As the 2025/26 Premier League season approaches, the conversation around Profitability and Sustainability Rules (PSR) has become as prominent as discussions about title contenders or relegation battles.
The regulations, which limit permissible losses to £105 million over a rolling three-year period, are intended to promote financial stability.
For clubs that have spent time outside the top flight during this window, the cap is lower, at £39 million.
With proposed new spending regulations delayed until 2026/27, the existing framework remains in place for at least one more campaign.
That means clubs must navigate the current transfer market with strict financial discipline or risk the sort of sanctions that have already cost sides valuable points in recent seasons.
Here are the clubs most at risk of breaching PSR financial regulations:
Manchester United
Manchester United have been the subject of intense speculation regarding their PSR position, with some early reports suggesting the club faced a significant breach risk.
In reality, the situation is more controlled.
Through the use of their Red Football Limited subsidiary, careful structuring of transfer fees, targeted player sales such as Marcus Rashford's loan to Barcelona, and internal cost reductions, the club is believed to have built a compliance buffer of more than £140 million.
This provides short-term stability, though it does not grant the freedom to spend without consequence.
A sustained focus on wage management and commercial income growth will be essential to maintain this position beyond the current cycle, so the Red Devils are still very much walking a tightrope - especially with an outlay of over £200 million on the signings of Matheus Cunha, Bryan Mbeumo and Benjamin Sesko this summer.
Aston Villa
Aston Villa's position is considerably more precarious.
Over the last two financial years, the club recorded pre-tax losses of £206.2 million.
That leaves an estimated £15 million in allowable losses before breaching the PSR threshold.
UEFA has already confirmed Villa breached the squad cost ratio last season, spending approximately £252 million on wages and transfers against a revenue figure of £257.7 million - well above the 80% limit.
While Champions League qualification this term offers a financial boost, any drop in performance or early European exit would magnify their vulnerability.
The club's recent appointment of Francesco Calvo to lead commercial strategy is aimed at improving revenues, but the immediate challenge will be controlling expenditure without undermining squad strength.
Newcastle United
Newcastle's Saudi Arabian ownership group has the resources to invest heavily, but PSR restrictions have tempered ambitions.
Planned infrastructure upgrades have been delayed, and several high-profile transfer pursuits have stalled.
While the club are not currently on the brink of a breach, their room to manoeuvre is limited, particularly if revenue growth does not keep pace with player costs.
With rivals benefiting from stronger commercial portfolios, Newcastle's ability to compete financially is more constrained than many anticipated following the Saudi Public Investment Fund takeover.
Everton and Nottingham Forest
Everton and Nottingham Forest have both already faced points deductions for PSR breaches, with Everton losing eight points and Forest four during the 2023/24 campaign.
Both clubs have since tightened spending and have so far avoided further sanctions, but remain under close regulatory scrutiny.
In practical terms, their transfer strategies must prioritise affordability over ambition, and any downturn in revenue - particularly from broadcast or matchday sources - could quickly put them back into breach territory.
Promoted clubs
For newly promoted sides such as Leeds, Burnley, and Sunderland, the PSR limit is significantly tighter.
The £39 million loss cap over three seasons leaves little space for error, especially given the rising cost of competing in the Premier League.
While early transfer activity for these clubs has been relatively modest, the financial challenge will intensify if survival requires substantial spending in January.