Newcastle would have breached PSR without two last-gasp sales – Stefan Borson
Newcastle United made a profit for last season following their last-ditch sales of Elliot Anderson and Yankuba Minteh before the accounting deadline.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider the Tyneside club would have breached the profit and sustainability rules (PSR) without those sales.
Newcastle have struggled to comply with the Premier League’s financial rules since Saudi Arabia’s Public Investment Fund (PIF) secured its £305million takeover in October 2021, with top-flight sides only permitted to lose £105million over a rolling three-year period.
The north-east giants were forced to sell Anderson to Nottingham Forest and Minteh to Brighton before last year’s 30 June accounting deadline to avoid a spending breach for 2023-24.
iNews reported on 3 January Eddie Howe’s side are set to announce their first profit in five years for last season after submitting their accounts to the Premier League.
Football Insider revealed on 8 January Newcastle’s overall revenue likely surpassed £300million for the first time in 2023-24 – marking a significant increase on the £250.3million they posted in 2022-23.
Newcastle profits are not down to operating success
Borson insisted the club’s profits are not down to them performing well from an operating perspective.
He told Football Insider: “The reason they are going to make a profit is partly to do with the Champions League, but it’s largely to do with the player sales they made right at the end of the window.
“Had they not made those, they would have breached PSR.
“On an underlying basis at the operating level, Newcastle are like virtually every other club in that they are losing money.
“From the numbers I’m looking at before you take into account player sales, I think they will lose even more this season.
“They will be slightly profitable for last year for PSR, but that’s after something like £80-85million of player-trading profits because they sold two players who were effectively on the books at zero. That explains their profits.
“It’s not because they are performing spectacularly well from an operating perspective.”
In other news, Newcastle owners bankroll £15million injection – official documents filed.
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