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3 months ago
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A new report from Sky Sports on Thursday.
The broadcaster talking about the compliance of Premier League clubs with PSR.
Sky Sports claiming that at least six clubs need to raise cash before we get to July 2024, almost certainly by selling one or more players, to avoid breaking the PSR restrictions.
The six clubs they name are Leicester, Chelsea, Forest, Everton, Aston Villa and Newcastle United.
Sky Sports report – 6 June 2024:
‘As many as six Premier League clubs face having to sell players before the end of June in order to comply with the division’s Profit and Sustainability Rules (PSR).
That date is the cut-off point for the financial year across the top flight, where clubs must show they have made losses of no more than £105m over the last three years – or less if they have spent some of that time outside the top flight.
Chelsea, Aston Villa, Newcastle, Everton, Nottingham Forest and Leicester are all under the pressure of losing a key asset or two, Sky Sports News understands, before the change over into the new financial year.’
This is not exactly breaking news where Newcastle United are concerned.
On Tuesday morning the usually very reliable Athletic said that their information was that Newcastle United needed to raise cash before the end of this month, to avoid breaking PSR rules.
The 30 June 2024 is the last day of this accounting period and so the final day of the three year PSR cycle covering the 2021/22, 2022/23 and 2023/24 seasons.
The Athletic reported that Newcastle United are ‘…attempting to raise funds through player sales — those of ageing or fringe players, but not their prized assets like Guimaraes and Isak — yet are also looking to shore up fresh commercial deals by the end of this month.’
This is a ‘little’ different to the predictably far more sensationalist Sky Sports report today, which included this: ‘Chief executive Darren Eales has said publicly that a prized asset will need to be sold to stay in line with PSR.’
This is simply not true. Back in January 2024 when the 2022/23 Newcastle United accounts were released, he said that like plenty of other clubs have done in the past, such as Liverpool with Coutinho, a first team player may be sold at some time in the future to allow NUFC the headroom to spend far more than that sale price on new signings. The expression ‘churning’ was what Darren Eales used at the time.
Eales never said a ‘prized asset will need to be sold to stay in line with PSR’, certainly not this summer.
My understanding always has been that there would be a certain shortfall to make up in this financial year but not a huge one. Certainly, as the man at The Athletic said on Tuesday, this is not a case of Eddie Howe having to sell his best players.
I think this has been very much planned for and I think one or more fringe players will be sold this month. Amongst the players I do expect to leave before next season kicks off, I think Miguel Almiron is a knocking bet, somebody who I think can generate a £20m-£30m transfer fee with the Saudi Pro League a likely destination.
However, outside of the core 15 or 16 players who I can’t imagine Eddie Howe will have any intention of selling, we have a fair few squad players who won’t be near first choice next season and who will also be able to generate decent money.
As Chris Waugh of The Athletic reported as well in that Tuesday report, Newcastle United looking to add more and more commercial deals as well, Plus, I don’t know whether say an initial up front payment may be paid by Adidas this month, to help ease those PSR pressures.
As the man from The Athletic made clear as well though, even if Newcastle United do have to bring in some cash these next three or four weeks, that is very different to the overall picture going forward. In terms of overall this summer, The Athletic reporting that Eddie Howe will still be able to spend say around £100m on new signings, an amount that could be higher again, depending on how many squad players are sold and for how much.

 
