Simon Jordan explains why new Newcastle United owners will be able to 'spend what they want'

The Magpies became the richest club in world football on Thursday when a deal allowing the Saudi-funded PCP consortium to buy out Mike Ashley was finally completed.

As well as sparking jubilant celebrations among supporters, the move provides the Toon Army with an enormous wealth to draw upon.

And Jordan has argued that Ashley’s relative frugality in recent years should allow the new owners to utilise their financial might to full effect.

Speaking on talkSPORT, the former Crystal Palace chairman said: “They can spend what they want. They haven’t got losses.

"In the Premier League you’re allowed to carry £105 million with the losses over three years. Newcastle have been profitable for as long as Mike Ashley can remember, so they’re carrying in gains. They won’t find themselves in a loss position for some time.

"If they go and buy, say, £500 million worth of players, those players will depreciate over the contract term at, say, £100 million a year. If they build that club and their revenues go up at the same time, and they’ve also got gains, they’ve got a real run at spending money if they want to.”

But despite his optimistic claims, Jordan has still been quick to deliver a reality check to the Magpies.

Addressing the club’s immediate transfer potential, he said: “Newcastle United isn’t a draw right now.

"They’re a draw because people’s perception will be that they’ve got lots of money. That will take time to land in the marketplace – it will take time to attract players.

"Who're they going to buy, in player terms? Who’re they going to get in January? All they’re going to get is B-rated players because the players that are potentially available to them are already signed to big clubs.

"If you’re a big club player… Is Griezmann going to leave Barcelona to join Newcastle right now just because the owners are wealthy? It will take some time.”

He added: “Initially, it’s going to take a period of time between the enormous wealth that they’ve got behind them and the desire for people to come and play at Newcastle.

"They’re going to have to pay premiums for people because ultimately, whether people like it or not, when Chelsea’s landscape changed they always had London as a backdrop.

"Whether people agree with it or not, foreign players see London, they see Manchester – they don’t see Newcastle yet.”