Jamie Carragher uses Newcastle United as example when saying PSR is stifling competition in Premier League

Newcastle United are finally in a decent financial position after having to sell two young stars they'd much rather have kept last summer.

The Magpies did little incoming transfer business over the last three transfer windows heading into this summer's trading period. Indeed, last year Eddie Howe saw Yankuba Minteh and Elliot Anderson leave the club in a desperate bid to avoid sanctions for breaching Profit and Sustainability Rules (PSR).

Thanks to the club's patience, Newcastle were in a much better position to spend this summer, which was then bolstered by selling Alexander Isak to Liverpool for £125 million.

Despite this injection of cash, however, Jamie Carragher has spoken on The Overlap about clubs like Newcastle still face an uphill battle when it comes to catching the "Big Six".

Jamie Carragher says PSR is not working

Carragher has admitted that PSR is not fit for purpose and uses Newcastle and Aston Villa as prime examples of why.

“When you look at an Aston Villa or a Newcastle, we’d both agree both managers have done amazing jobs.

“Spent a bit of money, but nothing reckless. They’ve got to a certain point, and it feels like they can’t go any further.

“That will be the same if Everton get their act together, West Ham, those type of clubs that we don’t see as the ‘big six’.

“Where can you ever have that hope that you might win the Premier League or even get into the Champions League. I do think it is fair to have discussions around PSR. Feels like it’s not working right now for a lot of Premier League teams and you lose that little bit of hope.”

Newcastle could take advantage of relaxed rules around Associated Party Transactions

The relaxation of the Associated Party Transaction rules could help Newcastle significantly in terms of closing the gap between themselves and the top earners, but not many other clubs will have that luxury.

PSR was brought in to stop clubs spending themselves into bankruptcy, but it has taken on a life of its own, and it is just throttling the ability for 'smaller' clubs to be competitive.

There aren't many people left who still agree with PSR in its current form, it seems, and yet the Premier League persist with it.