Huge blow for Newcastle's summer transfer business as 'luxury tax' deemed a non-starter for the Premier League

Newcastle United fans had their hopes up that a change in Profit and Sustainability rules that does away with points deductions in favour of fines was being considered.

This would have meant that clubs with owners with insane wealth which dwarfs that of what the club brings in could pump money into the club and overspend for fun without the risk of points deductions.

Instead, the club would be hit with a hefty fine which would increase depending on the amount of overspending, and that money would then be redistributed to clubs who played within the rules. Everyone's a winner.

Except now, it seems like this won't make it beyond the idea stage.

Another summer of spending struggle for Newcastle awaits

Sky Sports News have now said that the 'luxury tax' idea was seen by the majority of clubs and the Premier League itself as a non-starter.

The report states that points deductions are here to stay as they are still seen as the best form of punishment for clubs who breach the rules.

Basically, it means that the Premier League are set on adopting the UEFA model which sees clubs involved in European competition allowed to spend 70% of their revenue on players. Or at least 70% will the figure by 2025/26 as it ramps down from 90% which was in place this season.

The Premier League we can't see what they're doing

The Premier League will allow clubs not involved in UEFA competitions to use over 70% to try and make the league more competetive. Although, in truth, 70% of what clubs in Europe earn is still going to be more than 85% of those who aren't in Europe.

Once again, the Premier League are tying to frame things in a way that looks good for the smaller clubs, but really they are still making sure that big golden fence stays up around their favoured clubs.

There is literally no way to make spending limits fair, so just scrap them and let's have some fun with it.