Finance guru salutes Newcastle United after official £112m transfer reveal
Newcastle United have surpassed expectations since the PIF takeover and can now enter a growth phase.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the Magpies’ accounts for 2020-21.
A Companies House submission filed last Monday (16 May) shows that the club made a £16million loss on total revenues of £140m.
But the club’s Covid analysis estimates that they lost £40m as a direct result of the pandemic, meaning they would have turned a profit had it not been for the closure of stadiums.
Also detailed in the accounts is the £167.9m sum PIF have spent since the takeover in October last year, with £112m attributed to transfer payments.
Bruno Guimaraes, Kieran Trippier, Chris Wood and Dan Burn joined in January and helped Eddie Howe’s side rocket away from the relegation battle.
Plumley explains that the Tynesiders can now focus on their long-term plans now survival has been sealed.
“Most of this is transfers at £112m,” the Sheffield Hallam University expert told Football Insider’s Adam Williams.
“The rest of the investment is day-to-day cost associated with running the club.
“In terms of the effectiveness of the investment, you have to say it’s worked. The ultimate goal was to avoid relegation, and they have finished miles clear.
“That was the short term strategy. Now, they can look more towards the long term, starting with recruitment in the summer.”
Newcastle concluded their season with a 2-1 victory at Burnley last Sunday (22 May).
They finished 11th in the final standings.
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