For the Premier League’s top sides and relegation fodder alike, the initials PSR still strike an enormous amount of fear.
Many clubs, Newcastle United included, strive to do all they can to appease the league’s strict financial rules, knowing a breach could lead to punishment.
We saw it last summer, when the emergency sales of Yankuba Minteh and Elliot Anderson were rushed through at the end of June so we would avoid a points deduction, which had previously been forced upon Everton.
This summer however, things have changed, and all signs are pointing to Eddie Howe finally being able to enjoy some financial backing. The top financial expert in football right now has also weighed in on what transfer activity could be on the horizon this summer…
Speaking to Sky Sports News, renowned football finance expert Kieran Maguire discussed the current PSR situation for a number of the top teams in the Premier League.
Thankfully, as we all hoped, it looks like such some sensible spending in the past few windows is going to finally pay dividends for the club, with a key factor being the 2021/22 spend (and subsequent losses) set to drop off PSR’s three-year cycle from July onwards.
Here’s what Maguire had to say, helping explain our much improved position and why our spending may ramp up next month:
“Newcastle United have had three very quiet windows by their standards and the good news for Newcastle is, because PSR is set over a three-year period, that season 2021/22 where Newcastle lost over £70m that drops out of the equation on the first of July,”
“I think that Newcastle are in a much stronger position this summer to compete once again in the market. They don’t have as free of a reign as the likes of Chelsea, but they are still in a far stronger position than they were 12 months ago.”
Even with such strong PSR headroom, there’s still opportunity to grow and strengthen our financial position by selling, with the likes of Joe Willock and Harvey Barnes named as potential outgoings
“I don’t see any pressure on the club in a need to sell players before they start to bring anyone in. There could be some player trading, they have freed up some of their spots on the wage budget, but there’s not that very, very significant pressure as we saw with Anderson and Minteh leaving last June.”
Aston Villa appear to be the one side facing PSR issues this summer, leaving them vulnerable to a sale or two over the coming weeks.
Missing out on the Champions League is considered a huge blow for Unai Emery’s side and could open up an opportunity for Newcastle to take advantage, with Jacob Ramsey thought to be a target.
Maguire told Sky Sports: “Of the 20 Premier League clubs, Villa are the one we are most concerned about. Last season, when they did qualify for the Champions League, for every £100 of revenue they brought in, they spent £91 on wages.”
“Those players will have had contract step-ups for qualifying for the Champions League.”
The situation at Villa emphasises just how important it was that we qualified for the Champions League on the final day, as a ‘worse’ run in that competition far eclipses a run to the final in the Europa League or Conference League.
In the past, Eddie Howe has commented on how he would like to capitalise on other clubs’ dire financial situation to finally strengthen his squad. And with the likes of Ramsey being discussed, there’s surely a bargain to be had there in the coming weeks, even if that forces us to act before our PSR position improves in July.