Newcastle United have suffered a fair bit under profit and sustainability rules (PSR) in recent years.
Just over a year ago, Newcastle were scrambling to comply with the Premier League’s PSR rules, only just avoiding a potential points deduction.
The Magpies had to raise a significant amount of revenue before June 30, 2024 or else they would have been sanctioned by the Premier League.
Newcastle managed to avoid a points deduction through the last-minute sales of Elliot Anderson to Nottingham Forest for £35million and Yankuba Minteh to Brighton & Hove Albion for £33million.
Although Newcastle’s PSR situation is a lot rosier at present, a new opportunity has now presented itself for them to give themselves even more wiggle room.
Shania Hayles of Newcastle United celebrates scoring Newcastle United's fourth goal of the game during the Barclays Women's Championship match between Blackburn Rovers and Newcastle United at Ewood Park on May 04, 2025
Photo by Harriet Massey/Newcastle United via Getty Images
Fellow Premier League side Aston Villa have reportedly moved to sell their women’s team to help comply with their PSR situation.
Villa have agreed a deal to sell their women’s team to V Sports, their parent company founded by the club’s billionaire owners, Wes Edens and Nassef Sawiris.
TBR Football finance expert Adam Williams believes Villa’s decision, which follows in the footsteps of a similar call made by Chelsea, should provide food for thought for the likes of Newcastle.
“With Chelsea and Aston Villa having sold their women’s teams to themselves to book an artificial profit, Newcastle have effectively been given the green light to do exactly the same,” Williams exclusively told TBR Football.
“I think Newcastle could probably justify a similar price to the Villa deal, which has gone through at £55million.
“Yes, Newcastle’s women are in a lower division, but you’re valuing based on the potential of the team as an enterprise as opposed to their current circumstance in women’s football – that’s what I’d argue, anyway.
“Being able to justify the deal is key here. You can’t just wave through the sale of the women’s team at whatever price you like. It has to reflect fair market value, and there is a very rigorous Premier League test that examines whether it meets that threshold.
“This season, Newcastle don’t need the PSR headroom than a £50million-plus deal would create. As the financial year has rolled over, they have a lot more flexibility to spend.
“However, that isn’t always going to be the case. PIF have said they will spend to the very limit of PSR, so it stands to reason that they are probably going to be close to the threshold at some point in the next three financial years too.
Aston Villa have agreed a deal to sell their women’s team to V Sports and a stake in the operation to prominent US-based investors.#AVFC
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“And because PSR is assessed over a rolling three-year period, they could create more headroom for themselves in future years by selling the women’s team now.
“If I was them, I’d be doing this as quickly as possible before the loophole is closed.
“Clubs voted to keep the loophole open at the last shareholder meeting, but it will be closed just as soon as they can get the two-thirds majority they need to change the rules.
“When might that happen? Who knows, but it will be whenever it is in a two-thirds majority of the clubs’ interests to do so. So I’d be doing this instantly if I was Newcastle while it’s still fair game.”
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Newcastle’s current PSR situation
Newcastle are now into a new three-year PSR cycle that has seen their historic £145million losses from 2021/22 and 2022/23 disappear.
The Athletic has estimated that Newcastle can lose up to £83million in 2024-25 and remain compliant with PSR.
In addition, the upcoming season will see Newcastle in the Champions League, which means far higher revenues are expected.
Nevertheless, as Williams has said, the Magpies have the chance to expand their headroom even further – and they should consider it before the opportunity disappears.