Exclusive: Newcastle United smash club record
Newcastle United’s overall revenue is likely to have surpassed £300million for the first time last season, sources have told Football Insider.
The Tyneside club’s latest published accounts showed their revenue increased from £180million in 2021-22 to £250.3million in 2022-23.
Newcastle have, however, struggled to comply with the Premier League’s financial rules since Saudi Arabia’s Public Investment Fund (PIF) secured its £305million takeover in 2021.
The club recorded losses after tax of £70.7million in 2021-22 and £73.4million in 2022-23, raising concerns around the financial situation at St James’ Park.
The north-east giants were believed to be close to the profit and sustainability (PSR) limit last season following those heavy losses, with top-flight sides only permitted to lose £105million over a rolling three-year period.
Eddie Howe’s side were forced to sell Elliot Anderson and Yankuba Minteh before last year’s 30 June accounting deadline to avoid a potential spending breach for 2023-24.
But their qualification for last season’s Champions League – which was worth around £35million – and an increase in commercial deals has boosted their overall financial situation.
Sources have told Football Insider Newcastle are expected to announce a club-record revenue beyond £300million for 2023-24 after submitting their latest accounts to the Premier League.
Newcastle to face revenue issues without new off-field deals
The difficulty for Newcastle will be increasing – or even maintaining – last season’s improved revenue figures without regular Champions League qualification and significant commercial deals.
They failed to secure European football for this campaign after finishing seventh in the Premier League last season.
The associated party transaction (APT) rules have also blocked Newcastle from agreeing substantial commercial deals with parties linked to their wealthy Saudi owners.
There have been some changes made to the APT rules recently following Manchester City’s legal battle with the Premier League, but those alterations are unlikely to offer Newcastle much more room to manoeuvre.
Finance expert Stefan Borson told Football Insider the Tynesiders’ progress is likely to be blocked until they can start generating more than £500million in revenue a season.
But matters on the pitch have certainly improved for Howe’s side lately after five straight victories in the Premier League have moved them up to fifth in the table.
Borson told Football Insider Newcastle could land a £100million windfall if they were to qualify for next season’s Champions League following their outstanding recent form.
In other news, Newcastle make new Fikayo Tomori move after player’s U-turn.
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