The staggering points deduction that faced Newcastle United after £60m 'deficit'

The Magpies were dangerously close to breaching Premier League Profitability and Sustainability Rules (PSR) until they raised a reported £68million by offloading Minteh to Brighton & Hove Albion and Anderson to Nottingham Forest on Sunday night. Newcastle are also set to receive a fee for Dan Ashworth after agreeing a compensation package with Manchester United for the sporting director.

PSR allows clubs to lose £105m over a three-year rolling cycle and as per The Telegraph, there was a £60m deficit in the club’s accounts 48 hours before the accounting period deadline on June 30.

Minteh’s £33m move to Brighton comes just 12 months after United paid £7m to sign the 19-year-old from Danish side Odense Boldklub. He leaves having never kicked a ball in black and white after spending last season on loan at Feyenoord.

Meanwhile, the departure of academy graduate Anderson is viewed as “pure profit” in terms of PSR. Forest have paid £35m for the 21-year-old midfielder, equalling the club record sale of Andy Carroll to Liverpool 13 years ago.

Only those inside the football club knew the true situation but according to the Daily Mail’s Craig Hope, Newcastle were facing a 10 point deduction had they not generated the necessary funds. The same publication reported at one stage that United considered selling Gordon to Liverpool to make up for the shortfall.

Two Premier League clubs, Everton and Nottingham Forest, were handed points deductions last season after failing to comply.

Everton were hit with a 10-point penalty back in November for a PSR breach relating to the three-year period that ended in the 2021-22 season. That was reduced to six on appeal in February. The Toffees were then later docked another two points for a second breach but managed to retained their Premier League status.

Forest, meanwhile, were deducted four points for overspending in the 2022-23 season but they too survived in the top-flight.

The Premier League is set to make changes to its financial rules. In a statement released last month, it was confirmed clubs have agreed “to trial an alternative League-wide financial system next season (2024/25) on a non-binding basis. 

“The existing Profitability and Sustainability Rules (PSR) will remain in place, but clubs will trial Squad Cost Rules (SCR) and Top to Bottom Anchoring Rules (TBA) in shadow. 

“This will enable the League and clubs to fully evaluate the system, including the operation of UEFA’s equivalent new financial regulations, and to complete its consultation with all relevant stakeholders.

“The overall system aims to improve and preserve clubs’ financial sustainability and the competitive balance of the Premier League, promote aspiration of clubs, facilitate a workable alignment with other relevant competitions and support clubs’ competitiveness in UEFA club competitions, while providing certainty and clarity for clubs, fans and stakeholders.

“SCR will regulate on-pitch spend to a proportion (85 per cent) of a club’s football revenue and net profit/loss on player sales.

“TBA is a League-level anchor linked to football costs, based on a multiple of the forecast lowest central distribution for that season. It is designed to be a pre-emptive measure to protect the competitive balance of the Premier League. This protection is intended not to have an impact unless significant revenue divergence of clubs occurs.”