Richard Masters admits Premier League are still 'looking at alternatives' to Profit and Sustainability Rules amid 28% revenue increase for NUFC

It's certainly no secret that we at NUFC Feed have many issues with Profit and Sustainability Rules (PSR) as they are right now as it's the rule that is directly preventing Newcastle United from catching up to the 'big six' in the Premier League.

Newcastle have the wealthiest backers in the game and could spend money like it's going out of fashion without endangering the club's future, but PSR, formerly Financial Fair Play (FFP) was brought in to prevent clubs from spending above their means, is now preventing clubs from spending ... well, pretty much anything.

As we say, it would take some catastrophic mismanagement to bankrupt Newcastle with the PIF backing them, and while we understand the fears around taking the leash off and letting Newcastle run wild in the transfer market, it's very clear that the current rules are far too restrictive. In the wake of Newcastle posting huge increases in revenue, we're still not actually sure how much there will be to spend in the summer thanks to PSR.

We, as Newcastle fans, aren't asking for the shackles to be removed completely. We do agree there should be something in place to stop clubs from doing what Manchester City and Chelsea did after their takeovers, but there has to be an allowance for clubs whose financial positions have dramatically improved post takeover to at least catch up. As things stand, PSR just keeps those clubs that managed to spend freely locked in with the clubs that were already way ahead of the chasing pack.

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PSR could be set for a big change as Richard Masters discusses need for alternatives

While the Premier League's Richard Masters refuses to acknowledge that the current rules are a load of faeces, he has now admitted that things need to change while speaking at the Business of Football event (via The Shields Gazette).

“We have spent probably the last 18 months looking at squad-cost ratio as a concept to deal with two concerns with the current system. It's not that the current system doesn't work or is bad but, historically, the Premier League has followed UEFA.

“So whether you have clubs in Europe or the Premier League, they are following a common system. If you have got a system which regulates revenue and a system which regulates profits, they're different so that's an aspiration we think needs looking at.

“Secondly, the PSR system at the moment is a ‘look-back system’ over three years and the squad-cost ratio system that we have designed and is still in shadow as it were - we're monitoring clubs on that basis - delivers in-season essentially. It's an in-season test.

“So rather than over-spending over three years and then sanctions being in place the following year, it would happen in-season. Those are the two things the clubs, in particular, wanted to see addressed.”

Richard Masters is looking at squad-cost rules to replace PSR

It definitely makes more sense for the rules to look more at current means rather than looking back three years, especially for clubs which have been taken over in that period. When you also consider that the £105m over three years loss limit has been in place for over 10 years without being inflated, newly rich clubs don't stand a chance.

Squad cost rules will still be restrictive for clubs like Newcastle, but should be less so than the current PSR system.

However, Masters' words ring hollow right now given that they very recently opted to keep the current system in place next season. Another year at least for Newcastle United to tread on financial egg shells. Wonderful.