Simon Jordan has hit out at the ‘nonsensical’ rules that are restricting Newcastle United’s spending power.
The Premier League’s profit and sustainability (PSR) rules look set to remain in place next season after clubs decided against voting on introducing new regulations. Clubs will continue to trial squad cost rules and top-to-bottom anchoring in shadow, but they will still be limited to losses of £105m over a rolling three-year period.
Football finance expert Kieran Maguire previously argued that the rules hit clubs like Newcastle ‘hardest’ because permitted losses have not risen in line with inflation since the regulations were brought in back in 2013. Jordan, for his part, has suggested that it is ‘very difficult for Newcastle to consistently keep working the oracle’ because the Magpies are, obviously, competing with sides who have significantly more revenues.
“I’d like to think that the governance of the game changes,” the former Crystal Palace owner told talkSPORT. “I don’t know how anybody can keep a straight face and suggest that a big part of the reason why we have governance is for sustainability and then argue that the people who own Newcastle aren’t sustainable.
“Ultimately, the sustainability of Newcastle is pretty much wrapped in copper bottom protection. They have got people who own them that have got more money than God and are quite prepared to fund them and quite prepared to give up guarantees to make sure that Newcastle, as a club, are not put into any existential jeopardy by their spending patterns.
“So the sustainability argument is just nonsense. It’s just a nonsensical, stupid, governance argument that’s actually unwinding some of the best parts of the Premier League.”
Even if the rules do change, squad cost regulations will limit on-pitch spending to 85% of revenue and net profit/loss on player sales for those sides who are not in Europe and 70% for those clubs competing in Europe as per UEFA’s rules. Although Newcastle have been working to UEFA’s separate regulations, regardless, which restrict spending to 70% of revenue from next season, anchoring could potentially level the playing field a little if it was ever introduced as there would be a universal spending limit in place regardless of a club’s commercial turnover.
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