The regulations, which restrict allowable losses to £105 million over a rolling three-year period, aim to foster financial stability.

For clubs that have spent time outside the top tier during this period, the cap is lower, set at £39 million.

With proposed new spending regulations postponed until 2026/27, the current framework will remain in effect for at least one more season.

This means clubs must navigate the existing transfer market with stringent financial discipline or risk facing sanctions that have already cost teams valuable points in recent seasons.

Here are the clubs most likely to breach PSR financial regulations:

Manchester United

Manchester United has been the focus of intense speculation regarding their PSR situation, with some early reports indicating the club is at significant risk of breaching.

In reality, the situation is more manageable.

By utilizing their Red Football Limited subsidiary, carefully structuring transfer fees, and executing targeted player sales such as Marcus Rashford's loan to Barcelona, along with internal cost reductions, the club is believed to have established a compliance buffer exceeding £140 million.

This offers short-term stability, though it does not allow for unrestricted spending.

Maintaining a strong focus on wage management and growth in commercial income will be crucial to sustain this position beyond the current cycle, so the Red Devils are still very much treading carefully - especially with expenditures exceeding £200 million on the acquisitions of Matheus Cunha, Bryan Mbeumo and Benjamin Sesko this summer.

Aston Villa

Aston Villa's situation is significantly more precarious.

Over the past two financial years, the club reported pre-tax losses of £206.2 million.

This leaves an estimated £15 million in allowable losses before exceeding the PSR limit.

UEFA has already confirmed that Villa exceeded the squad cost ratio last season, spending around £252 million on wages and transfers against a revenue total of £257.7 million - well above the 80% cap.

While qualifying for the Champions League this season provides a financial boost, any decline in performance or an early exit from Europe would heighten their vulnerability.

The club's recent hiring of Francesco Calvo to oversee commercial strategy aims to enhance revenues, but the immediate challenge will be managing expenses without compromising squad strength.

Newcastle United

Newcastle's Saudi Arabian ownership group has the capacity to invest heavily, but PSR limitations have moderated ambitions.

Planned infrastructure improvements have been postponed, and several high-profile transfer attempts have stalled.

While the club is not currently on the verge of a breach, their flexibility is restricted, especially if revenue growth fails to keep pace with player expenses.

With competitors benefiting from stronger commercial portfolios, Newcastle's financial competitiveness is more limited than many expected following the Saudi Public Investment Fund acquisition.

Everton and Nottingham Forest

Everton and Nottingham Forest have both already experienced points deductions for PSR violations, with Everton losing eight points and Forest four during the 2023/24 season.

Both clubs have since tightened their spending and have so far avoided further penalties, but they remain under close regulatory scrutiny.

In practical terms, their transfer strategies must prioritize affordability over ambition, and any decline in revenue - particularly from broadcasting or matchday sources - could quickly push them back into violation territory.

Promoted clubs

For newly promoted teams like Leeds,Burnley, and Sunderland, the PSR limit is significantly stricter.

The £39 million loss cap over three seasons allows little margin for error, especially considering the escalating costs of competing in the Premier League.

While early transfer activity for these clubs has been relatively modest, the financial challenge will increase if survival necessitates substantial spending in January.