‘Newcastle close to failing PSR’ as Liverpool’s Alexander Isak pursuit takes new twist
Newcastle will be “close” to failing PSR this year but Alexander Isak’s mooted move to Liverpool would be disastrous.
The Premier League’s profit and sustainability rules (PSR) have proven to be a curse for the Magpies in recent seasons.
Newcastle were forced to sell Elliot Anderson and Yankuba Minteh last summer, whilst also bringing in Odysseas Vlachodimos from Nottingham Forest.
Those deals were done with the motivation to avoid a sanction from the Premier League and they have become a particular source of frustration for some fans, as the departed players have blossomed, whilst the Magpies’ Greek shot-stopper has barely featured and is now available for loan.
This summer, Newcastle looked well-positioned after several frugal windows, but the club are now facing the prospect of a fine from UEFA next summer for failing their financial rules.
Speaking exclusively to Football Insider, finance expert Stefan Borson revealed that the Magpies would come close with PSR this year, but it would be no issue, thanks to Chelsea and Aston Villa both showing that the rules could be bypassed by selling assets, such as a club’s women’s team.
Despite having no real issues with the Premier League’s financial rules, Newcastle have struggled to get deals over the line this summer, missing out on Joao Pedro, Bryan Mbeumo, and Jarell Quansah.
Newcastle selling Alexander Isak would be disastrous
Borson told Football Insider exclusively that although selling Isak would be huge for the clubs’ compliance with various governing bodies, it would not be necessary thanks to loopholes in the rules.
He said: “You have to separate the challenges that they’ve had and will continue to have with the various PSR and UEFA FFP regimes. You have to separate that from the wealth overall of the backers of Newcastle. We know that the backers of Newcastle are incredibly wealthy and ultimately are the entity that’s pumped a billion dollars into those Club World Cup teams
“And we’re talking about potentially the party that’s going to put, I don’t know, £60-70m into Liverpool’s coffers if they buy Nunez. So they’ve got loads of cash.
“Liquidity is not the issue. PSR can be fixed now by moving assets within the group. And so I think that they would do that if it came to it.
“I don’t think PSR is an issue for Newcastle. That’s not to say that on the face of it they won’t be close. I mean, they were close last year. They’ll be close this year. But it’s not a problem anymore, PSR, because you just do the sorts of trades that Aston Villa and Chelsea have done. So, you don’t worry about PSR. And from the UEFA perspective, we know that Newcastle will have breached football earnings for 2024/25.
“And we also know that will cost them £5m because we’ve seen what Aston Villa spent on that breach. So it’s nothing, you know, it’s £3m. There’s loads of suspended stuff, but it’s just irrelevant. And when you enter into a settlement agreement, which Newcastle will do this time next year, you then buy yourself between three and four years of a relaxed regime. So again, they’ll be completely relaxed about that.
“So, Newcastle, I would think it’d be a disastrous thing for them to sell Isak, to be honest.”
Newcastle set to receive £10m windfall
Sources have told Football Insider that Newcastle are set to receive a £10m windfall from their pre-season tour of Asia.
Whilst funds are rarely an issue for the Magpies, given their owners’ riches, PSR and other rules make income extra valuable.
Newcastle are exploring various options in the transfer market this summer, and the boost to the coffers will be a welcome one.