The Premier League will reportedly look to close a PSR ‘loophole’ that has allowed Chelsea to continue their lavish transfer spending.
For 18 months, Newcastle United have seen their spending on transfers restricted by the Premier League’s Profit and Sustainability Rules. Those rules dictate that clubs cannot make a loss of more than £105m over a three-year rolling period and have meant that the Magpies have had to be cautious to ensure they do not risk a points deduction.
Elliot Anderson and Yankuba Minteh were even sold last summer in order to avoid breaching those rules and receiving a points deduction like Everton and Nottingham Forest before them. However, whilst spending has been constrained on Tyneside, Chelsea have continued to spend heavily on transfers - with that outlay seemingly set to continue this summer.
The Blues, since Todd Boehly’s takeover of the club, have outspent all of England and Europe but have avoided PSR penalties through a number of loopholes. These have included selling the women’s team for a reported £198.7m and hotels that raised another £70m. However, those avenues could now be closed by the Premier League.
Premier League to close PSR 'loophole’
According to the Times, the Premier League will propose closing the loophole that allowed Chelsea to register a profit from selling their women’s team and hotels. This proposal will be put to all 20 Premier League clubs at a meeting this week.
As always, for the motion to pass, 14 of the 20 member clubs will have to vote in its favour. That threshold has proved very difficult to meet in various votes over the last few seasons.
The Premier League have yet to approve the value of Chelsea’s deal to sell their women’s team to a sister company and the Blues still face the threat of possible sanctions from UEFA whose financial rules are a lot stricter.
Newcastle United’s PSR position
PSR has severely impacted what Newcastle United have been able to do in the last three transfer windows, with no senior signings in either of the two previous winter windows. Will Osula is the only outfield player that the Magpies paid a transfer fee for last summer, whilst Lloyd Kelly, who joined on a free transfer for Bournemouth, has already left the club and will join Juventus on a permanent basis.
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This summer, though, the club are on a much sounder footing financially and Eddie Howe has spoken of his desire to see the club act quickly in the transfer market. “Speed is key because we have to be dynamic, we have to be ready to conclude things very quickly because good players don’t hang around for long,” Howe said following the final day of the season defeat against Everton.
“That’s always been my thought and my message on recruitment really because you can have a period when you think you have time - but then you look around quickly and you see that time has elapsed and you missed opportunities you won’t get again.”
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