newcastle United Suffers Financial Loss

Premier League football club Newcastle United has posted £70.7m of losses during the first accounting period following the Saudi consortium’s takeover of the club.

The accounts, which run from July 2021 to June 2022, does take in the final three months of Mike Ashley’s tenure, as well as the first nine months of the ownership group comprising Amanda Staveley’s PCP Capital Partners , the Reuben Brothers and the 80% majority shareholders, the Saudi Arabia’s Public Investment Fund (PIF).

The majority of the post-tax loss is due to the £90m spent on five signings during the January 2022 window, while the club has confirmed that a further £170m has been invested in transfers since.

The previous year, Newcastle lost £12.2m, largely as a result of COVID-19 restrictions affecting matchday revenue and leading to rebates to TV companies.

The club did see commercial revenue increase by 52% from £17.6m to £26.5m, as turnover rose from £140.2m in 2020-21 to £180m, in the first full post-pandemic season.

The first season of the six-year Castore kit-supplier deal also noted as a key contributor.

There was also a year-on-year appreciation in media income (from £119.3m to £124.1m) and a slight growth in matchday revenue (£27.3m to £27.5m).

The Magpies has seen its wage budget increase by 59% inside 12 months, from £106.8m to £170.2m, following a flurry of high profile signings and a new management team.

The club highlighted the need to increase its revenue streams and become less reliant on share issues and cash injections from its owners, to ensure it stays with European football’s Financial Fair Play (FFP) rules.

Darren Eales, the CEO, said, “This is an ambitious, long-term project. The financial success of the club goes hand in hand with our performances on the pitch.

“We have come a long way in the past few months. There’s still a long way to go but we are looking to the future with confidence.”