Arsenal and Newcastle's very different PSR positions as Sandro Tonali transfer saga erupts

Sandro Tonali was rumoured to be a late transfer option for Arsenal on deadline day but a move could be more likely to come to fruition in the summer window if the Gunners can persuade Newcastle

Neither Arsenal nor Newcastle made a first-team signing during the January transfer window but that did not stop their presence in one of deadline day's late dramas. The prospect of Magpies star Sandro Tonali making a switch to the Emirates Stadium emerged early, but never quite got off the ground.

There were no talks between the clubs over a move, and Tonali's agent rubbished the idea of a January move ever being permitted. But, despite this, a representative of the Italian was said to have offered his services as the Gunners cast their eye over the midfield market following Mikel Merino's injury.

Newcastle boss Eddie Howe was unflustered by the rumours and suggested Tonali was in a good place. "He is very happy here, loves playing for Newcastle and loves the city," the coach said.

Sandro is absolutely fine. I had discussions with him yesterday. His focus is on the here and now and with us. There is no issue with Sandro himself. He is happy and committed."

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But has the deadline day rumour kick-started a narrative that could return in the summer? Howe is not anticipating an Alexander Isak to Liverpool-like saga.

"I don't think so but lots of things happen without my knowledge," he said. "As far as I am aware we have an outstanding footballer, and outstanding person and he has a great relationship with me and his team-mates, seems really happy in himself and that would be a surprise to me."

The Gunners have long had a noted interest in Tonali, however, and differing profit and sustainability positions could yet offer an opportunity.

Last summer's spending might see the north London side forced to tread carefully with regards to PSR and UEFA’s squad cost ratio, but Mikel Arteta's side remain compliant and have leeway, with £100million available last month.

"Arsenal have got plenty of wiggle room in January. Yes, they signed players in the summer, but even so, compared to some of the other clubs, it wasn't excessive," football finance expert Kieran Maguire explained.

"They have got Champions League participation as well. That is the big one. The Champions League has never been worth as much money as it is at present and it's where all of the growth is. The Premier League is sort of flatlining.

"Champions League, with the new deal that's come in with the Swiss model… it's simple things. Every match that you win is worth £2million. Arsenal have had a fantastic start to the competition already."

"Arsenal are very strong financially," he added, "Their losses in the last couple of years were £70m and under the Premier League rules you are allowed to lose £105m. So again, they have got plenty of headroom. A very smart club."

Newcastle's position is more precarious. They were under no pressure to sell stars like Tonali this winter - especially when you factor in their record sale of Isak to Liverpool in the summer - and had some money to spend, after splashing more than £240m in the summer on stars like Nick Woltemade, Yoane Wissa, Jacob Ramsey and Anthony Elanga.

Maintaining PSR compliance remains a concern, however, and the caveat of any deal, was that the "most important thing is that it would have to align with what the summer plan looks like, which is the bigger squad plan," according to sporting director Ross Wilson.

Newcastle's wealthy owners have pledged to spend every available penny on players, but it is said that PSR constraints will not be alleviated until commercial revenue increases. That means consistent Champions League qualification is vital to the club's growth.

Newcastle are currently 11th in the division and are at risk of yo-yoing from European qualification once again.- Whether that impacts their willingness to sell, in addition to their spending remains to be seen.

There appears to be some expectation that more funds will be released in the summer following a conservative approach. Some players are set to leave the club in the summer and Newcastle will be able to add from July onwards, Arsenal might want to see if they can help their rival's situation.