Newcastle United are one of many teams who will benefit from a hefty loss falling from their three-year PSR cycle
July is almost upon us and brings with it a new, rolling three-year period for the Premier League's Profit and Sustainability Rules [PSR]. On Tyneside, the passing of the June 30 deadline is expected to kickstart Newcastle United's summer spending.
As it stands, top flight sides can't lose more than £105m across a three-year period and clubs like Everton and Nottingham Forest have suffered the consequences of breaking such rules, facing points deduction penalties as a result. The Magpies have done well to avoid such sanctions and after a summer of panic 12 months ago, now find themselves on a firmer financial footing as they return to the Champions League.
But with the PSR deadline finally here, where exactly do Eddie Howe's side stand, what does it mean for incoming deals and which of Newcastle's Premier League rivals find themselves in a perilous position this time around?
Newcastle's standing
Newcastle United fans need no reminding of the fact Elliot Anderson and Yankuba Minteh were sacrificed on the PSR deadline of 2024, moving to Nottingham Forest and Brighton, respectively, in the final hours of June. Two exciting talents, offloaded purely for financial purposes due to rules many believe need changing - including Eddie Howe himself.
The frustrating nature of last summer acted as a warning for Newcastle chiefs to not get themselves in a similar position further down the road. As such, revenue streams have been increased - once again - other players have been sold, sometimes against Howe's wishes, and the head coach has continued to work wonders without fresh faces being introduced to his squad.
The January exits of Lloyd Kelly and Miguel Almiron - for a combined £30m - coupled with the north east outfit booking their spot in the Champions League next season, have helped further ease any concerns regarding financial sanctions down the line.
The start of a new three-year financial period means the 2021/22 season - when Newcastle posted a £73m loss - drops off the PSR cycle leaving only the losses of £72m and £11m in the last two years. Allowable deductions are taken into consideration for investment into infrastructure, the women’s team, academy cost and initiatives in the community, thought to equal around £20m-per-year in Newcastle's case.
This leaves plenty of headroom for additional spending in the coming months, thought to be around £70m, while outgoing transfers and the arrival of more commercially lucrative deals will be sought to continue balancing the books.
What it means for July
Eddie Howe's first-team has not been strengthened for close to two years. The 2025 January window saw no bodies through the door, while two of the club's signings last summer - in Lloyd Kelly and Odysseas Vlachodimos - have proved to be pretty underwhelming for different reasons.
William Osula, another 2024 summer signing, has been used in a bit-part role, while the transfer window that preceded his arrival saw only young, under-21 prospect Alfie Harrison through the doors at St James' Park. As such, a dose of fresh blood is greatly desired from both inside and outside the club this summer.
So far, Newcastle have been unsuccessful in their attempts to recruit shiny new additions, watching the likes of Joao Pedro, Bryan Mbeumo and Dean Huijsen opt for other suitors. Thankfully, movement is expected on James Trafford in the next 48 hours with United using the start of a new financial period to their advantage.
United also have targets being assessed to fill the void at right-wing, while there is a strong desire to strengthen at the heart of Howe's defence. Don't be surprised if the club end up venturing to Europe, either, as they battle Premier League rivals for players in England's top flight.
Pre-season starts in a matter of days and United's first friendly comes on July 19. Howe wants players in as soon as feasibly possible after recently talking about United using 'speed' to get deals over the line.
That has not came to fruition but with the arrival of a new three-year period, a clean slate, of sorts, will allow Newcastle to finally kick on and end the long-running transfer drought experienced in recent years. Patience has been the buzzword of the summer to date and there is hope the wait will pay off in the immediate future.
Who's in trouble?
After recording losses of £85.4m and £119.6m across the last two seasons, Aston Villa have been expected to offload talent ahead of the June 30 deadline. This was music to the ears of Newcastle, who have long admired Midlands midfield talent Jacob Ramsey.
However, Aston Villa are said to be considering using a loophole already exploited by Chelsea. Recent reports suggest Unai Emery's side have been considering selling their women’s team for the last 18 months.
The decision to sell Chelsea’s women’s side to a sister company for nearly £200m helped the west London club comply with PSR rules last year - while their balance sheet recorded a pre-tax profit of £128.4m for the period of 2023-2024. The move, should Villa go ahead with it and the Premier League allow it, would likely again raise eyebrows and spark anger among rivals who have sold key players to stay within PSR limits.
Newly-promoted Burnley are also in need of player sales to stave off the threat of sanctions, benefitting Newcastle in their pursuit of goalkeeper James Trafford.