Premier League to introduce two new spending changes that will affect Newcastle United


Two new forms of spending caps will be trialled in the Premier League from next season after Newcastle United and their 19 top flight counterparts voted on the matter at the league's Annual General Meeting [AGM] on Thursday.

A 'Squad Cost Rule' system will be introduced, meaning clubs cannot spend more than 85 per cent of their revenue and net profit or loss on player sales. Secondly, a "Top to Bottom Anchoring" rule will limit spending to a multiple of the lowest combined prize money and cash from TV rights forecast to be earned by a team.

These two new regulations will be brought in alongside the current profit and sustainability rules [PSR] as the Premier League attempt to clamp down on ensuring clubs are spending within their means. The decision to keep PSR in place comes after both Nottingham Forest and Everton were docked points for failing to abide by the rules in the 2023/24 season.

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Aston Villa tabled a motion at this week's vote to raise maximum allowable losses over three years from £105m to £135m - but this proposal was rejected. Crystal Palace were also seeking a change that would have granted Premier League clubs participating in Europe the chance to claim the difference in coefficient funding between themselves and the top clubs in the division as allowable losses.

14 of 20 Premier League clubs needed to agree to pass each motion but both failed to garner enough support on Thursday.

As for Newcastle, the Magpies know they must still offload some first-team stars to ensure they do not fall short of PSR regulations after years of heavy spending in the transfer market. Eddie Howe is determined to keep the superstar names, notably Bruno Guimaraes and Alexander Isak, at the club but will be faced with tough decisions over other key stars as the summer window gets going.

Newcastle are also hoping to spend, however. A new goalkeeper and a new right winger remain high on the agenda, while Howe has made it his priority to secure at least one new centre-back before next season.