Newcastle United fans will understandably be sick of hearing about the Premier League financial rules.
The Profit and Sustainability Rules (PSR) have repeatedly shackled Newcastle from being able to spend in recent transfer windows.
Despite the immense wealth of the owners and the incredible off-pitch growth since the takeover in 2021, the regulations have stunted Newcastle’s progress. Many would argue that’s exactly what they’re designed to do.
The Premier League even introduced new associated party transaction rules immediately after the PIF takeover which stopped clubs from striking sponsorship deals with parties related to their ownership.
Newcastle sided with Manchester City to try and change those APT rules in a recent vote, and a finance expert explained how the APT vote benefits Newcastle.
Nick De Marco highlights PSR ‘mistake’
Newcastle fans may be familiar with sports lawyer Nick De Marco after he played a big role in the PIF takeover in 2021.
De Marco recently praised Newcastle’s donation to AFC Wimbledon after the postponed Carabao Cup match, and he continues to share close ties with the club.
PSR is something De Marco has specialised in over recent years after he represented Leicester City and Nottingham Forest following their PSR breaches.
Speaking on the Price of Football podcast, he has now highlighted what he believes are the biggest flaws about PSR.
When discussing the independent regulator, De Marco said: “The regulator is supposed to be there, in large part, to encourage financial sustainability. That’s what they say and that’s a good thing, generally speaking, but they also say they will not interfere with the league’s PSR rules.
“I think that’s a mistake,” he continued. “Because those rules are justified on the basis of financial sustainability. Whether they actually do so or not? I question.
“One of the real problems with them (PSR), one of the real controversies, one of the main reasons I think we need an independent regulator is the problem with self-regulation. Clubs vote for their immediate financial self-interests and that means those rules are at least perceived to be – and I’m not going to get involved in the argument – but they are often perceived to be there to hold back competitor clubs and uphold the status quo.
“That doesn’t help competitive balance and I’ve seen no real evidence that those rules have helped financial sustainability, either, over the past 10 years.”
Newcastle have been held back by PSR
There is no doubt about it – Newcastle’s growth has been held back by PSR.
De Marco is spot on when he argues that the financial regulations have failed to actually encourage sustainability and have instead just stopped top-flight clubs from challenging the established elite.
Newcastle are one of many clubs who are showing ambition and want to compete at the top, but PSR has not only stopped the Magpies from investing, but actually forced them to sell players to balance their books.
READ MORE: Newcastle United could be handed PSR lifeline as finance expert explains ‘interesting’ rule change
Newcastle were forced to sell Elliot Anderson and Yankuba Minteh in June to avoid a potential points deduction under PSR. They ended the summer with a net profit.
Howe has warned that Newcastle still have to sell in future windows to make sure they comply with PSR. It is a broken system and one that needs evaluating quickly.
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