How Premier League Financial Rules Shield the Big Six and Pressure Clubs Like Aston Villa and Newcastle

When Aston Villa faced Newcastle on the first day of last season, fans from both sides chanted "Premier League, corrupt as f*ck!" This shared frustration stemmed from their belief that the Premier League's Profit & Sustainability Rules (PSR) have held them back while protecting the traditional elite.

Before that match at Villa Park, Newcastle’s then-manager Eddie Howe explained to reporters that these rules forced clubs to sell players they wanted to keep and prevented them from signing new talent. He believed these challenges would not disappear soon. Unai Emery, managing Villa, echoed this sentiment, calling for a review of the financial restrictions in his programme notes.

"Financial control rules came to football to avoid bankruptcies and payment defaults with a good purpose. But, as professionals, we should review it, as this good tool will become a limitation for clubs that are doing good management, who’ll never be allowed to dream and get higher goals," Emery wrote.

The Premier League did introduce a new financial system ahead of the 2026-27 season, but some think the Squad Cost Ratio (SCR) and Sustainability and Systemic Resilience (SSR) may not help clubs like Villa close the gap with the elite. Some even suspect it could widen the divide.

A Fortified Elite

PSR was introduced in 2013 as the Premier League’s answer to UEFA’s Financial Fair Play (FFP) regulations. The aim was to prevent reckless spending and protect clubs from financial collapse. Unlike UEFA’s stricter limits, the Premier League allowed clubs to lose up to 3 million over three years, hoping to keep competition alive for teams outside European qualification.

But as time passed, many felt the loss limit stayed static and didn’t adjust with inflation, making it tough for ambitious new owners to invest heavily. Take Newcastle, owned by the Saudi Arabian Public Investment Fund since 2021. Despite immense wealth, they couldn’t spend anywhere near the amounts that the Big Six clubs manage because their revenue streams were still developing.

Kieran Maguire from The Price of Football podcast told GOAL, "The rules have stopped new owners from mimicking Roman Abramovich or Sheikh Mansour by splashing huge cash and taking big losses to build trophy-winning teams."

This situation has led to accusations that the financial framework favors the Big Six—Manchester United, Liverpool, Arsenal, Tottenham, Chelsea, and Manchester City—while restricting everyone else. Last summer’s transfer activity did little to change that perception.

Key Player Sales Shake Ambitious Clubs

Both Newcastle and Villa had to rebuild after losing important players due to financial pressures. Newcastle, unable to stop Alexander Isak’s move to Liverpool last summer, saw further sales including Anthony Gordon, Bruno Guimaraes, and Sandro Tonali this summer. Villa suffered even heavier losses.

Six starters from Villa’s historic Europa League final victory over Freiburg in May 2023 have been sold. While the departures of veterans Emiliano Martinez and Lucas Digne were expected, fans were shocked when young Morgan Rogers joined Chelsea—a club not even in the Champions League—and Chelsea then sent Alejandro Garnacho the other way.

The frustration grew as Tottenham began a lavish spending spree despite poor finishes in recent seasons.

Player Values and Financial Maneuvering

Villa and Newcastle's financial struggles partly stem from spending more than 90% of their income on wages for a long period, coupled with a reputation for poor player sales. Unlike Chelsea or Manchester City, these clubs can’t stockpile players or profit massively from transfers.

Maguire commented, "Players are like works of art; they have no fixed value. UEFA’s rules make it hard to book profits when players swap clubs within 45 days, but the Premier League is more relaxed." This flexibility means some transfers look engineered to boost profits on paper, aiding financial calculations.

Will New Financial Rules Make a Difference?

The Premier League’s shift to SCR and SSR introduces limits such as capping squad costs to 85% of football-related revenue and net profit or loss from player sales. Teams in Europe face a tighter 70% threshold.

"We’re giving more flexibility for clubs to invest over time to allow the chasing pack to compete," said Premier League CEO Richard Masters. "I think we’ve got a very good competitive balance in the Premier League and I hope the SCR reinforces that."

The league argues the SCR helps clubs invest in facilities and manage finances annually rather than over three-year cycles, encouraging real-time responsibility.

Mixed Reactions Among Clubs

Newcastle and Villa supported the new financial system, but Crystal Palace chairman Steve Parish warned that complaints about SCR and SSR will rise. He predicted selling academy players to balance books might increase, a major issue under PSR.

Parish also pointed out that clubs like Brentford, Brighton, Bournemouth, Fulham, and Leeds—some of the country's most ambitious—voted against SCR, signaling concerns.

Masters admitted removing all cost-control measures would lead to chaos and greater disparities. He emphasized that clubs want regulation, even if they differ on specifics.

"Villa have had fantastic success, playing in Europe four times and winning a trophy. Newcastle is in a period of transition with new signings and management. That’s the excitement of the Premier League. Everyone should be able to aspire here," Masters said.

Competitiveness and Credibility Debates

Some fans disagree, noting that clubs spending the most on wages have dominated recent titles. Questions about competitiveness and fairness persist, and some suggest the league’s credibility is at risk.

Maguire believes fan loyalty and viewing figures show that supporters often overlook governance issues if their club wins.

So, while some see corruption, the majority following the Big Six seem content, meaning current dynamics are likely to stay for a while.

• Profit & Sustainability Rules (PSR): Introduced in 2013, allowed up to 3 million losses over 3 years
• Big Six Clubs: Manchester United, Liverpool, Arsenal, Tottenham, Chelsea, Manchester City
• New Financial Rules: Squad Cost Ratio (SCR) limits squad spending to 85% of football-related revenue
• European Clubs: Face a 70% spending cap under SCR
• Key Player Sales This Summer: Newcastle sold Anthony Gordon, Bruno Guimaraes, Sandro Tonali; Villa sold six starters from Europa League final