Newcastle United have been frustrated at PSR restrictions since the Saudi-backed takeover in October 2021.
Football financial expert Kieran Maguire believes Newcastle United will “never” catch up to the Premier League juggernauts as long as PSR exists.
Toon chiefs have made a conscious effort to bolster income streams since the Saudi-backed takeover. Over 14 years of Mike Ashley rule left the Magpies way behind the established top-flight elite.
For context, when Ashley sold the club, Newcastle were 13th in the Premier League for revenue - behind Leicester City, Wolverhampton Wanderers, West Ham United and Leeds United. Figures last year were published at £320.3million - a 78 per cent increase from 2021-22.
Premier League revenue analysed
But the Magpies remain lightyears behind the £719million Manchester City fetched over the same period. Manchester United (£662million), Liverpool (£614million) and Arsenal (£613million) make up the rest of the top four.
Newcastle are now seventh for revenue - highlighting the club’s position as just outside the traditional “big six”. PSR critics argue the regulations favour the already established powerhouses - with the rest finding it difficult to compete for transfer fees and wages.
Kieran Maguire raises Newcastle United concern
Monetary guru Maguire is not hopeful of Newcastle being able to catch up on their rivals unless the restrictions change. He told The Chronicle: "If I'm still alive in 10 or 20 years' time, we might be a little bit closer but the other clubs have had the benefit of first mover advantage.
“The other clubs have had the benefit of dynasty-related success. We know Liverpool were successful in the 1980s and Manchester United were in the 1990s and that's helped to build up global fan bases.
“The London clubs have the benefit of being in a city of eight or nine million people and the diaspora that comes from that overseas. All of those things count against Newcastle so it's going to be a gradual, slow process. They certainly have the opportunity to reduce the gap, but it's never going to be eliminated."
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Darren Eales bemoans PSR
Toon CEO Darren Eales opened up about Newcastle wanting to spend more but being unable to do so under the current system. He told reporters: "The first thing is, to go back to the basics of PSR rules. You are allowed to lose £105million allowable losses over a three-year rolling basis.
"That's the sort of background that we have to deal with in terms of complying with PSR. We have been clear on this, ownership has committed to spending to the maximum amount we can within the rules.
"If the rules weren't there, we'd spend more. Because we are an ambitious ownership group that is looking to drive Newcastle to be sustainable and competing for trophies. Ultimately, we want to be winning the Premier League - but we have to do it within the constraints of what we have.”
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