Finance guru: Newcastle United set for ‘big’ loss after £40m news confirmed
Newcastle United will likely post greater losses in future years as they look to climb the table under their new owners.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the Magpies’ financial results for the year ending 30 June 2021.
The figures, which were released via Companies House last Monday (16 May), detail a £16million loss for the accounting period as revenue by almost 10 per cent to £140m.
But Newcastle attribute £40m worth of losses to the pandemic, which meant stadiums remained shut for almost all of 2020-21.
Fans returned to St James’ Park ahead of the Saudi Public Investment Fund’s takeover in October last year.
And Plumley anticipates that the ambitious new owners will, in contrast to the previous Mike Ashley regime, be prepared to take more losses to fund the club’s growth.
“The figures are about what we expected them to be,” the Sheffield Hallam University expert told Football Insider’s Adam Williams.
“It’s difficult to comapre like-for-like because the acounting period has shifted from last year. One was 11 months and the other was 13 months. That won’t shift the revenue dial that much but it will shift the costs a bit.
“Based on their Covid projections, it is likely they would have made a profit. They made a profit in seven of the last 10 years with Ashley. He ran a steady ship financially.
“You would expect there to be quite a big difference further down the line in that regard.”
Newcastle finished 11th in the Premier League in 2021-22.
They were due to return to action in a pre-season tournament in the United States, but it has been cancelled by the organisers.
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