Newcastle United post big loss in revealing set of financial accounts
The cost of Covid-19 has been revealed in Newcastle United’s latest set of accounts.
The club, hit by the coronavirus pandemic which saw football go behind closed doors, posted an operating loss of £54million for the period up to July 31, 2020. The loss after tax is £22.5million, and the accounts state: "These financial results do not reflect a ‘normal’ year for the group.”
Matchday revenue was down 30%, while wages, at £121million, were up 20%. Newcastle spent £76million on players, and recouped £30million from player sales. Owner Mike Ashley’s loan to the club stands at £106.9million.
The accounts state that the club has since “committed to a further maximum net spend of £48million in respect of changes to the playing squad and team management”.
Head coach Steve Bruce – who has spoken about the financial toll the pandemic has taken on the club – is yet to make a signing so far this summer.