Newcastle United is experiencing its first significant setback since the PIF purchase.
Newcastle has had a mixed start to the season, with some impressive wins over large teams but only 11th in the Premier League table after 10 games.
Newcastle beat title-chasing Arsenal 1-0 on Saturday afternoon and have also beaten Tottenham and Chelsea this season while drawing with reigning champions Manchester City.
When it comes down to it – Newcastle have proven they can mix it with the Premier League’s best, yet Eddie Howe is still lacking a squad that can compete at the top.
PSR has prevented Newcastle from entering the Premier League title race
The Premier League Profit and Sustainability Rules have become a nightmare for Newcastle supporters.
The current criteria require top-flight teams to lose a set amount of money over a three-season period or suffer a points deduction, as Everton and Nottingham Forest discovered.
Newcastle were obliged to sell Elliot Anderson and Yankuba Minteh this summer to comply with laws, and the club continues to limit Howe’s transfer budget.
Despite the immense wealth of Newcastle’s Saudi Arabian owners, they have hardly been able to spend a penny.
As per Martin Samuel via The Times, he believes Newcastle “should be” in the title race if the restrictive PSR regulations did not exist.
He argues that Newcastle have to “pretend they are poor” due to rules designed to keep the elite at the top.
PSR might wreck Newcastle’s transfer plans
Newcastle ended up generating a net profit from the summer transfer window despite being obliged to sell before the PSR deadline in June.
It completely hamstrung the budget available to Howe and sporting director Paul Mitchell, and it is still holding the club back now.
Howe hinted that PSR will have an impact on Isak’s contract negotiations because the team must continue to be cautious with its spending.
Newcastle are looking to improve their team with a new right winger in January, but PSR has once again reduced the available money.
Newcastle are on the rise under new owners, but the tight PSR has forced them to plan for the long future.
