The Premier League’s Profit and Sustainability Rules (PSR) are supposed to stop clubs from overspending. Each club can lose only £105 million over three years (with some exceptions for stadiums, academies, and women’s football). But this season has shown how smart accounting and creative deals let some of the biggest clubs avoid punishment.

This article looks at how clubs like Chelsea, Leicester, Liverpool, Manchester United, Manchester City, Arsenal, Newcastle, and Tottenham are handling PSR, and the tricks they can use to stay safe.

Chelsea and the hotel loophole

Chelsea found the most talked-about loophole in Premier League PSR. The club sold two hotels and even its women’s team to companies owned by its parent group, BlueCo. On paper, this counted as income and reduced their losses.

Without these sales, Chelsea would have been in serious trouble. Critics, like former Crystal Palace owner Simon Jordan, called this a “mockery” of the rules. Still, because the Premier League failed to get enough votes to close this loophole in June 2025, Chelsea’s method is still legal.

Leicester and the relegation trick

Leicester City showed another side of PSR. They were charged with breaking the rules for the 2022–23 period, but they argued that by June 30 (their accounting cut-off), they were no longer a Premier League club, so the league had no authority to punish them.

An independent panel agreed, and Leicester escaped sanctions. The case is still in arbitration, but for now, it shows how timing and jurisdiction can help clubs avoid penalties.

Big six compliance: Liverpool, Arsenal, United, City, Newcastle, Spurs

Unlike Chelsea or Leicester, the other big clubs managed to stay within PSR rules without using such dramatic tricks.

• Liverpool lost £57 million in 2023–24, their worst ever, but strong revenues and profits from player sales kept them safe.
• Arsenal stayed stable thanks to Champions League money and smart early sales.
• Manchester United used their Red Football Limited structure to report smaller losses than their parent company, keeping them inside the limit.
• Manchester City had the biggest cushion, with past profits giving them room to spend. Their 115 FFP charges are separate from PSR.
• Newcastle United faced pressure but fixed their books by selling players like Minteh and Anderson just before the deadline.
• Tottenham Hotspur had one of the healthiest financial positions, with room to spend up to £227 million in losses.

How clubs can bend the PSR rules

Even when not breaking rules, clubs use methods that stretch the spirit of PSR.

Selling homegrown players

Academy graduates cost nothing in transfer fees, so selling them counts as pure profit. This is why clubs often sell academy players, sometimes at inflated prices in swap deals.

Long contracts and amortisation

By giving players very long contracts (seven or eight years), clubs spread transfer fees across many seasons, lowering yearly costs. Chelsea did this heavily in 2022–23.

Related-party sponsorships

Owners use their own companies to sign sponsorship deals at high values. Manchester City’s Abu Dhabi deals and Newcastle’s Saudi-related sponsors are examples.

Intra-group sales

Like Chelsea’s hotels, clubs can move assets to sister companies to create one-time profits.

Timing tricks

Choosing accounting dates, relegation or promotion timing, and moving costs across financial years can all help avoid sanctions.

Spending on exempt areas

Money spent on stadiums, academies, or women’s football is exempt from PSR. Clubs often use this to improve infrastructure while indirectly boosting the first team.

Why it matters for Indian fans

For Indian football fans following the Premier League, this is more than just accounting. It shows how clubs find loopholes in PSR rules to stay competitive while avoiding points deductions. Understanding these tricks helps explain why some teams can keep spending big while others, like Everton and Nottingham Forest, get punished quickly.

Conclusion

The Premier League’s PSR rules look strict, but the reality is full of loopholes, timing games, and creative accounting. Chelsea’s hotel sales, Leicester’s relegation argument, and the financial manoeuvres of the big six clubs show that staying inside PSR is less about cutting costs and more about playing the numbers game.

As Indian fans, knowing these details gives us a clearer picture of how football finance works, and why some clubs keep spending without facing sanctions.