Premier League chief makes new PSR claim that will stun Aston Villa and Newcastle United

The Premier League’s Profit and Sustainability Regulations (PSR) wreaked havoc in the summer just gone, forcing clubs to make significant sales to ensure they complied with the rules and in turn avoided punishments. It wasn’t just then that PSR caused issues, either, as the likes of Everton and Nottingham Forest were dealt points deductions for breaches last campaign.

To comply with PSR, Villa had to sell Moussa Diaby to Saudi Pro League outfit Al-Ittihad for a slight profit at £52 million just 12 months after signing him from Bayer Leverkusen for £50 million. Douglas Luiz was another player sacrificed as the Brazilian midfielder was included in a major swap deal with Juventus. Luiz was sold for £42.35 million while Samuel Iling-Junior and Enzo Barrenechea moved in the other direction for a combined £18.6 million.

Newcastle had to conduct their business in a similar manner as they cashed in on two attacking players to avoid a PSR-related penalty. Pacy Gambian winger Yankuba Minteh completed a switch to Brighton & Hove Albion for £30 million while Elliot Anderson left for Nottingham Forest in a £35 million package.

With Villa and Newcastle both qualifying for the Champions League in successive seasons, they should theoretically be able to compete financially with the Premier League’s so-called ‘big six’. That hasn’t been possible, however, with PSR severely limiting both clubs’ movements in the transfer market. If anything, Villa and Newcastle’s squads have probably weakened slightly rather than strengthened, making it very tricky to compete.

Premier League CEO strikes back at Aston Villa and Newcastle

The Premier League has come under a lot of scrutiny from both the clubs and their supporters as a result of recent struggles. There have been calls for a football regular to be implemented to make the likes of Villa and Newcastle better equipped to challenge the division’s elite. That’s not looking likely, however, as the Premier League’s CEO Richard Masters recently defended the current setup.

“In the Premier League, we have a financial system that has been built up over time with some very clear objectives,” Masters told Sky Sports. “Not just the PSR system, but the way revenue and costs are distributed and the parachute system. They’re all designed to create a fantastic football competition that preserves aspiration.

“If you’re a fan of a newly promoted club, you know the parachute system will protect investment going forward. You have the ability to rise up and challenge for European competition and maybe, if you stay there, one day challenge for the league.

“If you have a third party coming in and regulating from the side, looking at clubs’ business plans and constraining their ability to invest, that worries us. We’ve always been pro-investment within measured risk.

“The Premier League is not a pension fund. It’s a place where capital is at risk. There is no certainty of outcome. We worry that a new regulatory function might be risk-averse and inhibit clubs’ ability to invest.”

With the January transfer window now open, Unai Emery has a month to strengthen his squad but the club is again bound by PSR and will have to tread carefully. To add insult to injury, a recent vote by Premier League clubs passed changes to the league’s rules surrounding Associated Party Transactions (APT), hampering their ability to negotiate commercial deals that could unlock extra finances.