Premier League Clubs Face Profit and Sustainability Rules Deadline
The Premier League’s Profit and Sustainability Rules (PSR) deadline is fast approaching, with clubs set to submit their accounts on June 30. The rules are in place to ensure that clubs operate within their means and avoid potential points penalties. According to Stefan Borson, talkSPORT’s resident football finance expert, some clubs may be heading for a “squeaky bum time” ahead of the deadline.
Clubs that have previously fallen foul of the rules include Everton and Nottingham Forest, but this time it appears that these two clubs are in the clear. However, four teams have raised concerns that they could struggle to comply with the PSR. Borson believes that only two of these teams are likely to have issues.
The clubs that have given cause for concern are Aston Villa, Chelsea, Newcastle, and Wolverhampton Wanderers. However, Borson notes that Chelsea have solved their PSR problems by selling their women’s team for £200 million. Similarly, Wolves have moved their accounting year-end from May 31 to June 30, which means that the sale of Matheus Cunha to Manchester United will be included in their current season’s accounts.
As reported by talkSPORT, Borson explained that Chelsea’s sale of their women’s team was a key factor in solving their PSR problems. “They sold their women’s team for £200 million and that solved all of the PSR problems for them,” he said. Meanwhile, Wolves’ decision to move their accounting year-end was also seen as a positive move. “Wolves moved their accounting year end from May 31 which would’ve meant that any sales that occur in June were in the 2025/26 year, they moved that year end to June 30,” Borson explained.
Newcastle’s struggles have been well-documented, but Borson believes that Aston Villa are the team to focus on. Despite having a decent season, Villa invested heavily and have high running costs relative to their revenue. However, they did receive a significant boost to their revenue from reaching the Champions League quarter-finals. According to talkSPORT, Villa made around £70 million from the Champions League, which helped to offset their costs.
In addition to their Champions League revenue, Villa also brought in significant amounts from matchday revenue, with ticket prices reaching up to £100 for some Champions League games. However, Borson notes that Villa’s spending has been high, particularly in the transfer market. The club brought in Donyell Malen and Andres Garcia permanently, and also signed high earners Marcus Rashford and Marco Asensio on loan.
As noted by talkSPORT, Borson’s analysis suggests that Villa’s financial situation is precarious. “They made about £70 million from the Champions League which was a great boost to their revenue,” he said. “They would have also done very considerable amounts on matchday because we know their ticket prices got up to £100 for some of those Champions League games and six big home games on top of that by the time you get to a quarter final.”
The PSR rules have caused headaches for multiple chairmen, including Chelsea’s Todd Boehly. As reported by talkSPORT, the rules are designed to ensure that clubs operate sustainably and avoid taking on too much debt. However, some clubs have found ways to circumvent the rules, including Chelsea’s sale of their women’s team.
In conclusion, the Premier League’s PSR deadline is fast approaching, and some clubs may be struggling to comply. According to talkSPORT’s Stefan Borson, Aston Villa are the team to focus on, given their high spending and revenue boost from the Champions League. While Chelsea and Wolves have solved their PSR problems, Newcastle’s struggles and Villa’s financial situation will be closely watched as the deadline approaches. As Borson noted, “Really the one to focus on is Aston Villa out of that group, because they had a decent season but invested very heavily, we know that the starting point and their running costs were very. very high relative to their revenue.”
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