PSR rules are being replaced by UEFA's on cost ratio laws, a situation that has left Newcastle United treading carefully
Newcastle United CEO David Hopkinson
Newcastle United CEO David Hopkinson
View Image
Newcastle United are in conversation with UEFA over their finances as they encounter the new squad cost ratio rules (SCR).
The Magpies have refused to comment on whether the £172 million stadium leasehold transaction - in which they effectively sold their ground to themselves - has put them in danger of a UEFA rule breach.
Since the club released their accounts for 2024/25, reports of a possible fine from UEFA for breaching rules have circulated. The Magpies are refusing to comment beyond their public briefing held on Monday but believed to be discussing their business with European football's governing body.
What now seems clear is that, unlike previous windows, when Newcastle have been able to have a summer transfer splurge, and after spending around £220m last summer, United will have to be disciplined.
*Get Chronicle Premium now for just £1*HERE– exclusive news and features, our NUFC and Academy notebooks, John Gibson's columns plus an ad-lite experience****
Newcastle can spend when the summer window opens, but as CEO David Hopkinson told Chronicle Live on Monday, the club will have to sell a star player in order to make a box office signing. UEFA rules for this season state that expenditure on the squad must not exceed 70% of total revenue and profit on player sales.
If Newcastle have breached rules they can expect a fine from UEFA. Aston Villa were handed a £9.5m fine this year for doing something similar while Chelsea were fined £27m although it is believed that a Newcastle fine would be closer to Villa's punishment according to financial observers.
What Newcastle have said about UEFA rules, via financial supremo Simon Capper, is: "Because of the consequence of the profit calculated on the sale, it gives us a significant amount of PSR headroom.
"The ability to deploy that PSR headroom (the old rule) is very limited because we have to comply with UEFA rules and because the PSR regime is coming to an end, so that profit does not role forward into squad cost. In a very narrow window, yes (it gives us more scope to spend on players), but we are very constrained in how we can use that."
When asked by Chronicle Live if the club are still capable of a "box office" signing, Hopkinson insisted they were in a position to do that, but admitted big-name players may also have to leave to fund more spending.
However, any sales will only be sanctioned in the best interests of the club and on their terms.
"We can do that," he said. "But we might not be able to do that without selling somebody.
"We haven’t got an overall strategy with regards players out, necessarily.
"We think through what players might or might not want to do this summer. But if an Isak-like scenario presents itself again, any player under contract is going to leave on our terms, and we’re going to maximise the opportunity that might represent for the club."
Chronicle Live approached Newcastle for comment on the matter on Wednesday. However, Hopkinson spoke in great depth about "compliance" with UEFA rules earlier this week.
United, like every other Premier League club, are working hard to do business around the relevant framework.
Content Image
Content Image