February 21, 2024

Everton and Newcastle examples raised in £218m PSR claim

Finance expert raises Everton & Newcastle examples as new £218m PSR claim made

Kieran Maguire raises Everton and Newcastle United examples in £218m claim as clubs await PSR verdict

Kieran Maguire raised the examples of Everton, Newcastle United and Aston Villa as the clubs hardest hit by the Premier League’s Profitability and Sustainability Rules.

Everton have already been hit with a 10-point deduction this season, while there has been talk of the club potentially facing further action after submitting their most recent accounts.

The Toffees were penalised for recording a loss of £124.5million over a three-year period, which is above the £105m threshold.

However, football finance expert Maguire believes that second figure should be considerably higher to bring it in line with inflation in the sport.

Writing on his personal Twitter account [13 January], Maguire said: “If Premier League PSR limits had risen in line with football inflation since 2013 (here I’m using wages but revenues are similar) clubs could lose up to £218 million over 3 years.

“Non adjustment of limits is similar to fiscal drag when government doesn’t raise tax thresholds.

“The non increase of the PSR limits has hit clubs with new owners since 2013 hardest, such as Newcastle, Everton and Villa.”

Farcical

Just like prices of everyday items continue to rise – from petrol to a pint of milk – prices in football have gone through to roof in recent times.

Whereas previously you could buy a world-class player for £30m, now that gets you a rather untested player in the shape of Beto.

That is not a slight on Beto in any way, but it is just the plain facts. As prices of players and players’ wages rise, so should these thresholds.

As Maguire points out, Everton, Newcastle and Villa – among others – have been hardest hit as a result of new owners coming on board over the past decade.

 

This is not even touching on the farcical nature of the independent commission review last year, which Everton fans will continue to protest against.

Fingers crossed these latest accounts pass the various checks, or else we could be in for yet more months of fallout and financial talk.

 

 

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