When a club that just won a major trophy and qualified for the Champions League sells three of its best players in less than a year – including a £100m midfielder to Tottenham – it's tempting to see it as a sign of decline. But for Newcastle United, these sales are not a failure of ambition but a response to a new reality: the complex web of financial regulations that now govern English football.
At the heart of the matter are two sets of overlapping rules: the Premier League's Profit and Sustainability Rules (PSR) and its Squad Cost Ratio (SCR), plus Uefa's Financial Sustainability Regulations (FSR). These limit how much clubs can spend on wages and transfers relative to their revenue. For Newcastle, which missed out on Champions League revenue this season, selling players like Sandro Tonali – who joined Spurs for an initial £92.5m, rising to £100m – has become the only way to stay compliant and still reinvest.
“Explains why financial rules force Premier League clubs like Newcastle to sell star players, using the £100m Tonali transfer to Spurs.”
The confusion for many fans stems from the fact that clubs not in European competition face a higher SCR limit: they can spend up to 85% of revenue and net player sales on squad costs, compared to 70% for clubs in Uefa competitions. That might make missing out on Europe seem like a financial advantage. But Newcastle's senior figures warned that running up huge losses in a single window, without the revenue to support it, would be deeply damaging. Uefa's rules run over three years, so a big spending spree now could trigger a breach if Newcastle then qualifies for Europe again. The club has already reached a settlement with Uefa over a breach of its rules, pledging “full ongoing compliance”.
To create headroom, Newcastle has had to become a selling club. In 2024, the club made just £12m profit on player sales in the previous three-year cycle – a fraction of the £156m average of the Premier League's six highest-earning clubs. Now, after selling Alexander Isak to Liverpool for £125m, Anthony Gordon to Barcelona for £69.3m, and Tonali to Spurs, the shift is stark. The pressure to sell has also been driven by the need to reinvest: Newcastle is now chasing Hoffenheim winger Bazoumana Toure as a replacement for Gordon.
For UK readers, this saga is a window into how financial regulation is reshaping the football landscape. It means that success on the pitch does not automatically guarantee a club can keep its stars; instead, commercial revenue and smart trading matter more than ever. It also explains why transfer fees keep rising – clubs like Spurs can spend £237m on three players because they have strong off-field revenues, while others must sell to survive.
Q: Why do football clubs have to sell their best players if they are not in financial trouble? Clubs must comply with Premier League and Uefa rules that limit spending as a percentage of revenue. Even if a club is profitable, breaching these limits can lead to fines or points deductions. Selling players generates profit that can be reinvested without triggering a breach.
Q: How do Premier League and Uefa financial rules differ? The Premier League's Squad Cost Ratio (SCR) allows clubs outside Uefa competitions to spend up to 85% of revenue on wages and transfers, while Uefa's rules cap it at 70% for clubs in European tournaments. However, Uefa's rules look at a three-year period, so a club that spends big while out of Europe could breach if it later qualifies.
Q: What is the Profit and Sustainability Rule (PSR) and why does it force sales? PSR limits how much loss a club can make over three years (currently £105m in the Premier League). Selling players for more than their book value counts as profit, helping clubs stay under the threshold. Newcastle sold Elliot Anderson in 2024 to avoid a PSR breach.
Despite the sales, Newcastle is expected to continue strengthening. The club has agreed a deal for Toure and may make more signings once the Tonali and Gordon money is on the books. For Spurs, the arrival of Tonali – along with Mateus Fernandes (£85m from West Ham) and defender Jan Paul van Hecke – signals an aggressive rebuild under manager Roberto de Zerbi, who has long admired Tonali. The real test for both clubs will come in how they balance their books over the next three-year cycle, especially if Newcastle returns to European competition.