How Premier League Financial Rules Shield the Big Six and Force Clubs Like Aston Villa and Newcastle Into Player Sales

When Aston Villa faced Newcastle at the start of last season, fans from both sides chanted "Premier League, corrupt as f*ck!" Their frustration stemmed from the perception that the Premier League's Profit & Sustainability Rules (PSR) were limiting their clubs' growth. Newcastle's then-manager Eddie Howe highlighted the difficulties of selling players they wished to keep and being unable to bring in new talent due to these restrictions. Unai Emery, managing Villa, echoed these concerns, urging a review of the rules, suggesting that while financial controls prevent bankruptcies, they also cap ambitions for well-managed clubs.

Before the 2026-27 season, the Premier League replaced PSR with new regulations: Squad Cost Ratio (SCR) and Sustainability and Systemic Resilience (SSR). Yet, some believe these changes may not help clubs like Villa and Newcastle close the financial gap with the elite; instead, that gap might widen.

The Origins and Effects of PSR

Introduced in 2013 as a response to UEFA's Financial Fair Play (FFP), PSR aimed to curb reckless spending by owners. It limited clubs to losses of no more than £105 million over three years, allowing non-European teams to remain competitive domestically. However, this loss threshold never adjusted for inflation, increasingly burdening ambitious clubs with new ownership who lack the revenue streams of traditional top teams.

Kieran Maguire from The Price of Football podcast points out that these rules have effectively stopped new owners from investing heavily in players to replicate success stories like Chelsea under Roman Abramovich or Manchester City under Sheikh Mansour. This has fueled accusations that the Big Six enjoy different treatment compared to other clubs.

Key Player Departures and Squad Changes

Despite ongoing investigations into breaches of financial rules involving some elite clubs, Newcastle and Villa spent the summer rebuilding after losing important players. Newcastle sold stars like Anthony Gordon and Bruno Guimaraes, while Villa parted with six starters from their Europa League final-winning squad, including Emiliano Martinez and Lucas Digne. Fans found the sales frustrating, especially with Chelsea acquiring Morgan Rogers despite not qualifying for the Champions League and Spurs splurging after two poor seasons.

Villa’s financial struggles partly result from spending over 90% of their income on wages and having a reputation as poor sellers until recently. Unlike the likes of Chelsea or City, neither Villa nor Newcastle can stockpile players or recover large transfer profits easily.

Maguire notes that player valuations are subjective and that Premier League rules allow more flexibility than UEFA when it comes to recording profits from player transactions, which may explain some convenient deals this summer.

New Regulations: SCR and SSR

The switch to SCR and SSR aims to limit a club's on-field spending to 85% of football-related revenue plus net player sale profits, a looser cap than UEFA's 70% for European clubs. Premier League CEO Richard Masters explained this offers clubs more flexibility to invest gradually, potentially helping chasing clubs compete better.

The new system assesses clubs annually rather than over three years, encouraging timely financial management and less reliance on long-term balancing acts. Additionally, focusing on squad costs allows investment in other areas, such as stadium renovations like those ongoing at Villa Park.

Views From Within the League

Both Newcastle and Villa supported the new framework, but others like Crystal Palace chairman Steve Parish warn that the challenges will persist. Parish anticipates increased pressure to sell academy players for profit, a key complaint under PSR. Clubs like Brentford, Brighton, Bournemouth, Fulham, and Leeds, seen as aspirational, opposed SCR, signaling concern about the new system.

Masters argues that removing cost controls entirely would create chaos and widen financial gaps even more. He points out Villa's recent European successes and Newcastle's ongoing rebuild as examples of clubs thriving within the current structure, emphasizing the excitement and unpredictability of the Premier League.

Competitive Balance or Closed Shop?

Supporters often see disparity, noting that clubs spending the most on wages have won six of the last nine titles. Some question the league's competitiveness and credibility. Still, Maguire believes fan loyalty is rooted in support regardless of governance issues, with winning remaining paramount to most supporters.

Despite grumblings about corruption, the popularity of the Premier League remains strong, especially among fans of the Big Six, who appear content with the status quo and unlikely to abandon the league anytime soon.

• Big Six: Manchester United, Liverpool, Arsenal, Tottenham Hotspur, Chelsea, Manchester City
• PSR Loss Limit: £105 million over three years
• SCR Spending Cap: 85% of football-related revenue + net player sales profit
• UEFA FFP Spending Cap: 70% of football-related revenue
• Key Newcastle Departures 2023: Anthony Gordon, Bruno Guimaraes, Sandro Tonali
• Villa Europa League Final Starters Sold: 6 out of 11, including Emiliano Martinez and Lucas Digne