Key figure in Newcastle takeover has now exposed the cracks in PSR as Leicester escape punishment
The Profit and Sustainability Rules are among the worst changes to the Premier League since Antony’s arrival at Manchester United.
These hastily established regulations were implemented to curb Newcastle United’s rapid development after the Saudi PIF takeover.
The Premier League was anxious that the Magpies might leverage their owner’s vast wealth to climb the rankings similar to how Manchester City did after Sheikh Mansour’s takeover at Maine Road.
In a frantic effort to preserve the existing hierarchy—where the top six possess significantly more influence than the other 14—the Premier League introduced Financial Fair Play (FFP) rules modeled after those of UEFA. FFP evolved into PSR, but the objective remained unchanged. Even though these rules have been in place for over a decade, the allowable loss limit has not increased since their introduction, even as transfer fees have soared.
Delighted to have acted for LCFC against the PL in this important appeal. https://t.co/pOEQHlpMTF
— Nick De Marco KC (@nickdemarco_) September 3, 2024
Leicester City has effectively overcome the Premier League regarding PSR.
The club faced challenges after surpassing the £105 million loss limit, but an independent commission has determined that the Premier League cannot penalize Leicester, as the investigation occurred while the club was in the Championship and outside of the Premier League’s jurisdiction.
Sports lawyer Nick de Marco, who played a key role in the Newcastle takeover, represented Leicester and was understandably pleased with the outcome.
This situation highlights vulnerabilities in the PSR, revealing a loophole that the Premier League overlooked when hastily drafting the regulations.
Newcastle is awaiting the result of Manchester City’s battle with the Premier League. While this situation doesn’t impact Newcastle directly at the moment, the Premier League’s recent struggles in PSR cases is a positive development.
We’re also still waiting for the verdict on Manchester City’s Associated Party Transaction case, which is another rule aimed at keeping Newcastle down. This case will have ramifications for Newcastle, possibly explaining why our training ground, stadium, and training kit currently lack sponsorship.
If Manchester City wins that case, Newcastle could leverage the vast resources of the PIF’s numerous companies to secure sponsorship. Thus, it makes sense to hold off on partnering with someone now, especially if they can use PIF funding to boost their accounts in the future.