January 12 – Newcastle United have reported a loss after tax of £73.4 million for the 12 months ending 30 June 2023, on revenues of £250.3 million, an increase from £180 million the previous year.
The financial period covers a season when the club had a run to the EFL Cup final and finished fourth in the Premier League. Revenues from their participation in this season’s Champions League will be reported in next year’s accounts.
While the revenues grew by £70 million and the crucial wages to turnover ratio dropped from an uncomfortably high 94.6% in 2022 to 74.1% in 2023, the extra costs were attributed primarily to investment in the first team squad.
Newcastle United CEO Darren Eales did not rule out the possibility of player sales to meet financial fair play rules or free up money for other player purchases, but said: “Any decision we make will always be against the backdrop of the medium to long-term benefit for the club,” added Eales.
“It’s difficult to say specifically on certain players, but I can say that, if we’re going to get to where we want to get to, at times it is necessary to trade your players.”
Eales pointed out that while income had grown to £250 million, the club was still a long way off competing at the financial level of a top six club in the Premier League, referencing Tottenham Hotspur’s £440 million turnover and Manchester City’s £710 million as benchmarks.
He emphasised that the Newcastle United project was still building its base to achieve that sustainability.
“We continue to make progress each day as we strengthen the foundations of the long-term project that we are developing here at the club,” said Eales.
All the key revenue lines rose with match income increasing £10.4 million (38%) from £27.5 million to £37.9 million, primarily due to the EFL Cup run and seven added fixtures.
Media income rose £41.4 million (33%) from £124.1 million to £165.5 million. While finishing fourth in the league saw the club’s merit award along with the number of live TV appearances increase by £26 million.
Commercial income also increased £17.4 million (66%) from £26.5 million to £43.9 million.
Staff inevitably made up the bulk of increased costs of £16.5 million (10%), up from £170.2 million to £186.7 million year-on-year. The club said the main factors for the increase being higher merit-based bonuses for the playing squad, team management and club staff as a result of 4th place finish.
Across the club there has been an increase of about 100 employees “as the build out continues across football operations, commercial teams, executive and central support functions”.
In the reported period Alexander Isak joined in a £63 million move in August 2022 and winger Anthony Gordon arrived in a transfer worth £45 million in January 2023. Since the takeover by the Saudi Public Investment Fund (PIF) in 2021, £400 million has been spent on player acquisitions.
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