By David Owen
April 3 – Newcastle United have produced accounts covering the club’s first nine months under the ownership of an investment group led by Saudi Arabia’s Public Investment Fund (PIF).
The Magpies ran up a pre-tax loss of £72.9 million for the year to end-June 2022, as the costs of trying quickly to build a more consistently winning team outran the pace of revenue gains.
While turnover rose by nearly £40 million compared with the prior period of 11 months to reach £180 million, operating expenses before amortisation and impairment jumped by some £83 million to £206.3 million. The operating loss climbed from £13.7 million to £71.7 million.
The accounts state that provisions for “onerous employment contracts and contingent transfer fees payable” were lifted from £1 million to £19.6 million. The club recorded a small £5.8 million profit on player transfers in the latest period. The cash flow statement indicates, nonetheless, that the Tynesiders spent £74.4 million on players in the period under review, while recouping just over £10 million from player sales.
Notes to the accounts indicate that £937,500 was charged to the club in fees for “strategic advisory services” by Cantervale Limited, a company controlled by Newcastle director Amanda Staveley, during the months since the ownership change.
The Notes also state that a “capital contribution” of £676,000 was received from PIF to “meet the cost of the first team squad’s warm weather training camp in Saudi Arabia”.
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