Newcastle United may reportedly struggle to sign Manchester City midfielder Kalvin Phillips due to Financial Fair Play regulations.
Phillips has struggled to establish himself in the Man City side since joining the club from Leeds United in the summer of 2022.
The England international was restricted to just four starts in 21 competitive appearances during his first season with the Premier League champions.
Although he has stayed with the club for the first half of the 2023-24 campaign, Phillips has continued to find playing time hard to come by, starting just one competitive game all season.
Pep Guardiola recently apologised to Phillips for not selecting him but claimed he struggles to see him as a part of his side.
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With Phillips not featuring in Guardiola's plans, he is now set to leave the club in January in a bid to gain regular playing time ahead of Euro 2024 next summer.
Newcastle are believed to be among the clubs that are considering a potential move, as they look to strengthen a depleted midfield.
Sandro Tonali is currently serving a 10-month ban for breaching betting regulations, while Elliot Anderson and Joe Willock are both on the sidelines.
While Newcastle may be among Phillips's admirers, The Mirror is reporting that financing a loan deal could prove difficult.
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Man City are keen for any potential suitor to pay a loan fee in excess of £5m as well as a significant proportion of Phillips's £135,000 a week salary.
The report claims that the Magpies could find it difficult to meet Man City's demands due to Financial Fair Play regulations.
Newcastle are also reluctant to agree to a purchase clause in the proposed loan deal, with Eddie Howe looking to keep his options open for the summer transfer window.
Like the Magpies, Italian giants Juventus are unwilling to pay the majority of Phillips's wages despite showing an interest in the midfielder.
Phillips has also been linked with Man City's local rivals Manchester United, who have reportedly made the Englishman a top January target.
