The rules will only allow clubs to spend what they earn and Pardew has admitted he is fully behind the plans but is wary of the methods some clubs may use to escape sanctions.
“It should close the gap, but I’ve seen a worrying report on that and how the big clubs are beginning to manoeuvre around it,” Pardew told The Sunday Telegraph.
“They do it with commercial deals and loopholes and they will throw money at it in a way to find them. We’re going to fit in quite nicely to it so I hope the authorities are going to come down hard [on those who break the rules].
“Clubs like ourselves, Napoli, Athletic Bilbao could really come to the fore. If we’re going to say it’s fair, it has to be strict and it has to be policed.
“They’ve got to enforce suspensions [from European competition] if we want to even the market up. If we’re going to do it, do it properly and go hard at it.”
Newcastle play Liverpool today and victory would further the possibility of European qualification. Luis Enrique and Andy Carroll swapped Newcastle for Liverpool in 2011 and Pardew believes they may now regret their decision.
“Finishing above them would certainly make the wine taste even nicer in the summer,” he said. “I’m at a stage of my life where I appreciate the grass isn’t always greener, I don’t want to go anywhere else because I’m loving it here.
“The players who left, maybe they were too young to realise the grass could have got greener here. It’s too late now.
Despite sitting above Liverpool the Newcastle boss is making sure there is no complacency in his squad and is well aware of the threat the visitors possess.
“We have to be careful because if we open the door they will go flying through it with players like Suarez, Gerrard, Kuyt and Carroll.
“We all have to take credit for the state of the balance sheet, but it’s about results. It’s not going to be easy to finish above them, they have a good run in and they will have a good chance of overhauling us if they win the game on Sunday.
“It’s an important game. I know our fans are excited and the stadium will be rocking. We haven’t really been firing on all cylinders at home, but we did at West Brom and that has given everyone a spring in their step.”