On 8 June 2016, Newley signed a three-year deal with the Sydney Kings. He made his debut for the Kings in their season opener on 8 October 2016, scoring nine points in a 77–73 loss to the Brisbane Bullets. On 24 October 2016, he scored a team-high 20 points, on 8-of-15 shooting, in a 90–73 win over the Illawarra Hawks. Six days later, he scored a season-high 29 points, in an 87–78 win over Brisbane, helping the Kings start the season with a 5–1 record. On 17 November 2016, he set a new season high, with 34 points, in a 93–80 loss to the Perth Wildcats. On 9 January 2017, he was ruled out indefinitely, with a hamstring injury. He returned to action in early February, after missing four games. At the season's end, Newley was named to the All-NBL Second Team. The Kings finished the regular season in seventh place on the eight-team ladder, with a 13–15 record.