Major Premier League rule change set to restrict Newcastle United & Aston Villa as Arsenal & Man Utd benefit

Newcastle United and other 'aspirational clubs' could be limited by the proposed changes to Premier League Profitability and Sustainability Rules (PSR).

The Premier League released a statement on Monday confirming clubs had "agreed to prioritise the swift development and implementation of a new league-wide financial system". Under current PSR - a system Magpies co-owner Amanda Staveley recently called for a re-think on - clubs are permitted to lose £105million over a three-year rolling period.

However, financial rules are to be amended and align with UEFA's Financial Sustainability Rules, which limits clubs' spending on wages, transfers and agents' fees to 70% of their revenue. FSR is currently winding down year-on-year to a squad-cost ratio of 70% as the limit, starting with 90% in 2023-24 before decreasing to 80% in 2024-25.

It's claimed the Premier League are reportedly looking at a model of 85% for clubs not in Europe, which could be introduced as early as this summer, although there is no guarantee that new rules will even be signed off at the league's AGM in June.

If signed off as reported, financial expert Kieran Maguire has crunched the numbers by applying them to clubs' latest accounts. And according to Maguire, the table shows aspirational clubs such as Newcastle and Aston Villa would struggle.

Maguire adds that it is "interesting that Manchester United, Arsenal & Tottenham Hotspur all have much higher net spend than Newcastle yet are all well within the limit." However, that is because the Magpies are "coming from a low base in terms of revenue".

United's revenues increased to £250.3million in 2022-23, a £70m rise on the previous season and a switch to FSR would only further the need to build the club's commercial levels. Next year's accounts will show the Champions League money and the £25-million-per-season front of shirt sponsorship with Saudi Arabian events company Sela.