Lawyer who helped push through Newcastle United takeover set for another battle with Premier League

Those of us who followed the nightmareish years of hope followed by disappointment followed by hope that finally brought about the 2021 Saudi-backed takeover will no doubt remember the name of Nick De Marco.

If you don't, then he was the legal eagle who swooped in to help Newcastle United get their takeover the green light after the Premier League kept throwing up roadblocks.

Since then he's worked with several other clubs to fight cases against the Premier League, most recently winning Leicester City's case over PSR breaches, and is now lacing up his brogues on behalf of the Professional Footballer's Association (PFA) over the latest changes to Profit and Sustainability Rules (PSR).

If he's successful again then the rules around club's spending could be about to change once more.

The PFA are now saying the anchoring system is in breach of competition law

Earlier this year the Premier League met with the owners of the 20 clubs and agreed to trial a new 'anchoring' system alongside PSR. This would essentially limit every club to only being able to spend five times the commercial and broadcast revenue of the lowest earning club in the league.

When we looked at it at the time the calculations suggested that it would actually open the door for Newcastle to spent considerably more than the current PSR restrictions.

However, the PFA have likened it to having a 'salary cap' which is illegal under European Competition Law and they have employed Nick De Marco to fight their case.

PSR is set for some big changes ahead of next season

The Chronicle has reported on the story and explained what the changes to PSR are set to be next season:

"In terms of the upcoming legal battle, the result will determine how the Premier League's spending rules could look in the years to come. At present, the top flight's profit and sustainability rules [PSR] will be axed in 2025/26 and replaced by regulations that would see Premier League teams only able to spend a maximum of 85 per cent of their revenue on their 'squad costs'.

"The 'anchoring' system would run alongside the new rules and will mean clubs are only able to spend a maximum of the multiple of what the bottom club earns in TV revenue. For example, Southampton earned £103.6m in the 2022/23, the last season the data is available, and a cap of five times that income would mean clubs could spend a maximum of £518m."

We're not sure how both rules work together, but that's not for us to worry about, especially if Di Marco and the PFA win their case and Anchoring is scrapped. Perhaps you can spend 85% of your revenue on squad costs as long as that figure is below £518m as per that example.

Bottom line is ... we have no idea how much Newcastle will be able to spend in the summer.