Christian Purslow left Aston Villa in 2023(Image: Getty Images)

Christian Purslow admits clubs like Aston Villa and Newcastle United still face a huge challenge to compete at the top of the Premier League, despite changes to financial rules.

From next season, Squad Cost Rules (SCR) will replace the Profit and Sustainability Rules (PSR). The new regulations will limit on-pitch spending - covering wages, transfer amortisation, and agent fees - to 85% of a club’s revenue.

However, clubs competing in European competitions will face an even stricter cap of 70 per cent, in line with UEFA rules.

“The first thing to say is that SCR starts in the summer, and SCR is a cousin of PSR - Squad Cost Rules and Profit and Sustainability Rules. It still takes revenue as the starting point and limits spending as a proportion of your revenue,” Purslow explained on The Football Boardroom.

“There are features of new SCR rules which I like, but fundamentally they remain revenue-based. That means that the rules give a huge sporting advantage to those four, five, six clubs in the Premier League who have twice as much turnover as everyone...