Much of Newcastle United’s transfer business has been hampered by PSR.
The Magpies have been forced to sell key assets of considerable use to Eddie Howe to avoid a points deduction.
Many within Newcastle United have used the phrase “short-term pain” because they believe the sales will lead to better days.
In the summer PSR forced Newcastle to sell Elliot Anderson and Yankuba Minteh to their Premier League rivals. Although the Magpies received Odysseas Vlachodimos in return, their exits are sure to be a horrible feeling for Howe after seeing how well they have performed at Nottingham Forest and Brighton respectively.
Throughout the January transfer window, the mantra was that Newcastle had to sell before buying. Sporting director Paul Mitchell sanctioned Miguel Almiron and Lloyd Kelly’s exits – a move that should see Newcastle pocket around £31m.
Sponsorships have been a big topic of discussion on Tyneside as of late. The PIF are keen to continue investing in the club but have not been able to because of Premier League sponsorship rules.
However, on Friday a big decision was made in the courts regarding those rules. Here is what happened and how exactly it affects Newcastle.
Non-Executive Chairman Yasir Al-Rumayyan waves to the fans during the Premier League match between Newcastle United and Leicester City at St. James…
Photo by Serena Taylor/Newcastle United via Getty Images
READ MORE – £73m PSR boost is one of three reasons Newcastle United should be positive despite quiet January
The Premier League suffered a huge blow to their reputation after a tribunal had deemed its sponsorship rules – which were in place for almost three years – null and void.
First reported by the Daily Mail, the ruling could begin a slew of mega compensation claims from those affected. The ruling ultimately sided with Manchester City – who appealed after having deals blocked in 2023.
This ruling comes after it was announced that the Premier League was keeping PSR for at least another season. The announcement was a boost for the Magpies transfer plans as Newcastle will receive a £73m PSR boost which they may not have received if the proposed rules were put in place.
When asked to explain the ruling in Layman’s terms, football financial expert Kieran Maguire confirmed that clubs will now be able to arrange sponsorship deals with companies connected to owners without the Premier League overruling the agreed sums between 2021 and 2024.
The PIF began advertising at St James’ Park in January in an attempt to drip-feed money into the club – sponsorships like that could now be worth considerably more.
Clubs can now arrange sponsor deals with companies connected to owners and PL can’t overrule the sums agreed for 2021-24
— Kieran Maguire (@KieranMaguire) February 14, 2025
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In November 2024, the original sponsorship rules were amended. So a fresh lawsuit to challenge them could follow.
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Will Newcastle be affected if they qualify for the Champions League?
Newcastle take on Man City on Saturday in a game which is vital for the top-four race. Whoever wins will finish the game week in fourth place after Chelsea were beaten by Brighton on Friday night.
When asked how this impacts Newcastle’s ability to receive lucrative sponsorships, Magure confirmed that it is unlikely that Newcastle will be able to receive a big influx of money from sponsors because of the UEFA rules that are in place.
Unlikely as UEFA rules apply if get into Europe
— Kieran Maguire (@KieranMaguire) February 14, 2025
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UEFA have adopted similar sponsorship rules to the Premier League to ensure no clubs can buy their way to winning the competition – meaning that Newcastle could still be in a position where they cannot bring new lucrative sponsorships on board if they qualify for the Champions League next season.
There is a chance that English clubs could repeat their legal approach to the Premier League’s sponsorship rules with UEFA, but that still remains to be seen.
