HomeEuropeNewcastle United records £73.4m loss in 2022-23 financial year but revenue skyrockets

Newcastle United records £73.4m loss in 2022-23 financial year but revenue skyrockets

Newcastle United records £73.4m loss in 2022-23 financial year but revenue skyrockets

English Premier League club Newcastle United has declared a financial loss of £73.4 million for the 2022-23 financial year, citing ongoing investments in the playing squad as the primary cause.

This figure aligns with the club’s previous financial performance.

Since the acquisition by a consortium backed by the Saudi Public Investment Fund (PIF) in October 2021, Newcastle has committed over £400 million to player acquisitions. Swedish striker Alexander Isak became a record-breaking signing for the club via a £63 million move from Spain’s Real Sociedad in August 2022.

Despite the financial setback, Newcastle reported robust financial growth, with revenues increasing by 39 percent to £250.3 million – up from £180 million the previous year. The surge in matchday, commercial and media rights revenues contributed significantly to this uptick.

Newcastle enjoyed a successful 2022-23 season on the field, reaching its first major cup final in 24 years – losing the EFL Cup decider to Manchester United – and securing a fourth-place finish in the Premier League, qualifying for the 2023-24 UEFA Champions League.

To strengthen the club’s financial position, the ownership group injected additional capital post the accounting period ending in June 2023, aligning with PIF’s long-term investment approach. Despite positive strides, Newcastle may face player sales in the upcoming summer to comply with the Premier League’s Profitability and Sustainability Rules.

Darren Eales, Newcastle’s Chief Executive, expressed optimism about the club’s progress.

“Newcastle United has had a very successful year both on and off the pitch,” Eales boasted.

“We grew revenues by 39 percent, with an increase in TV money, improved sponsorship deals, and a sharper focus on everything we are doing across the club.

“We continue to make progress each day as we strengthen the foundations of the long-term project that we are developing here at the club.

“Any decision we make will always be against the backdrop of the medium to long-term benefit for the club. It’s difficult to say specifically on certain players, but I can say that, if we’re going to get to where we want to get to, at times it is necessary to trade your players.”

The Magpies’ 2023-24 season has not been quite as fruitful football results-wise, slipping to 10th on the EPL ladder with less than half of the campaign remaining thanks to six losses in their last seven games, and a swift exit from the Champions League group stage.

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