Newcastle United chief makes crucial FFP claim & Man City comparison after club confirms £155m loss

Newcastle United have confirmed the club increased its revenues by 39% during the 2022-23 season, despite publishing losses in excess of £155million over the last three seasons.

Newcastle United 2022-23 finances overview

The club's loss after tax was £73.4million for the 12 months ending June 30, 2023. A slight increase from the previous year's loss of £70.7million driven by the ongoing investment into the playing squad.

Newcastle's revenue increased from £180million to £250.3million due to increased match day, commercial and media revenue. The club's revenue is still significantly smaller than the established teams that finished around them in the Premier League last season with both Liverpool and Manchester United's reported revenue in excess of £600million.

The Magpies reached the Carabao Cup final while also finishing fourth in the Premier League. Newcastle's prize money for competing in the Champions League (around £37million) will be reflected in the 2023-24 accounts published next year.

Crucially, Newcastle's staff costs to turnover ratio decreased significantly from 94.6% to 74.1% despite the average player wage increasing to £94,600-per-week with the club generating an operating profit before player amortisation and impairment costs of £20.1million, an increase from the £26.4million loss recorded the previous year.

The club confirmed that since the end of the accounting period, owners PIF (Saudi Arabian Public Investment Fund) have injected additional capital into the club 'to improve the financial position of the business'. A total of £127million was injected during the 2022-23 campaign.

Newcastle United's increased commercial revenue

Newcastle's commercial income increased 66% from £26.5million to £43.9million due to new commercial partnerships and events during the season. The club highlighted the Diriyah Season Cup tour of Saudi Arabia in December 2022 and the two Sam Fender concerts at St James' Park in June 2023 as 'most notable' contributors.

The Magpies' media income rose from £124.1million to £165.5million with the club featuring on live television broadcasts 26 times in the UK compared to 21 the previous season. The club also generated more prize money from finishing higher in the Premier League table.

Newcastle's match day income increased from £27.5million to £37.9million due to added cup fixtures played at St James' Park as well as an 'enhanced' pre-season and mid-season friendly programme.

Newcastle United 2022-23 transfer fees

Newcastle's latest financial statement reads that the club's net spend on player transfers for the 2022-23 season was £150million, up from £143million the previous season. The 2022-23 season saw Newcastle sign Sven Botman, Alexander Isak and Anthony Gordon while facilitating the sales of Jonjo Shelvey and Chris Wood to Nottingham Forest.

Newcastle United CEO reacts to 2022-23 financial report

Newcastle chief executive Darren Eales said: “Newcastle United has had a very successful year both on and off the pitch.

“40% year-on-year growth since the takeover, it’s vast year-on-year growth. We have got the positive tailwinds of SELA front of shirt [sponsor], Champions League money, Adidas coming in June which will be a big jump for us as we can control our own retail and merchandise which hasn’t been the case before.

"The reality is that with the performances we have had on the pitch and the buzz around the club we are seeing more and more commercial partners wanting to become part of this journey. It’s a snowball going down a hill. As we are doing better on the pitch it is helping us with commercial partnerships.

"We are excited about the trajectory but we have still got grounds to make up. £710million at Man City, Spurs £444million their last accounts, so we know we have got lots to do.

"But the exciting thing is we have an ownership that is committed and supportive, and we are an amazing one city, one club. We have the pieces in place that’s going to give us that future growth. We just need to be as quick and efficient as we can to get to where we want to be."

Are Newcastle United compliant with FFP & profit and sustainability rules?

Newcastle's loss over the last three years as per the club accounts stands in excess of £155million. Financial Fair play rules in the Premier League require clubs to make a loss of no greater than £105million over a three-year period.

However, The Gazette understands various expenditures including but not limited to the academy, women's football and charity, as well as a depreciation figure of around £8million, are added back to the loss - resulting in an overall loss of under £105million.

And CEO Eales claims the club are complying with Financial Fair Play and PSR guidelines. "We're compliant in the year we're talking about here and our plans are always to be compliant going forward," he said. "That is part of our business plan and part of our model.

"The Everton [points deduction] judgment showed that there were teeth to the PSR regime and I think that's something that's probably focused a lot of minds within the Premier League, that this is something that's real.

“To be clear, right from our takeover, we've understood that that's the regime that we're in and our business plan and everything we do are premised on the basis that we're compliant.

“But I think it's fair to say that a lot of people probably didn't expect it to be the level that it was, and that's has certainly focused minds."

Eales added: "We have always been transparent, that this is a journey we are on. It's an exciting journey.

"We see the number on the accounts and the level of growth. We have had the excitement in the past year with a cup final at Wembley and the Carabao Cup, qualifying for the Champions League and that game against PSG.

"It is not a straight line from A to B. I think that is the important thing. We have an ownership group that are passionate about the club and patient.

"There is a lot of long-term investment. We know where we are and we can only set that vision out. That is what we are committed to.

"It is an ownership that will always spend to the maximum within the Financial Fair Play regime. We have seen it in the accounts, there is everything in there in terms of investment to the training ground, Strawberry Place, St James' Stack and what that will bring to the club.

"We always have to be wary that there is a finite amount of resources you can allocate over a certain period of time.

"I'd reassure the fans and they have seen the commitment from the ownership.

"What Dan [Ashworth] and Eddie [Howe] are doing on the pitch but we are not in this for the short-term, we are in it for the long-term."