Newcastle United are suddenly in a very healthy PSR position, but that is only after receiving a British record transfer fee.
Alexander Isak joining Liverpool for £125million will put the Magpies in an incredibly strong financial position, having spent the past year or two being held down by PSR.
The Premier League’s financial rules resulted in Newcastle selling Elliot Anderson in 2024, while it also saw Eddie Howe fail to invest across multiple transfer windows.
That changed in 2025, with Newcastle United able to spend some money. Their careful strategy in the past, combined with impressive sales of Miguel Almiron and Lloyd Kelly, allowed the Magpies to splash out.
In total, Newcastle bought six new players to the tune of more than £250million. But that came after three transfer windows without making a senior signing that improved Howe’s starting XI.
All the while, Aston Villa are struggling financially. That is why Jacob Ramsey joined Newcastle, with the 24-year-old swapping Villa Park for St James’ Park.
Photo by Robbie Jay Barratt – AMA/Getty ImagesJamie Carragher does not think Newcastle United can go any further under PSR
It has been a challenging period for two clubs who have proven they are capable of upsetting the ‘big six’, only for PSR problems to shackle their development.
In the eyes of Jamie Carragher on the Overlap YouTube channel, it feels like clubs like Newcastle and Villa ‘can’t go any further’ under current profit and sustainability rules.
“When you look at an Aston Villa or a Newcastle, we’d both agree both managers have done amazing jobs,” he said.
“Spent a bit of money, but nothing reckless. They’ve got to a certain point, and it feels like they can’t go any further.
“That will be the same if Everton get their act together, West Ham, those type of clubs that we don’t see as the ‘big six’.
“Where can you ever have that hope that you might win the Premier League or even get into the Champions League. I do think it is fair to have discussions around PSR. Feels like it’s not working right now for a lot of Premier League teams and you lose that little bit of hope.”
Eddie Howe recently criticised PSR
Newcastle United manager Eddie Howe has been very vocal about his concerns regarding PSR. After all, it is the reason he is no longer working with Elliot Anderson.
That exit has become even more painful as of late, with Anderson shining on his England debut.
PSR has forced Newcastle to sell players they wanted to keep, and stopped them from signing players they wanted to bring in.
It has been a problem for Howe, who spoke out about PSR in August.
“We’re controlled by PSR,” he said.
“That’s still limiting what we can do and that’s the reality.
“I’ve said many times, we’re not the highest payers in the league. We’re far from it and that is sometimes reflected in the choices players make.
“I don’t think there’s many players who have come here and haven’t benefitted from the experience Newcastle can give you.
“Playing in front of these supporters, that’s an absolute privilege and an honour that’s never lost on me. It’s a special place to be. Some players have a different choice. Finances play a part in that.”