Paul Mitchell's Newcastle United summer transfer budget 'revealed' after £68m deal & Chelsea swoop agreed

The Magpies have just appointed Paul Mitchell as the club’s new sporting director with his role heavily focused on player recruitment.

Newcastle have already signed four players so far this summer with Lloyd Kelly and John Ruddy joining as free agents, goalkeeper Odysseas Vlachodimos joining from Nottingham Forest and Lewis Hall’s loan move from Chelsea becoming permanent for £28million.

This was all after Newcastle frantically tried to sell players in order to comply with the Premier League’s Profitability and Sustainability Rules before the June 30 deadline. The club were able to avoid any potential points deduction as they sold Yankuba Minteh to Brighton & Hove Albion for £33million and midfielder Elliot Anderson to Forest for £35million. The addition of a compensation fee from Manchester United for outgoing sporting director Dan Ashworth gives Newcastle another PSR boost ahead of the new campaign. iNews have reported Man United paid around £10million to release Ashworth from his contract at St James’ Park.

While budgets are often quite fluid and determined by player sales, The Telegraph have reported that head coach Eddie Howe and his new sporting director Mitchell will have around £100million to spend on new signings this summer.

But Howe himself has admitted he doesn’t work to set budgets at Newcastle.

“I don't think it quite works like that these days,” he said back in May. “I think the whole way of trading players have changed.

“The days of that kind of way of working are over I think so it's a case of just being smart and reacting to what happens and try and bring the right players with the right characteristics into the squad.”