Sources: Newcastle United to make record £179m-plus announcement
Newcastle United registered club-record revenue for the 2021-22 financial year, sources have told Football Insider.
The Magpies’ turnover for their first post-pandemic season surpassed the £178.5million they recorded in 2017-18.
But heavy spending in the transfer market following the Saudi Public Investment Fund’s takeover in October last year has led to an increase in amortisation and means the club is forecasted to present a total loss approaching £50m.
The new owners sanctioned close to £90m of expenditure in January on the signings of Bruno Guimaraes, Chris Wood, Dan Burn and Matt Targett, while the sacking of Steve Bruce cost around £8m.
That outlay coupled with the inspired appointment of Eddie Howe saw the club not merely dodge relegation but only narrowly miss out on a top-half finish
A source has told Football Insider that the return of matchday income and an upswing in both commercial and broadcasting revenue mean the Tynesiders’ turnover hit an all-time high.
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The club are due to release their accounts, which cover the 12 months up to 30 June 2022, by 31 March next year.
The 2021-22 campaign was the most significant in Newcastle’s recent history as Mike Ashley’s 14-year reign came to an end with the PIF’s £305m takeover.
Commercial revenue had stagnated under Ashley and PIF are already exhibiting far more ambition in this department.
The club has announced seven new sponsorship deals since the takeover, four of which are with companies in whom PIF have either a stake or close corporate links.
The Premier League’s Financial Fair Play rules mean that Increasing revenue will be crucial if Newcastle are to unlock the near-limitless spending power of their owners.
In other news, pundit suggests Newcastle United could sanction £70m Moises Caicedo bid after journalist’s update.