The Premier League’s contentious spending regulations, known as Profit and Sustainability Rules (PSR), have been confirmed to remain in place for the next season.
The move is likely to draw ire from several clubs including Newcastle United. The decision was solidified during a Premier League shareholders’ meeting in London, where it became clear that, despite disapproval from teams such as Manchester United, Aston Villa, and the Magpies, PSR will persist.
In a stark reminder of the rules’ impact, Everton received a points deduction after breaching PSR, while last summer Newcastle were forced to sell youngsters Elliot Anderson and Yankuba Minteh just before the June 30 deadline to avoid a points deduction of their own.
Eddie Howe, Newcastle’s manager, has previously blasted the PSR situation, saying: “I’ve said before I don’t understand the rationale. I don’t understand why we’re in a position to incentivise selling academy products. I don’t necessarily think they started with that intention of forcing teams to make those decisions.”
It also meant Newcastle were unable to invest properly in their squad during the winter transfer window, and instead sold Lloyd Kelly and Miguel Almiron to stay within the rules.
Aston Villa attempted to relax the financial limits, proposing an increase in allowed losses from £105m to £135m over three seasons, only for this suggestion to be rebuffed by the league, which plans to continue operating a “shadow system” that aligns squad cost ratios with club revenue alongside PSR.
There was no vote between the 20 clubs at the Premier League meeting with a new “anchoring system” the clear alternative. That would see clubs only being allowed to spend a proportion of their income on wages, transfers and costs.
Football finance expert Kieran Maguire believed anchoring would benefit Newcastle. It would allow top-flight clubs to spend five times the amount the bottom club receives in TV and prize money
“Anchoring would be excellent for Newcastle because it sets a level playing field in terms of the maximum an individual club can spend,” he told ChronicleLive. “But, at the same time, if they also have to comply with UEFA’s rules, that would be the constraint.
The Professional Footballers’ Association has expressed significant concerns about anchoring, as it could potentially limit player earnings. In a separate development, Sir Gary Hickinbottom, a former Court of Appeal judge, was unanimously elected as the new chair of the Premier League’s judicial panel, replacing Murray Rosen, who has completed his five-year term, reports the Mirror.
Notably, Manchester City had objected to Rosen’s involvement in their hearing against the 115 charges, citing his allegiance to Arsenal.
Man United, meanwhile, are another club unhappy with PSR remaining. The club has expressed frustration by attributing a reduced capacity for signings, higher ticket prices, and staff layoffs to the PSR, according to a communication sent to supporters.
INEOS, the owners of Manchester United, are executing considerable redundancies, emphasising the need to economise in order to allocate finances towards their squad.
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