Changes to Premier League Profitability & Sustainability Rules are being discussed by Newcastle United and their rivals.

Premier League clubs are set to discuss a new Financial Fair Play proposal - and a leading football finance expert believes it could benefit Newcastle United.

The Magpies and their 19 top-flight rivals will debate on Monday whether to introduce a system known as “anchoring”, which would mean no team in the division could spend more on ‘squad costs’ - made up of the first team wage bill, amortised transfer fees and agent payments - than a multiple of the club that earned the lowest from the centralised broadcast and commercial deals.

Clubs have agreed to ditch current Premier League Profitability and Sustainability Rules (PSR) following points deductions for both Everton and Nottingham Forest, while several clubs including Newcastle didn’t spend a penny during the January in fear of breaching PSR.

Financial regulations are set to move in line with UEFA. Those involved in Europe are permitted to spend 70% of their total revenue on wages, transfer fees and agent fees, while those not in Europe will be able to spend 85%. However, it’s understood the Premier League want their financial fair play regime to be “multi-layered” and that’s why anchoring has come into the conversation.

And it is a motion that could benefit ambitious clubs such as Newcastle, Aston Villa, Nottingham Forest and West Ham United according to finance expert Kieran Maguire.

“I don’t think clubs such as Newcastle will be hit by this,” Maguire told iNews. “To a certain extent it would be to their advantage because if the upper limit clubs can spend is anchored to the smallest clubs it means that not only can the existing elite – Liverpool and Manchester City and so on – spend 4.5 times Burnley’s budget, it allows aspiring clubs like Newcastle equal that level of payment.

“And therefore you can see the benefits to them. The upper ceiling is much more closely aligned. One of the criticisms levelled at the soft wage cap at present is because it’s linked to revenue if you have an existing revenue advantage over another club it’s reflected in the wages you can pay.

“So take a look at Manchester City – their revenue is £700m, 70% of that is £490m, which is your wage and amortisation bill. Newcastle’s revenue is £250m so they have £175m as their wage and amortisation bill. So in the squad control rules which UEFA have introduced and the Premier League looks set to introduce, the current gaps are maintained. Under the anchoring rules they disappear. A club at the bottom – Forest, Villa, Newcastle, West Ham – if the owners want to go for it they can.”

It’s claimed Manchester United and Manchester City are “vehemently opposed” to the idea, believing it would put English clubs at a disadvantage in Europe and weaken its financial power in the transfer market. The proposal would need 14 votes out of 20 in favour in order to pass.