Newcastle United chief makes crucial FFP claim after club confirms £155m loss

Newcastle United’s 2022–2023 financial results are now available.

Even though Newcastle United reported losses exceeding £155 million for the previous three seasons, the team has acknowledged that its revenue increased by 39% in the 2022–2023 season.

Newcastle United’s financial picture for 2022–2023
The club’s 12-month loss, net of taxes, was £73.4 million as of 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 rose from £180 million to £250.3 million as a result of higher match-day, media, and commercial income. The club’s revenue remains a great deal less than that of the well-established teams that finished in the Premier League around them last season, with Manchester United and Liverpool both reporting revenue in excess of £600 million.

The Magpies finished fourth in the Premier League and advanced to the Carabao Cup final. Newcastle’s prize money (roughly £37 million) from their Champions League participation will be included in the 2023–24 financial statements that are released the following year.

Newcastle were eliminated from the Champions League after falling to a 2-1 defeat against AC Milan. (Getty Images)

Importantly, despite the average player salary rising to £94,600 per week, Newcastle’s staff costs to turnover ratio dropped dramatically from 94.6% to 74.1%. The club made an operating profit of £20.1 million before player amortisation and impairment costs, up from a £26.4 million loss the year before.

The club verified that PIF (Saudi Arabian Public Investment Fund) owners have added more funds to the club ‘to improve the financial position of the business’ since the end of the accounting period. Over £127 million was invested in the 2022–2023 season.

Newcastle United’s higher sponsorship income

Newcastle’s revenue from events and new commercial partnerships during the season caused a 66% increase in revenue from £26.5 million to £43.9 million. As’most notable’ contributors, the club singled out the two Sam Fender concerts at St James’ Park in June 2023 and the Diriyah Season Cup tour of Saudi Arabia in December 2022.

The Magpies saw an increase in their media income from £124.1 million to £165.5 million as a result of their 26 live television appearances in the UK this season, up from 21 the season before. Additionally, the club’s higher Premier League table finish meant more prize money was earned.

Newcastle’s income from match days increased from £27.5 million to £37.9 million as a result of more cup matches held at St James’ Park and a “enhanced” friendly schedule for the pre- and mid-season.

Newcastle United transfer fees for 2022–2023
According to Newcastle’s most recent financial statement, the club spent £150 million, up from £143 million, on player transfers in the 2022–2023 season. Newcastle signed Sven Botman, Chris Wood, and Alexander Isak for the 2022–2023 season, and helped Nottingham Forest acquire Jonjo Shelvey and Chris Wood.

Newcastle United CEO reacts to 2022-23 financial report

“Newcastle United has had a very successful year both on and off the pitch,” stated Darren Eales, chief executive of Newcastle.

40% annual growth since the takeover is a significant annual growth. The fact that we can now control our own retail and merchandise—something we haven’t done before—along with the Champions League money and the sponsorship of SELA front of shirt—all provide us with positive tailwinds. Adidas is scheduled to arrive in June.

“The truth is that more and more business partners are expressing a desire to join us on this journey as a result of the on-field performances we have had and the buzz surrounding the club. A snowball is sliding down a slope. Our improved performance on the field is benefiting our business relationships.

“We are happy with the trajectory, but we still need to gain ground. £710million at Man City, Spurs £444million their last accounts, so we know we have got lots to do.

“The exciting thing, though, is that we are a fantastic one city, one club, with a dedicated and supportive ownership. The components that will enable our future growth are in place. To get where we want to go, we simply need to move as quickly and effectively as possible.”

Does Newcastle United adhere to the profit, sustainability, and FFP regulations?
Newcastle has lost more than £155 million in the last three years, according to the club’s accounts. According to Premier League Financial Fair Play regulations, clubs must lose no more than £105 million in three years.

The Gazette has learned, though, that a number of expenses, such as those related to the academy, women’s football, and charitable organizations, in addition to a depreciation figure of approximately £8 million, are added back to the loss, yielding an overall loss of less than £105 million.

Additionally, CEO Eales asserts that the team complies with PSR and Financial Fair Play regulations. “We’re compliant in the year we’re talking about here and our plans are always to be compliant going forward,” he stated. That is included in our model and business plan.

“I think that’s something that’s probably focused a lot of minds within the Premier League, that this is something that’s real,” as the Everton [points deduction] ruling demonstrated that the PSR regime had teeth.

To be clear, we have known since the day of our takeover that this is the regime we operate in, and everything we do, including our business plan, is predicated on our compliance.

“However, I believe it’s accurate to state that many people probably didn’t anticipate it to reach the height that it did, and that has undoubtedly focused minds.”

“We have always been transparent that this is a journey we are on,” Eales continued. It’s a thrilling voyage.

“We can observe the amount and growth rate on the accounts. The previous year was filled with excitement, including a Wembley Cup final, the Carabao Cup, qualifying for the Champions League, and that matchup with PSG.

“The path from point A to point B is not linear. That, in my opinion, is what matters most. Our ownership group is enthusiastic about the club and patient care.

“A lot of long-term investment is made. We can only outline that vision because we are aware of where we are. To that end, that is our commitment.

Within the parameters of the Financial Fair Play system, this ownership will always spend to the maximum. Everything about the investments made in the training facility, Strawberry Place, St. James’ Stack, and the benefits they will provide for the team is detailed in the accounts, as we have seen.

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

“I would reassure the supporters, who have observed the ownership’s dedication.

“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.”