‘Allow investment’ - Newcastle United gain unlikely ally in FFP/PSR battle with Premier League
Gareth Southgate has urged the Premier League not to stifle overseas investment with “unintended consequences” of FFP/PSR restrictions.
Newcastle United are arguably the club most frustrated by financial restrictions. The Saudi-backed takeover promised unrivalled riches given the Public Investment Fund’s £700billion net worth.
But measures introduced in the early 2010s have stopped the Magpies from becoming the “next” Chelsea or Manchester City. PSR, the Premier League’s take on UEFA’s Financial Fair Play, was introduced for the 2013-14 season.
Clubs are only allowed to lose £105million over a three-year period - a reality that has not been adjusted for inflation. Clubs like Everton and Nottingham Forest have fallen foul in recent months to cop sizable points deductions.
Coupled with frustrations about being unable to spend big, this has triggered a debate on FFP/PSR’s future. Critics argue that the current rules benefit historically successful clubs as they generate the most money and, thus, have deeper pockets.
Former England manager Southgate has warned the Premier League not to repel investment - reminding them how the brand became successful in the first place. The 54-year-old spoke at the government’s international investment summit, attended by Toon chairman Yasir Al-Rumayyan.
"The best players wanted to come here,” Southgate said. “This meant the product improved, which meant outside investment from abroad, which the Premier League has right across the board. That has made the product stronger and stronger.
"Now we face those challenges of how do you keep tradition but encourage modernisation? How do you make sure there is enough regulation without the unintended consequences currently in the Premier League of restricting investment because the beauty of the growth of it has been to allow investment and allow the product to grow."