PSR exposed? – Damning claims on Premier League’s protection of the ‘Big Six’

If you’re anything like me, you’ve probably been tearing your hair out watching the Premier League’s Profit and Sustainability Rules (PSR) saga unfold.

And according to football finance expert Kieran Maguire, these rules are about as useful as a chocolate teapot, as he went on to explain in a damning series of posts on X last night.

Maguire said: ‘The rules were introduced to stop the ‘Big Six’ becoming a ‘Big Eight’ or ‘Big Ten’ and make it difficult for ambitious/aspirational clubs such as Villa, Newcastle & Forest from using owner money to challenge the existing elite by creating a glass ceiling.

‘Either have rules which have been stress tested to stop exploitation of related party transactions loopholes etc OR scrap them totally. What we have is neither and it’s a mess where creative accountants and lawyers are worth as much as players.’

You’ve got to wonder if anyone at the Premier League seriously believes they’re fit for purpose when you see what some clubs are getting away with.

Take Chelsea, for example. Their main operating company, Chelsea FC Holdings, miraculously posted a £128 million profit for the 2023/24 season. How did they pull off such a feat, you ask? By selling their women’s team to themselves! Yes, you read that right.

Meanwhile, their parent company, BlueCo 22 – which, by the way, owns not just the men’s and women’s teams but also French club Strasbourg – racked up a staggering £430 million loss in the same period. Why the massive discrepancy? Because you can’t include those cheeky intra-group transactions in the group accounts.

Maguire goes on to discuss this on X: ‘The Premier League PSR rules are about as fit for purpose as a chocolate teapot. Chelsea FC Holdings made a profit of £128m in 23/24 after selling the women’s team to itself.

‘The parent company BlueCo 22 (which owns the men’s team, the women’s team and…Strasbourg) made a loss of £430m in the same period as cannot include intra group transactions in the group accounts.

‘Richard Masters keeps a straight face and says Chelsea have not broken any rules…because the rules on these types of deals are full of loopholes.’

Masters declared earlier this week that Chelsea haven’t broken any rules. It’s enough to make you spit your pre-match pint out! The reality is, the rules governing these types of deals are riddled with loopholes, making a mockery of the entire system.

Honestly, if I were an Everton or Nottingham Forest fan right now, I’d be absolutely livid. Those clubs have faced points deductions and serious repercussions for breaching PSR, while others seem to be waltzing around the regulations with nary a scratch.

Our Owners, Our Ambition, Their Roadblock

But let’s bring it closer to home. We, the Mags, know this frustration all too well. We’ve got owners with unfathomable wealth – arguably the richest in world football. Yet, we’re constantly having to tread a tightrope when it comes to transfers and investment, all thanks to these very same PSR rules.

Remember the frantic end to June 2024, when we were desperately trying to balance the books? Players like Elliot Anderson and Yankuba Minteh were reportedly on the chopping block to raise vital funds and avoid a points deduction. It highlights the ridiculous situation we’re in: despite having a bottomless pit of cash behind us, we’re forced to operate within a system that punishes ambition and rewards established giants.

The whole point of PSR, ostensibly, is to prevent clubs from “buying success” and going bust. But what it’s actually doing is creating a glass ceiling for upwardly mobile clubs like ours. It’s designed to keep the so-called “big six” at the top, allowing them to benefit from years of higher revenues and commercial deals, while we, with our incredible backing, are forced to grow at a snail’s pace.

We can’t just inject the vast sums our owners possess directly into the club. Instead, we have to grow our revenue organically, through increased commercial deals, prize money (hello, Champions League!), and yes, even player sales. This means every pound spent is scrutinised, every transfer decision has to be pinpoint perfect, and the dream of quickly building a squad to challenge for major honours is a slow, painstaking grind.

It just goes to show, as long as these “chocolate teapot” rules are in place, we’re likely to see more of the same. It’s time for the Premier League to get serious about financial fair play, or admit that the system is completely broken and is actively stifling the ambition of clubs like Newcastle United. We deserve better, and our owners deserve the chance to properly invest in our beloved club!