Sports
PSR is not perfect, but the Premier League’s shock therapy has had an effect
An air of desperation hung over a handful of Premier League clubs last summer. Accounting years were drawing to a close across the top division of English football and the pressure was on to book profits before it was too late. Player sales were a must if a profitability and sustainability rules (PSR) breach was to be avoided before June 30.
Newcastle United’s business back then was a microcosm of the chaos. They reluctantly agreed to sell Yankuba Minteh, their then teenage winger, to Brighton & Hove Albion for £30million before sanctioning the exit of Elliot Anderson, the homegrown forward, to Nottingham Forest for £35m.
“We had no other option,” their head coach Eddie Howe told reporters in October about those two departures. “We couldn’t breach PSR, couldn’t face a points deduction, and the only two deals we had on the table at that time were the two deals we did.”
Newcastle, who had spent £320million in the first two and a half years under their Saudi Arabian owners, did not want to sell either Minteh or Anderson. Nor, you suspect, did they want to pay Forest £20m for Odysseas Vlachodimos, a third-choice goalkeeper yet to feature for them in the Premier League under Howe. Anderson’s sale, though, was reliant on Forest, who had breached PSR last season and were close to the line again, getting something in return, so Newcastle had nowhere to turn.
Newcastle did not want to lose Minteh to Brighton (Mike Hewitt/Getty Images)
Others were at it, too, with Aston Villa, Everton, Chelsea and Leicester City all concocting their own mutually beneficial deals to chase compliance. Close to £200million, most of it “pure profit”, was collectively banked by those six clubs in June’s final weeks and Tuesday brought confirmation that the trading had been worth it.
A 14-day assessment period of 2023-24 accounts and PSR calculations had not raised red flags within the Premier League and, unlike last January, when Everton and Forest were both charged, there was no cause for disciplinary action to be triggered.
Leicester’s case remains more complex than others, with the Premier League still believing they are on the hook for at least one charge amid the legal challenges back and forth, but 2024, the year of the asterisk, has left its mark.
The three PSR charges heard last season — two for Everton and one for Forest — resulted in a combined 12 points being deducted, the kind of shock therapy that was difficult to ignore.
It may never be known just how close Newcastle and others came to going beyond their spending threshold last season. Clubs’ 2023-24 accounts, which are due to be filed by the end of March, will give us clues, but the absence of transparency in the PSR process makes it difficult to offer fully informed analysis.
Clubs instead have to be judged by their actions and those madcap days of late June revealed anxieties ultimately born out of the penalties handed to Everton and Forest a few months earlier. That jolted the whole of the Premier League, heightening motivation to find quick profits in the transfer market once the season had concluded.
Howe admitted as much — Newcastle had no wish to sell Minteh or Anderson. Certainly not both. But, as Howe, the front-facing figure in that organisation, accepts, there was “no other option” but to accept £65million in transfer fees for the duo if a PSR breach was to be avoided.
Were Chelsea as close to the edge? That is unclear but their compliance owed as much to the sale of two hotels which are part of the wider site at their Stamford Bridge stadium to other companies owned by BlueCo, Chelsea’s parent company, as it did the late sale of defender Ian Maatsen to Villa for £37.5million. Others did not have the luxury of property deals enhancing the numbers.
Maatsen’s transfer to Villa helped Chelsea comply with PSR, but not as much as the sale of two hotels (Matt McNulty/Getty Images)
PSR continues to have its vocal opponents, such as Villa co-owner Nassef Sawiris, who told the Financial Times in June that the regulations were inhibitive and “not good for football”, but last season served the warning that overspending would still carry a sporting cost. Everton and Forest became the bad boys nobody wanted to emulate.
That was obvious with the sudden business done in June, and the wariness has been extended into this season.
Manchester United, traditionally one of English football’s strongest financial forces, have made it clear they have little scope to strengthen new head coach Ruben Amorim’s hand after their heavy losses of recent times. Newcastle also remain bound by financial constraints, with only about £60million spent this season. Villa’s net spend for the season, meanwhile, stood at about £26million going into the current winter transfer window.
Those three clubs could have spent more but learnt last season that punishments would then be unavoidable down the road.
It would not be fitting to congratulate the Premier League on strong governance when 115 charges of financial wrongdoing still hang over four-in-a-row title winners Manchester City and Leicester’s case remains unresolved, but last season served notice that rules had to be adhered to. Points deductions would be in the post to any club not complying.
“The Premier League submits that the only proper sanction is a sporting sanction in the form of a deduction of points,” it argued in Everton’s first PSR hearing, which brought an initial 10-point penalty, later cut to six on appeal. That exact sentence was repeated when Forest faced an independent commission.
PSR has its inconsistencies and imperfections, and might well lead to more scrambled, incoherent transfer business before financial years are out at the end of every June.
But the past 12 months — and no fresh charges this week — have made it clear to clubs that it is a sanction to be taken seriously.
(Top photos: Getty Images)
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The PGA Tour has announced that it will not be hosting an event in Hawaii during the 2027 season, ending a 56-year run of holding a tournament in The Aloha State. The change comes as the Tour and CEO Brian Rolapp have consistently teased a revamped schedule beginning next year.
The Tour was forced to cancel The Sentry at the start of the 2026 campaign due to the dying grass on the Plantation Course at Kapalua amid a local dispute with the company responsible for delivering water to the area.
An aerial view of the golf course from over the ocean prior to The Sentry at The Plantation Course at Kapalua on December 31, 2023 in Kapalua, Maui, Hawaii. (Photo by Ben Jared/PGA TOUR) (Ben Jared/PGA TOUR)
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With The Sentry being canceled, the Sony Open at Waialae Country on Oahu served as the Tour’s season opener in ‘26, which was won by Chris Gotterup. The event was in the final year of its sponsorship, although the Tour has shared that it is working toward making the event the opening event on the PGA Tour Champions circuit.
Chris Gotterup of the United States celebrates with the trophy on the 18th green after his winning round of the Sony Open in Hawaii 2026 at Waialae Country Club on January 18, 2026 in Honolulu, Hawaii. (Photo by Cliff Hawkins/Getty Images) (Cliff Hawkins/Getty Images)
The Tour’s removal of The Sentry and the Sony Open wipes out what has now turned into a traditional two-week stretch on the island to begin a new season.
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The PGA Tour did not share further details about the 2027 schedule upon its announcement about leaving Hawaii, but with Sentry reportedly being an event title-sponsor through 2035, it will need to find a new landing spot on the calendar. The logical stop would be Torrey Pines in San Diego, which checks the West Coast and great weather boxes, but the venue is also looking for a new sponsor, as its deal with Farmers Insurance ended in 2026.
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View of the 18th hole is seen during the final round of The Sentry at The Plantation Course at Kapalua on January 5, 2025 in Kapalua, Maui, Hawaii. (Photo by Ben Jared/PGA TOUR via Getty Images) (Ben Jared/PGA TOUR via Getty Images)
The Tour’s decision not to begin next season in Hawaii makes sense, as there are plenty of venues in the lower 48 states that are much easier to operate from, but the departure will have a tremendous financial impact on the state.
The Honolulu Star-Advertiser reports that The Sentry is estimated to have a $50 million annual impact on the community, while the Sony Open directly generates an estimated $100 million in revenue per year, plus another $1 million per year to Friends of Hawaii charities.
Martin Dugard is a prolific author and writer. He’s also an assistant cross-country coach at Santa Margarita after being head coach at JSerra for 15 years.
His newest book is “The Long Run,” which discusses the 1970s running boom and is a narrative history of four who sparked the marathon boom: Steve Prefontaine, Frank Shorter, Joan Benoit Samuelson and Grete Waitz.
He’s going to have a book signing on Saturday at 1 p.m. at Barnes & Noble, 26751 Aliso Creek Rd., Aliso Viejo.
Don’t be surprised if he tries to run from Rancho Santa Margarita to his book signing.
This is a daily look at the positive happenings in high school sports. To submit any news, please email eric.sondheimer@latimes.com.
For years, Stephen A. Smith’s many football blunders have been easy enough to explain away.
He’s not an NFL guy (remember when he said the three key players for a game were three guys who weren’t playing in the game?)
Stephen A. Smith falsely claimed the Warriors haven’t made the playoffs since 2022, but Golden State reached the second round in both 2023 and 2025. (Jerome Miron/Imagn Images)
He’s definitely not a college football guy (remember when he called Jalen Milroe Jalen “Milroy” multiple times and then read the wrong stat line after a College Football Playoff game?).
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ESPN forces him into those conversations because First Take has to talk football, and Smith knows that football is the most popular sport in the country and he needs to be seen as an authority (even though he isn’t).
But Monday’s latest mistake is a lot tougher to excuse, because this time Smith wasn’t talking about the NFL or college football. He was talking about the Golden State Warriors, one of the defining NBA dynasties of the last decade.
In other words, he was talking about the sport and the league that’s supposed to be his bread and butter.
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While discussing whether Steve Kerr has coached his last game with Golden State, Smith confidently stated the Warriors “haven’t been back to the playoffs since that championship in 2022.”
Golden State Warriors head coach Steve Kerr looks on during a game against the Sacramento Kings. (Robert Edwards/Imagn Images)
That’s not even close to true. Not only did Golden State make the playoffs last season, but they also reached the postseason in 2023. Last year, the Warriors made the playoffs, beat the Rockets in seven games and advanced to the second round before losing to the Timberwolves. In 2023, they beat the Sacramento Kings in the first round and before losing to the Lakers in the Western Conference semifinals.
So, Smith wouldn’t even have been right if he said they haven’t won a playoff series since 2022. But he didn’t say that. He said they didn’t make the playoffs in any of the past four years, except they did it twice.
Yikes.
This is not an obscure piece of NBA trivia that Smith could be easily forgiven for not knowing. Perhaps he was too busy playing solitaire on his phone and just missed two of the past three NBA postseasons. That’s a tough look for the guy who fancies himself as the No. 1 NBA analyst in the country.
And it’s a terrible look for ESPN, as they keep selling Smith as one of the faces of their NBA coverage.
Stephen A. Smith made a brutal gaffe while talking Warriors playoff history
If Smith made this kind of mistake while talking about the NFL, nobody would be shocked. At this point, sports fans practically expect him to butcher football analysis. It’s almost endearing that a guy with the ego of Smith can be so consistently wrong while also delivering every “fact” with the utmost confidence. It’s part of the Stephen A. experience.
But this one hits differently because the NBA is where he’s supposed to at least know the basics. This is where Smith prides himself as being an authority figure.
Stephen A. Smith incorrectly stated the Golden State Warriors haven’t made the playoffs since their 2022 championship, despite the team reaching the postseason twice since then. (Candice Ward/Imagn Images)
And yet he couldn’t keep the recent playoff history of the Warriors straight. The team whose head coach is in the news every other week. The team that has won four championships since 2014. Arguably one of the most important franchises in the NBA over the past 15 years.
Yes, Golden State missed the playoffs in 2024 after getting bounced in the Play-In Tournament (although they won 46 games that season). And yes, it fell short again this season. But that’s a lot different from acting like Steve Kerr has spent four years wandering the basketball wilderness since winning that 2022 title.
He hasn’t. In fact, the team is 175-153 in the past four regular seasons.
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The Warriors made the second round in 2023. They made the second round again in 2025.
Before burying Steve Kerr on national television, maybe Stephen A. Smith could take 10 seconds to confirm whether the Warriors were actually, you know, in the playoffs.
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