How financial fair play regulations shield the Premier League’s Big Six

If you’re a football fan, you’ve probably heard of financial fair play or seen the consequences suffered by Everton, Leicester, Chelsea and Nottingham Forest.

These rules aim to stop clubs with deep pockets from overspending to sign top players, as was arguably the case with Roman Abramovich at Chelsea.

The Financial Fair Play (FFP) regulations, now called the Profitability and Sustainability Rules (PSR), were introduced to stop excessive spending, promote fairness and prevent dominance by a single team, in order to create a more competitive league.

Protecting the Big Six

While the PSR has good intentions, it may unintentionally protect the “Big Six” Premier League clubs: Arsenal, Chelsea, Liverpool, Tottenham Hotspur, Manchester City and Manchester United.

These clubs have the biggest fanbases, largest stadiums and therefore the highest revenues, which means they can spend more without breaching PSR thresholds.

This puts teams like Aston Villa and Newcastle United, who are pushing for Champions League and European football, at a disadvantage. Despite having wealthy owners, they can’t invest in expensive players or stadium improvements, which would increase ticket sales and revenue, without risking penalties.

It can also force clubs to sell players to stay compliant. This year, Newcastle and Villa may have to offload players like Bruno Guimarães, Alexander Isak, Ollie Watkins and Emiliano Martinez to comply with PSR. Replacing big players is tough with limited funds – unless your manager has an eye for cheaper talent.

Figures and financials

Newcastle has spent over £400m since its takeover, posting a net loss of £73.4m for the 22/23 season. Still, the club’s turnover rose 39% to £250.3m and it has the added benefit of being in the Champions League for the 25/26 season, which will inevitably boost income through more games and bonuses.

Villa’s revenue rose 27% to £275.7m, with a net loss of £85.4m this financial year. Reaching the Champions League quarter-final generated around £90m, while selling homegrown players and John Duran – plus the £55m sale of the women’s team – helped keep the club within the £105m PSR threshold over three years.

Compare that to league winners Liverpool, whose overall club revenue hit £614m in the 23/24 season, with a loss of just £57m. Tottenham also reported a net profit of £518m and an £87m loss at the end of the 2024 financial year. This is double what Newcastle and Villa are making, giving clubs outside the Big Six less room to invest and grow.

This highlights the importance of reaching the Champions League and playing in Europe consistently to bring in more revenue. Champions League teams earn £15.7 million just for qualifying, plus £1.8m per win and £590,000 per draw in the group stages.

After these initial stages, each team is awarded a sum based on where they finished in the league, earning £233,000 for each place. Liverpool earned £8.4m, with Arsenal getting £7.9m, on top off the £1.7m awarded to each team that qualified to the round of 16.

Money continues to be awarded for each round of the knockout phases: £9.2m for the round of 16, rising to £21.5m for the winner. This is also applies to the Europa League, although the prize money is lower, with the winner receiving £5m.

Arsenal earned £70m in prize money this year, compared to Villa’s £45.18m. This gap shows how regular European tournaments boost revenue and help clubs stay within PSR limits.

Squads

Balancing success in European tournaments with domestic performance is tough – especially for teams who don’t have the squad depth to rotate and rest players.

Even Big Six clubs can struggle. Tottenham and Man United reached the Europa League final this season but placed 17^th and 15^th in the league respectively.

Villa, meanwhile, played in the Champions League but still managed to place 6^th, showing it’s possible to do both with a limited squad – but clubs with higher revenue will ultimately have stronger squads and benches.

A club’s ability to grow its squad depends on revenue and PSR rules limit what teams like Villa and Newcastle can spend. So, while the PSR aims to level the playing field, it may actually reinforce the dominance of the Big Six.