Breaking news- Newcastle takeover lawyer set for new Premier League battle and result will affect Magpies spending
The Premier League is bracing for a new and potentially explosive legal confrontation over its proposed “anchoring” system, which aims to curb spending by setting a limit based on commercial and broadcast earnings. Under this plan, clubs in the top flight would be restricted to spending approximately five times the revenue earned by the league’s lowest earners. This proposal has already sparked fierce opposition from the Professional Footballers’ Association (PFA), who claim that it would essentially act as a salary cap for players—a move they argue is illegal under EU competition law.
To strengthen their case, the PFA has enlisted the expertise of prominent sports lawyer Nick de Marco KC. De Marco is no stranger to high-profile cases involving Premier League and English Football League clubs, having been a key figure in the successful Newcastle United takeover in 2021. His track record includes a number of victories against the league, most notably when he helped Leicester City win an appeal that prevented a potential points deduction. His ability to stand up to the Premier League in court has earned him the nickname “nemesis” of the organization, though de Marco himself is quick to downplay this label.
In a recent social media post on X (formerly Twitter), de Marco addressed the nickname, stating: “Someone sent this to me today and suggested I should put ‘nemesis barrister’ on my chambers profile. I’m not sure—I don’t plan to be anybody’s nemesis. I just try and represent all of my clients without fear or favor, acting in the best traditions of the independent Bar, including the ‘cab rank’ rule.” He added that while his impartial stance is not always appreciated, particularly in the often-tribal world of sports, his role is to serve his clients to the best of his ability.
The outcome of this looming legal battle will be pivotal in shaping the financial regulations of the Premier League in the coming years. Currently, the league’s profit and sustainability rules (PSR) are set to expire after the 2025/26 season. These rules will be replaced by new regulations that would restrict clubs to spending a maximum of 85 percent of their revenue on squad costs. The proposed anchoring system, however, would work alongside these rules, placing an additional cap on club spending. Under this system, clubs could only spend up to five times the revenue of the league’s lowest-earning team.
For example, based on Southampton’s earnings of £103.6 million during the 2022/23 season, a club would be allowed to spend no more than £518 million under the proposed cap. Chelsea, with their massive transfer outlay, were the only club to exceed that figure in recent financial reports, illustrating the potential impact of the rule on the league’s most affluent clubs. Despite this, a majority of Premier League clubs have voted in favor of trialing the top-to-bottom anchoring system this season.
The PFA has vowed to fight any measures that would lead to salary caps, even indirectly, arguing that such restrictions would undermine player earnings. Some critics, meanwhile, warn that the new proposals could dampen the Premier League’s financial dominance on the global stage, a key factor that has driven the league’s immense popularity and success.
For clubs like Newcastle United, the anchoring system may offer new financial flexibility. Having worked hard over the past three years to boost their commercial revenue, Newcastle could see an opportunity to increase their spending power without running afoul of the league’s sustainability guidelines. In fact, the club was forced to part ways with promising young talents Elliot Anderson and Yankuba Minteh this past summer in order to comply with the existing PSR rules. However, not all clubs may share Newcastle’s enthusiasm. The so-called “Big Six” teams, whose spending power has long overshadowed the rest of the league, are likely to align with the PFA in opposing the proposed regulations, fearing that their ability to invest in top talent will be curtailed.
As the Premier League prepares to defend its proposed changes, the outcome of this legal battle will reverberate throughout English football. It could redefine the financial landscape of the sport, impacting everything from player wages to club competitiveness, and even the balance of power within the league itself.