Newcastle have ‘definitely’ breached financial rules, Nottingham Forest also at risk
Newcastle United have “definitely” breached Uefa’s financial rules and Nottingham Forest are also at risk of failing to comply with the regulations.
Newcastle have been close to breaching the Premier League’s profit and sustainability rules (PSR) since their Saudi-led takeover in 2021.
Meanwhile, Forest were docked four points after being charged with a PSR breach in the 2023-24 campaign.
The Premier League duo’s accounts will be assessed by Uefa this year, with Eddie Howe’s side playing in the Champions League and Forest competing in the Europa League.
Former Man City financial adviser Stefan Borson exclusively told Football Insider Newcastle have definitely breached the governing body’s football earnings regulations, while Ange Postecoglou’s side are also close to falling foul of the spending rules.
Newcastle United face deductions after Saudi deals
Clubs in European competitions were required to keep spending on player wages and fees to 80 per cent of revenue in 2023-24, while they were permitted to lose up to £77million over a three-year period.
However, the squad cost control ratio dropped to 70 per cent in 2024-25 and will remain at that level moving forward.
Speaking exclusively to Football Insider, Borson said: “Newcastle will definitely have breached on football earnings for last season.
“We know that because they were very close at £105m, and the Uefa limit is less than £105m.
“So, we know they’re going to breach there, especially because we also know that you’re going to have to make certain deductions that they’ve disclosed in their own accounts for deals with Saudi Arabia.
“Nottingham Forest are probably similar on the football earnings rule, and probably close-ish on squad cost control rules, just in terms of wages.”
Newcastle and Forest have both been making efforts to close the gap at the top of the Premier League table.
Newcastle United could face possible UEFA fine
Newcastle smashed their club-record revenue in their latest published accounts for 2023-24 after their overall turnover surged from £250m to £320m, but their wage bill jumped from £187m to £219m.
Forest also posted a record-breaking revenue for 2023-24 after their turnover improved from £155m to £190m, while their wage bill increased from £145m to £166m.
Uefa confirmed in July Chelsea have been fined £26.7m and could be fined a further £51.2m if they don’t comply with the governing body’s rules in the next four years after breaching its financial regulations.
Meanwhile, Aston Villa have been fined £9.5m, with the potential of a further £12.9m penalty if they fail to comply in a three-year period.
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