Finance expert raises interesting point about Newcastle United's Covid losses compared to Everton
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The accounts provide a financial overview of Newcastle United Football Company Limited’s finances in the 11 months leading up to June 30, 2021 – Mike Ashley’s final season as Newcastle owner.
And they show that the club reported to have lost a total of £40.3million as a direct result of the pandemic over the 2019-20 and 2020-21 seasons. The club posted a loss of £14.4million due to Covid-19 in 2020, where only a portion of matches were played behind closed doors.
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Hide AdBut in 2020-21, that loss increased to £25.9million as all but one of the club’s home matches that season were played behind closed doors. The one game in which fans permitted saw a socially-distanced crowd of 10,000 at St James’s Park.
In comparison, Aston Villa claimed Covid-19 losses of £56million (£19.4million in 2019-20 and £36.6million in 2020-21).
But football finance expert Kieran Maguire was quick to highlight that Newcastle’s Covid-19 losses were ‘substantially less’ than that of their Premier League rivals Everton – who attributed a loss of £170million as a direct result of the pandemic, £103million of which came during the 2020-21 season.
But the reason for the financial disparity has not been made clear in either club’s accounts.
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Hide AdBoth clubs generated a matchday revenue of £0.2million during the 2020-21 season due to the limited attendances.
Earlier this year, Everton confirmed a loss of £120.9million for the year ending 30 June 2021.
Profit and sustainability rules state clubs must limit their losses to £105million over a three year period. The Covid-19 pandemic saw these rules relaxed slightly to allow clubs four years to limit their losses but in that time The Toffees posted a combined loss in excess of £380million between 2017 and 2021.
Despite posting a significant loss, the fact Everton claimed £170million was down to Covid-19, while also citing new stadium plans, should see them avoid any form of punishment.
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Hide AdEarlier in the season, reports emerged that Everton could be facing a points deduction should they be found in breach of the new profit and sustainability rules.
But The Toffees confirmed that they have been working formally with the Premier League regarding its compliance profitability sustainability regulations.