OK, here goes. It's complicated.
And nobody really knows, yet. This is just another leak from a PL meeting.
But it appears that what a club can spend on the squad will be restricted to a multiple of the PL broadcast income of the lowest club in the league.
So if Sheffield United are making 100 million from the PL, no club can spend more than 4, 5 or 6 times that (multiple is unclear) on wages and amortisation.
So if a top club's revenue goes up, it can't spend more on the squad as they will go over the limit. Super profits!
For City, it will limit our competitiveness in Europe and our dominance in the PL.
For Newcastle, it, in theory at least, if there are no other financial controls, means they can spend the same as the top clubs even if their revenues are much smaller.
Too long?
Edit: It seems the 85% squad rule will still be in place, so Newcastle can still only spend 85% of their smaller revenue on the above example.