Newcastle United is currently facing a deadline to comply with the Premier League’s Profit and Sustainability Rules (PSR) by Sunday. The club has been considering selling Anthony Gordon to Liverpool in order to raise funds and meet the PSR requirements. This raises the question: why do they have to sell?
The PSR was introduced by the Premier League to encourage clubs to operate within their financial means. It limits a club’s losses to £105 million over a three-year period. The accounting deadline for Newcastle is this Sunday, and failure to comply could result in a point deduction next season.
Despite the new financial backing from their Saudi owners, Newcastle still needs to balance their books. This is why they are looking to offload key players like Gordon and striker Alexander Isak. Time is of the essence for Newcastle, as the clock is ticking towards the deadline.
Last season, both Everton and Nottingham Forest were handed point deductions for breaching the PSR. Even with their newfound wealth, Everton finds themselves in a similar situation as Newcastle this summer. Aston Villa and Chelsea are also under scrutiny for potential breaches of the PSR.
Clubs like Newcastle, Everton, Aston Villa, and Chelsea have been exploring ways to avoid breaching the PSR. According to BBC Sport, these clubs have been looking to exploit certain loopholes. When a club sells a player, any profit from the sale is recorded in that year’s accounts. However, the amount paid by the buying club is spread out over the length of the contract through an accounting practice called amortisation.
This means that if two clubs agree to sell players to each other, especially academy players, it can provide a significant financial boost for both clubs. While this strategy may not directly apply to Liverpool, as they are already within the PSR limits, it could benefit Newcastle if they were to sell Gordon to Liverpool for more than the £45 million they paid for him.
As the deadline approaches, Newcastle’s ability to negotiate for a higher price diminishes. Perhaps this is what Liverpool is waiting for, as they have reportedly rejected the latest offer. This situation is definitely worth keeping an eye on over the weekend, as Newcastle desperately needs to sell players in order to avoid a potential points deduction next season. The size of the breach could result in a deduction of up to 10 points.
In conclusion, Newcastle is under pressure to meet the Premier League’s PSR by Sunday. They are considering selling Anthony Gordon to Liverpool in order to raise funds and balance their books. Failure to comply with the PSR could result in a points deduction next season. Other clubs, including Everton, Aston Villa, and Chelsea, are also facing scrutiny over potential breaches of the PSR. These clubs have been exploring loopholes to boost their profits through player sales. As the clock ticks towards the deadline, Newcastle’s ability to negotiate a higher price for Gordon decreases. This story is definitely worth following over the weekend, as the consequences of a potential breach could be significant for the club.