Kieran Maguire makes £110m Mike Ashley claim after Newcastle United announcement
Newcastle are safe from Financial Fair Play punishment thanks to the £110million profits recorded by former owner Mike Ashley.
That is the view of finance expert Kieran Maguire, who spoke exclusively to Football Insider about Newcastle’s latest financial report.
As confirmed in their latest set of accounts, Newcastle reported losses of £70.7million across the 2021/22 season – a huge increase from their £12.2million losses during the Covid-impacted campaign.
It was the club’s first financial report since their Saudi Arabia-backed takeover, with the report covering the final three months of Ashley’s reign and then the first nine months under new ownership.
The majority of the club’s post-tax loss is due to the £90million spent during the January 2022 window.
However, Maguire insists the Newcastle board will be ‘relaxed’ about finances thanks to the profit recorded by Ashley and the potential for Champions League income next season.
“The losses made by Newcastle United in 2021/22 were mostly due to the significant investment in players, leading to higher amortisation and wage costs,” Maguire told Football Insider.
“But they are only a modest challenge as far as the club is concerned for Financial Fair Play.
“Champions League qualification is worth a minimum of £30million just in prize money, and that’s before the additional revenues are added from ticket sales, sponsor bonuses and the £2.7m earned for each win in the group stages.
“So the club will be relatively relaxed about finances.
“While unpopular on Tyneside, Mike Ashley did leave a legacy financially by making £110m worth of profit in his last years at the club.
“This has allowed the club to spend even more before being pressured by Financial Fair Play limits.“
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