Nuno Espirito Santo Eddie Howe Newcastle United
(Credit: Hasan Karim, Breaking Media)
Stefan Borson
Tue 1 July 2025 16:37, UK
Newcastle United and Nottingham Forest could be at risk of breaching the financial rules next season.
The Premier League duo agreed last-ditch sales to avoid a potential profit and sustainability (PSR) breach for 2023-24, but they faced no such issues in the latest campaign.
Newcastle will be playing in the Champions League next season after finishing fifth in the Premier League table, while Forest’s seventh-place finish secured them a spot in the Conference League.
Finance expert Stefan Borson exclusively told Football Insider the top-flight duo could struggle to comply with Uefa’s financial rules after Chelsea and Aston Villa have both breached the regulations.
Clubs in European competitions were required to keep spending on player wages and fees to 80 per cent of revenue in 2023-24 – the year currently being assessed – while they are permitted to lose up to £77million over a three-year period.
However, the control ratio dropped to 70 per cent in 2024-25 and will remain at that level moving forward.
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Newcastle smashed their club-record revenue in their latest accounts for 2023-24 after their overall turnover surged from £250million to £320million, but their wage bill jumped from £187million to £219million.
Forest also posted a record-breaking revenue for 2023-24 after their turnover improved from £155million to £190million, while their wage bill increased from £145million to £166million.
Chelsea and Villa are expected to be sanctioned this week after holding talks with Uefa.
Eddie Howe at Newcastle United
Eddie Howe led Newcastle back into the Champions League (Credit: Imago)
Newcastle and Nottingham Forest to get sanction indication this week
Borson revealed Chelsea and Villa’s sanctions will provide an indication on what punishment Newcastle and Forest could face if they breach the financial rules.
He told Football Insider: “These will be a good indicator of the new regime because this was the first year in which it was tested with the losses part.
“This will be a good indicator of what will happen next season to some other teams because it’s very likely that Nottingham Forest and Newcastle in particular, as well as Chelsea and Aston Villa, will also struggle to comply with Uefa rules.
“That’s partly because of the adjustments that they need to make to their numbers based on the internal transfers that Chelsea have got and Villa probably will have after this week, and related party sales which Newcastle have got in respect of Saint-Maximin and the swap deals that Forest and Newcastle have got in respect of the deal that they did last summer.
“We know all of that because in the back of the Newcastle United set of accounts, they have these disclosures related to what’s known as annex G, which are the disclosures of the adjustments that Uefa make to their numbers.
“There’s no question about the adjustments that Uefa make in respect to Newcastle because Newcastle have told us what they are, and they’re material. It’s like £30million off the top of my head, and that obviously makes the ability to hit the cap much harder.
“Obviously, they weren’t tested for the current season because they weren’t in European competition, but they will be tested next season because they’re in the Champions League.
“I think because of the way the rules work, there’s a very good chance that they will breach and, therefore, they will also be subject to these sanctions as well.
“As I say, this is the first time with the Villa and the Chelsea situation that we’ll see how Uefa looks at breaches of this part of the rulebook.”
Premier League table top seven
Nottingham Forest finished seventh in the Premier League table (Credit: Hasan Karim – Breaking Media)
Newcastle ready new Anthony Elanga bid
In terms of on-field matters, Football Insider revealed on 30 June Newcastle are readying an improved offer for Anthony Elanga.
Eddie Howe’s side have identified the Forest star as their top winger target and are determined to land him after missing out on Joao Pedro.
Newcastle have already seen a £50million bid for Elanga rejected this summer.
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