Newcastle United have been fined €6m (£5.2m) by Uefa for breaching its financial sustainability regulations, while Aston Villa and Chelsea have also received penalties for overspending for the second consecutive year. The fines were announced following detailed submissions to Uefa’s club financial control body (CFCB).
Newcastle's Dual Breach and Penalty
Newcastle were found to have breached both the football earnings rule (FER) and squad cost rules (SCR). Each offence resulted in a fine of €3m, plus a suspended fine of €7m. The club accepted a three-year settlement agreement. Newcastle stated: “Newcastle United has entered into a settlement agreement with Uefa following a breach of its financial sustainability regulations in the three-year period ending June 2025. Following an overspend in relation to Uefa’s football earnings threshold, the club has worked closely and constructively with the club financial control body to swiftly resolve the matter.”
The club added: “Accordingly, the club has accepted the three-year settlement, which includes a €3m financial penalty, with a further €7m suspended pending future compliance. In addition, Uefa has determined that the club will pay a further €3m due to breaching Uefa’s 70% squad cost ratio target in calendar year 2025. Newcastle United thanks Uefa for its careful consideration and is committed to full ongoing compliance.”
Stricter Uefa Rules Compared to Premier League
Newcastle did not qualify for European competition next season after finishing 10th in the Premier League, but they reached the Champions League last 16 in the assessment period, requiring compliance with Uefa regulations. The club has never breached the Premier League’s profitability and sustainability rules, which will be replaced by a version of SCR next season. Uefa’s SCR threshold for spending on players is 70% of revenue, compared with 85% in the Premier League, while the FER does not permit asset sales to raise revenue. Newcastle’s player spending is believed to have been about 75% of revenue last season, and the sale of St James’ Park to subsidiary company PZ Newco Holdings Ltd was not approved by Uefa for accounting purposes.
Impact on Newcastle's Transfer Activity
Newcastle’s fine illustrates the limits of their spending power despite being owned by Saudi Arabia’s Public Investment Fund. The club says the Uefa punishment will not force their hand in the transfer market this summer, but they have already sold Anthony Gordon to Barcelona for £75m and are expected to lose Sandro Tonali for about £100m amid strong interest from Manchester City and Tottenham.
Aston Villa and Chelsea Fines
Aston Villa have been fined €22.5m for breaching the 70% SCR cap for a second successive year but will pay only €7.5m initially, with the remainder suspended unless further breaches occur in future years. After being fined €11m, Villa have reduced their overspending to below 80% of the SCR limit. Chelsea have succeeded in reducing the size of their breach even further and were given a €3m fine, €2m of which is suspended.
Uefa stated: “Regarding Aston Villa and Chelsea, which had already been sanctioned in the previous season, the CFCB first chamber took into consideration the improving trend in their squad cost ratio between 2024 and 2025 in line with projections submitted as part of their settlement agreement. As a result, part of the fine is conditional upon the clubs continuing to significantly decrease their squad cost ratio in 2026.”
