Christian Purslow has admitted that Newcastle United still face a significant challenge in competing at the top of the Premier League, despite changes to financial regulations.

From next season, Squad Cost Ratio (SCR) will replace Profit and Sustainability Rules (PSR). The new regulations will cap on-pitch spending - including wages, transfer amortisation and agent fees - at 85% of a club's revenue.

However, clubs participating in European competitions will face an even tighter limit of 70%, in line with UEFA regulations.

Newcastle announced significant financial results last week, with record revenues recorded and a 44% increase in commercial income as the club’s turnover rose by £15m to £335.3m despite having no European football. Profit after tax was £34.7m.

Purslow, who has been managing director at both Liverpool and Chelsea, as well as chief executive at Aston Villa, believes that while the results are impressive, the new rules coming in this summer will still stop United from challenging the 'Big Six' cartel.

"The first thing to say is that SCR starts in the summer, and...