1m to £225.9m the previous year, despite the men´s team´s run to the Champions League quarter-finals and the Women’s Champions League semi-final last season.

The decrease followed the Blues finishing 12th in the Premier League last season, resulting in a lower domestic broadcasting share.

The accounts confirmed Chelsea have made player registrations worth a total of £744million for the period ending on June 30 in 2023.

Chelsea’s parent company said the group has since registered 22 players at an initial cost of £454.8m since the period ended.

This includes the British club record £115million deal to sign Moises Caicedo from Brighton, as well as £52m to bring Christopher Nkunku to the club from RB Leipzig.

Romeo Lavia and Cole Palmer were among other notable additions last summer, costing £53m and £40m respectively.

The additions take their overall spending on transfers to £1.2billion since their takeover of the club.

"The size of Nico William´s salary could be problematic and therefor I would class Williams to Chelsea as unlikely..

I think that Osimhen is very unlikely as well - owing to the transfer fee + salary. Chelsea will do what it takes to stay PSR compliant."
- David Ornstein/The Athletic

The 19-year-old joined Newcastle on a season-long loan last summer and his deal contains a conditional obligation to buy. The clause is understood to be worth an initial £28m plus a further £7m in future add-ons.

Taking to X over the weekend, transfer guru Fabrizio Romano confirmed Hall’s permanent move to Newcastle is “just a matter of time.”

Furthermore, Magpies boss Eddie Howe acknowledged the permanent move is expected to cross the line.

“Yeah, I think so,” replied Howe when asked if Hall to Newcastle is ‘nailed on.’

“That’s why I’m preparing for him to be here long term and I’m delighted with that because he has many qualities that we’re looking for.

“In terms of my thinking, I’m preparing for Lewis to be at Newcastle for many years. He was always brought in with a long-term view, not a short-term signing. He is a long-term signing.”

Hall could fetch Chelsea as much as £35m and given he’s a homegrown player, will represent pure profit on Chelsea’s balance sheet.