Newcastle United given downbeat verdict on Premier League PSR change amid shock Aston Villa decision

Newcastle United will be “no better off” under the Premier League’s new proposed financial rules because of their ambitions to compete in Europe each season.

That’s according to football finance expert Kieran Maguire after English top-flight teams voted in favour on introducing a system known as “anchoring”, which restricts clubs’ spending on transfers, wages and agents’ fees to a multiple of what division’s bottom club earned in television revenue.

In isolation, Maguire says the salary cap would benefit United, allowing them to spend “between £200million to £370m”. However, qualifying for the Champions League, Europa League or Europa Conference League means complying with UEFA’s Financial Fair Play rules, which limits clubs to spending 70% of their total revenue on wages, transfer and agents’ fees.

Maguire told Loaded Mag NUFC: “I think initially when the feeling was that these rules were going to be he only rules in operation then it would have allow Newcastle United to spend those numbers you’re looking at between £200m and £370m, but you’ve still got to comply with UEFA rules.

“If you qualify for Europe... let’s face it you want to be in Europe. It’s there or nowhere. We’ve all got to be perfectly blunt so you’ve still got to satisfy the UEFA rules and if the Premier League adopts the UEFA rules as well as the anchoring rules then again, you’re no better off on a domestic basis.

“I think the initial excitement and elation has has very quickly evaporated, and the rules that will be operation from 2025-26 are still going to favour the established elite.”

The proposal will be formally voted on at the Premier League’s AGM in June, where the finer details are also expected to be ironed out. Manchester United, Manchester City and Aston Villa have signalled against the idea while Chelsea are abstained.

Maguire added: “What it is effectively saying is for every £1 that the side finishing bottom of the Premier League earns from the Premier League TV deal, all of the clubs in the Premier League can spend £5 on wages, transfer fees, amortisation and agent fees.

“That is quite good because that means Newcastle, in theory, can spend the same amount as Manchester City and Manchester United etc. If we just had anchoring, I think it’d be fantastic news for Newcastle because it would allow that gap... we know it is a closed shop between the existing elite and what you might call the ambitious or aspirational clubs like Newcastle and Aston Villa.

“I think that would have been quite exciting but the downside is these rules are operating with UEFA’s squad cost control which is your money coming in and you can only spend 70% of that on wages and agent fees.”