Newcastle United announced record revenues today as well as the first profit since the PIF took over at St James’ Park.
David Hopkinson briefed the media on Monday on the financial gains the club has made, which were boosted by the sale of the leasehold on St James’ Park to a new subsidiary.
The £171.2 sale turned what was going to be a huge loss into a profit and also helped the Magpies avoid sanctions for breaching PSR.
At least it did in the Premier League. They may not be so lucky when it comes to UEFA’s rules, as a new report explains.
As reported by The Times, Newcastle still face a potential financial penalty for breaching the strict rules enforced by UEFA.
Unlike the Premier League, UEFA doesn’t allow internal asset sales figures to be included as income.
Aston Villa and Chelsea both previously used this method to balance their books, and it was fine in the eyes of the Premier League; however, UEFA slapped both clubs with hefty fines.
Chelsea were fined £27million, while Villa had to pay £9.5million under settlement agreements with UEFA.
Things get even murkier when you consider that UEFA’s three-year loss limit is a paltry £52 million and the Squad Cost Rules limit clubs to being able to spend 70% of their revenue on player transfers and wages. It was the latter rule that caught out Chelsea and Villa.
Newcastle’s three-year losses up until June 30, 2025 totalled £181.2million, but it can write off some spending, such as on infrastructure projects or on the academy. The reporting dates for Newcastle’s accounts and UEFA’s differ, too, and Newcastle could take into account some of the money from the sale of Alexander Isak to reduce the loss even more.
We will have to see how this all develops, but it’s looking highly likely that the club is going to be hit with a financial penalty for trying to be competitive.
We have issues with PSR/SCR as it is, but UEFA’s being stricter is absolute insanity. How are up-and-coming clubs expected to be able to compete at the highest level when they’re penalised for trying to grow their club? It’s not Newcastle’s fault that other clubs try to gouge us for more money whenever we show interest in a player.
The rules need to be directed more at the transfer market than at the club’s accountants. Or, just let the money flow freely. We don’t have the answers, but we do know that the current regulations are destroying the game.