Newcastle United financial results show big loss – and hike in commercial revenues
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The results, for the 2021/22 financial year, show a loss after tax for Newcastle, taken over in October 2021, of £70.7million.
United’s results state: “The loss has been driven mostly by investment in the playing squad, in alignment with a long-term strategic objective to improve the competitive position of the team. Improving the sporting performance of the team will, over time, improve the commercial revenues and overall financial performance, and valuation, of the group.”
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Hide AdClub revenues rose from £140.2million to £180million as crowds returned following the Covid-19 pandemic which saw football go behind closed doors.
Wage costs
Staff costs increased £63.4million to £170.2million due to new signings and the “change in first-team management”. Steve Bruce was replaced as head coach by Eddie Howe following the takeover – he left with a multi-million pound pay-off – and the results include a provision for “onerous employment contracts and other charges” of more than £14million.
Newcastle were in the relegation zone when Bruce left his position, and the club signed five players in last January’s transfer window.
The results state: “The club invested heavily during the January 2022 transfer window, bringing in Kieran Trippier, Dan Burn, Bruno Guimaraes, Chris Wood and (on loan) Matt Targett.
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Hide Ad"After winning 12 and drawing two of the final 18 games, the club finished in 11th place in the league with 49 points.
"The higher league position and player signings increased the wage bill considerably, increasing our staff costs to turnover ratio to 94.6% (2021: 76.2%).”
United’s results also state that commercial income during the accounting period increased from £17.6million to £26.5million “reflecting the first year of the Castore sponsorship, increased revenue from Premier League and club commercial partners and the return of matchday and non-matchday commercial activities and events”.
‘Ambitious’ plan
Newcastle chief executive Darren Eales said 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.”
United’s owners have injected additional capital into the club since this accounting period.