The PSR issues that have plagued Newcastle United will soon be a thing of the past.
Progress under PIF has been significantly slowed down by the Premier League Profit and Sustainability Rules.
Newcastle United were forced to sell Elliot Anderson and Yankuba Minteh last summer to avoid a points deduction, while Eddie Howe had to make do with no major signings.
In order to navigate PSR, Newcastle have been trying to increase their revenue. This week, Newcastle announced revenue of £320m for 2023/24 – a staggering £70m increase from the year prior.
PSR has been wrongly stopping Newcastle, but it seems club chiefs are now getting on top of financial issues.
Photo by James Gill - Danehouse/Getty Images
Photo by James Gill – Danehouse/Getty Images
Darren Eales informs Newcastle United fans of ‘good news’
Newcastle fans are expecting transfers after seeing the club’s healthy accounts published this week.
After a frustrating January window, Newcastle have no choice but to invest this summer to avoid becoming “stale” in the words of Howe.
As per The Chronicle, Newcastle CEO Darren Eales has informed fans of “good news” regarding PSR, with a boost expected this summer.
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Eales said: “There’s going to be the factor of what revenues we’ll have next year. Are we in Europe? But the good news is, when I talk about PSR it’s always a yearly cycle so you can see we had to do our housework in these windows.
“These financial accounts 23/24, we had to do what we had to do but that year was a good year in PSR and is still part of our three-year cycle.
“So the good news is it gets a bit easier when you’ve had a good year like we’ve had in these accounts to invest in the future. But the amount will depend on a lot of factors. But it is a good cycle which is good news for us.”
£73m Newcastle United PSR boost explained
The current PSR regulations state that a top-flight club cannot lose in excess of £105million over a rolling three-year period.
Therefore, losses from three years ago will be removed from the cycle when the PSR window rolls over on July 1st.
Newcastle suffered £73m in losses in 2021/22, but that will soon be removed from the calculation.
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The latest 23/24 accounts revealed a loss of just £11.1m, so Newcastle will have much more financial flexibility from July onwards.
That should provide Paul Mitchell with a healthier transfer budget to upgrade Howe’s squad. Reports suggest Newcastle are targeting three major signings in the summer.