Newcastle have announced a loss of £70m over the 2021/22 season, showing the importance of lucrative new commercial deals to balance the books and boost our spending power in light of FFP restrictions.
The club have added in a statement that this was largely ‘driven by investment in the playing squad during the 2022 January transfer window’, which was necessary for the club to avoid relegation just a few months after new owners arrived.
Turnover at Newcastle has increased by almost £40m, rising from £140.2m to £180m – mainly due to fans returning after Covid – while the wage bill has soared; which is to be expected in light of new signings.
Elsewhere today, it’s been confirmed that we paid £10.7m in agents fees over the last two transfer windows; considerably less than the £54m shelled out by Man City in that time.
Here’s the club statement on our financial results – which you can read in full here – along with comments from CEO Darren Eales:
Newcastle United has today filed its financial results for the 2021/22 financial year.
These are the first figures reflecting the club’s financial performance since it was acquired by an ownership group comprised of PIF, PCP Capital Partners and RB Sports and Media in October 2021 and the results therefore include nine months under the new shareholders’ ownership.
A loss after tax of £70.7m was reported by Newcastle United Limited for the 12 months ending 30 June 2022, driven mostly by the investment in the playing squad during the January 2022 transfer window.
The numbers also show a sharp recovery in revenues to £180m from £140.2m the previous year, as crowds that returned to St. James’ Park after the end of restrictions imposed during the Covid-19 pandemic contributed to enhanced matchday revenues. Commercial and media rights revenues have also increased as the club’s league standing improved for the season.
Since the end of the accounting period, the new ownership group has injected additional capital into the club to improve the financial position of the business.
Darren Eales, Chief Executive of Newcastle United, 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.”
The club’s accounts for the 12 months ending 30 June 2022 can be found here.
