Financial expert explains why incoming FFP/PSR rules spell bad news for Newcastle United

Newcastle United co-owner Jamie ReubenNewcastle United co-owner Jamie Reuben
Newcastle United co-owner Jamie Reuben | Getty Images
Premier League clubs have announced changes to the FFP/PSR system for the 2025-26 season

Football financial expert Kieran Maguire expects the Premier League’s new FFP/PSR rules to hinder Newcastle United.

Clubs voted unanimously to overhaul the regulations for the 2025-26 campaign. The revamp will align the top flight closer to UEFA’s methods - which centres around being able to spend a percentage of revenue.

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Premier League clubs will allow teams in UEFA competition to spend 70 per cent of revenue, with that threshold increasing to 85 per cent for non-European outfits. As of yet, there has been no indication that the £105million clubs are allowed to lose over a three-year-period will be changed.

Previous reports had claimed a “luxury tax” was being considered, where clubs would be fined for breaching regulations rather than docked points. FFP/PSR guidelines have prevented Toon chiefs from opening the purse strings as much as they would like since the Saudi-backed takeover.

Newcastle could not sign any players in January despite suffering an unprecedented injury crisis. Monetary guru Maguire explained why the new system will cripple the Magpies’ spending further.

“What does it mean in plain English? Five of the ‘Super League six’ can spend a lot more money, along with financial teacher's pet Brighton,” he posted on social media. “Aspirational/ambitious clubs such as Aston Villa, Nottingham Forest and Newcastle, who want to spend more money, will not be able to do so and instead need to cut.”

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However, there was some respite, with lucrative commercial deals expected to improve Newcastle’s situation. Multi-million-pound partnerships with Adidas and Sela are set to be accounted for on this year’s balance sheet.

Champions League income - worth around £35million - should also be accounted for this summer. Maguire added: “New deals from Adidas, Sela etc are likely to improve the position for NUFC.”

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