Newcastle United learn truth after £135m Aston Villa move blocked
A recent proposal to amend the Premier League’s Profitability and Sustainability Rules (PSR) has been firmly rejected—largely, it seems, because several established clubs are keen to limit competition from ambitious, upwardly mobile sides such as Newcastle United and Aston Villa.
This is according to football finance expert Kieran Maguire, who weighed in on the situation after Aston Villa’s failed attempt last summer to raise the PSR spending cap. The Midlands club had submitted a proposal that would have increased the permitted financial losses over a three-year period from £105 million to £135 million. That figure has remained unchanged since the PSR system was introduced back in 2013.
Chris Heck, Aston Villa’s former president of business operations, argued at the time that the allowable loss figure should reflect economic realities and inflation. He even suggested that the figure should be closer to £143 million if the Bank of England’s inflation guidance was properly considered.
Despite the logic behind Villa’s argument, the proposal did not gain traction among Premier League executives. Liverpool’s CEO, Billy Hogan, was one of several high-profile figures who rejected the idea, stating he “didn’t see the sense in making that change.” Brighton & Hove Albion CEO Paul Barber went a step further, criticizing the concept of increasing loss thresholds altogether. “Arguing about wanting to lose more money is not something any of us should be signing up to,” Barber said.
In a bid to remain within the current limits, Aston Villa resorted to selling their women’s team—essentially transferring it internally—mirroring a controversial move previously made by Chelsea. These internal sales are seen as ways to generate ‘paper profits’ that help clubs stay compliant on balance sheets, even if no real external income has been made.
Kieran Maguire expressed concern about such practices and the overall state of financial governance in the Premier League. Speaking on the Price of Football podcast, he noted:
“Premier League owners view these internal transactions as being within the ethical bounds of the PSR rules, which are supposedly built around the principles of profitability and sustainability,” he said. “But transferring an asset to yourself to register a profit on paper and meet financial regulations? That stretches the spirit of what these rules were meant to be about.”
Maguire criticized the hypocrisy of club executives who then act surprised by public demands for better regulation. “They wonder why fans and stakeholders are calling for an independent football regulator,” he said. “It’s because of governance loopholes like these. They just don’t get it.”
According to Maguire, the real reason for the failure of Aston Villa’s proposal wasn’t about fiscal responsibility—it was about self-preservation. The traditional top clubs were simply not willing to give ambitious competitors a better chance to catch up.
“I have a lot of sympathy for Aston Villa,” Maguire continued. “They made a genuine effort to get the rules updated in line with inflation and modern realities. But other clubs—those already entrenched at the top—voted against it. Why? Because it benefits them to keep the limit low. They don’t want new challengers like Villa, Newcastle, or even Nottingham Forest pushing into their territory.”
The episode highlights a growing divide within the Premier League between long-established powerhouses and clubs with rising ambition. Without reforms, or independent oversight, this self-serving attitude among club owners may continue to skew the competitive landscape and prevent the league from evolving in a financially equitable way.