As the Premier League plans to introduce new financial regulations, Newcastle United are bound to be heavily impacted one way or another.
For the last few years, Newcastle have found themselves hindered by PSR guidelines that have stopped PIF flexing its financial muscles.
Having all that money is largely irrelevant if revenue isn’t strong enough. But, PSR is changing and Newcastle could benefit in the long-run.
Newcastle United’s spending power ahead of the January transfer window.
With rules in the Premier League moving to a Squad Cost Ratio (SCR) system from 2026/27 onwards, the only problem for Newcastle is that it may all come too late.
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PSR changes could have prevented Elliot Anderson sale
On the latest episode of An Arsenal Podcast, Ben Jacobs described how Newcastle’s sale of Elliot Anderson might have been avoided had the SCR rules been brought in sooner.
He suggested that, while in the past clubs like Newcastle might not have wanted to risk making more signings, they could now have the freedom to take that gamble under the new rules.
Jacobs said: “In Newcastle’s case, they basically had to sell Yankuba Minteh to Brighton and Elliot Anderson to Nottingham Forest. In Anderson’s case, he’s now one of the best midfielders in the Premier League, and Newcastle had to let him go because of PSR for £15 million.”
It’s worth noting here that Anderson was actually sold for £35m, but the Magpies bought Odysseas Vlachodimos for £20m from Forest which offset the Anderson deal dramatically.
Jacobs added: “In that scenario now, a club like Newcastle would probably say, we’re not going to sell Elliott Anderson, we’re going to stick with keeping the best player and somebody that’s Newcastle through and through, instead of taking that [money].
“And we are going to go over the 85% potentially, but we’re not going to go over that second red threshold, which means that we’re prepared to take the slap on the wrist because we think keeping that player or buying that player, if we’re talking more generally, is going to be better for the long-term health of our club.”
Frustratingly, Anderson has proven himself to be an incredible talent since leaving Tyneside. That was probably no secret for most associated with Newcastle. The problem was, Newcastle’s hands were tied with the Anderson deal; so much so, they didn’t even manage to include a buy-back clause.
Elliot Anderson return makes no sense
Obviously, it’s frustrating to see Anderson excelling elsewhere now. But, the temptation to bring him back to St. James’ Park should be avoided, if we’re talking from a purely financial point of view.
Selling Anderson for £35m (or £15m, depending on how you look at it), was a mistake. But re-signing him for close to £100m would be utter madness.
Who has been Newcastle United’s signing of the summer?
The deal for Anderson would set Newcastle back in terms of PSR (or SCR) massively and essentially undo all the hard work the club has put in to get the books balanced over the last year.
Instead, a £50m move for Scott McTominay makes more sense. He’s a more complete player, would cost half the price, and offers everything the Newcastle midfield is lacking right now.
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