Newcastle United reportedly on track to make profit for first time in five years - Will it help with PSR?

The Premier League's Profit and Sustainability rules have killed the excitement of transfer windows, especially for clubs like Newcastle United whose owners' wealth would allow them to purchase any player in the world without even noticing the money was gone.

While we agree that unbridled spending by the few clubs who could afford it would ruin the game, strangling every club with the same rope seems a bit over the top and, as has been proven, removes any sense of competition when it comes to smaller clubs trying to break into the top six.

Newcastle are close to breaking through that ceiling but after spending big when the PIF took over, the club has been unable to spend since after hitting the upper limits of the PSR allowance.

However, the club has grown the commercial side of the business at an impressive rate and iNews, with help from Off The Pitch, have reported that the Magpies are on track to post their first profit in five years.

PSR shouldn't be as big of an issue for Newcastle in the summer

It won't affect the January transfer window, but with the new PSR reporting year coming into effect in the summer, the club's profits will post alongside a £73.4m loss dropping out of the calculations, Newcastle will be in a much healthier position to spend in the summer.

If Newcastle can also recoup some funds by selling players this month, it will all add up to a much more exciting summer transfer window after the disappointment of 2024. The new PSR rules come into effect this summer, so Newcastle could benefit from that also.

However, it's unlikely to mean that we'll be going out and acquiring ready-made superstars with the new direction under Paul Mitchell fully focused on finding young, burgeoning talent and creating stars of our own.

A new stadium would go a long way to improving Newcastle's revenue streams

As iNews pointed out, when the financial information is revealed later this month we will get a better look for ourselves just how close we were to breaching PSR in the summer before Elliot Anderson and Yankuba Minteh were moved on.

It will also likely reinforce the need for a new stadium which many fans are starting to believe is the direction the club are pushing for as the increased matchday revenue would be massive for the club's bottom line.

We've still got a long way to go to close the gap on the Premier League big hitters when it comes to revenue, but it is closing.