Newcastle United learn truth after £135m Aston Villa move blocked
Newcastle United Handcuffed by £105m Spending Limit After Aston Villa’s PSR Reform Bid Rejected
Newcastle United remain bound by the current Premier League financial regulations that cap allowable losses at £105 million over a rolling three-year period. This restriction remains in place after a failed attempt by Aston Villa last summer to amend the Profitability and Sustainability Rules (PSR), which would have raised the threshold to £135 million.
The proposal, led by Villa and supported by key figures within their football operations department, including then-president of business operations Chris Heck, was ultimately dismissed by Premier League member clubs. According to football finance expert Kieran Maguire, the rejection was not simply about financial prudence, but a strategic decision by the Premier League’s established elite to curtail the rise of ambitious clubs like Newcastle United and Aston Villa.
Status Quo Favours Established Elite
Maguire suggests that a number of top-flight clubs, wary of losing their competitive edge, are resistant to reforms that would allow so-called “aspirational” clubs more room to invest and grow. “The reality is that many Premier League clubs see the current PSR limits as a mechanism to protect their own interests,” he told The Price of Football podcast. “They don’t want clubs like Newcastle, Villa or Nottingham Forest upsetting the hierarchy. That’s why they voted the proposal down.”
Chris Heck previously argued that if the rules were adjusted to account for inflation and updated economic guidance, such as that from the Bank of England, the threshold should realistically be closer to £143 million. Despite this rationale, the proposal failed to gain traction.
Notably, Liverpool CEO Billy Hogan and Brighton & Hove Albion’s chief executive Paul Barber were vocal in their opposition. Hogan reportedly “didn’t see the sense” in loosening financial restrictions, while Barber dismissed the notion entirely, stating that “arguing about wanting to lose more money” was a path the league should avoid.
Premier League Ethics Called Into Question
Aston Villa have since taken drastic steps to comply with PSR requirements, including following Chelsea’s lead by selling off their women’s team to a separate entity—an accounting tactic that generates short-term profits on paper. While technically compliant with the letter of the law, such moves have sparked criticism of the league’s governance and the perceived hypocrisy embedded in its financial rules.
“The Premier League says these rules are about profitability and sustainability,” said Maguire. “But when clubs are transferring assets to themselves and claiming it as profit, it raises questions about the integrity of the system. Then they wonder why there’s public pressure for an independent regulator.”
He continued: “This self-serving governance, where clubs act in their own short-term interests and block changes that could benefit the league as a whole, is exactly why trust in the Premier League’s financial model is deteriorating.”
Newcastle’s Ambitions Curtailed
Newcastle United, under the ownership of the Saudi-backed Public Investment Fund, have made clear their ambition to establish the club as a regular contender in European competitions. However, the PSR cap of £105 million in losses over three years significantly restricts their ability to accelerate squad development through aggressive investment.
Despite commercial growth and recent player sales, Newcastle’s ability to spend remains tightly regulated unless revenues rise dramatically or they offload key assets. The club is also exploring creative strategies to manage PSR pressures, including sponsorship deals and academy development, but a fundamental change in rules would have offered immediate breathing room.
With the transfer market intensifying and rivals flexing their financial muscle, Newcastle now face the difficult task of balancing ambition with compliance—while watching the door to increased flexibility remain firmly shut.
Growing Calls for Reform
As financial disparity across the Premier League continues to widen, Maguire believes pressure for reform—either from within or via external regulation—will only grow. “I have a lot of sympathy for Aston Villa,” he said. “They tried to push for something sensible—indexing the PSR cap with inflation—but were blocked by clubs more concerned with maintaining the status quo than fostering fair competition.”
Until meaningful reform arrives, clubs like Newcastle United must continue to navigate the Premier League’s restrictive financial terrain—where ambition is often curtailed not by performance, but by policy.