Newcastle United Finances 2021/22

The Changing Man

Newcastle United’s 2021/22 accounts cover a season of major change, reflecting the club’s financial performance since its ownership changed hands, as Mike Ashley’s long reign came to an end.

The club was acquired in October 2021 by Saudi Arabia’s Public Investment Fund (80% majority stake), as well as PCP Capital Partners (10%) and RB Sports & Media (10%). Therefore, these financial results include nine months under the new shareholders.

It’s almost forgotten now, as Newcastle are riding high in the league, but there was a distinct threat of relegation when the new owners arrived, as the club languished in 19th place. As a result, head coach Steve Bruce exited stage left with Eddie Howe announced as his replacement.

In the end, Newcastle finished in a comfortable mid-table position and have not looked back since.

Profit/(Loss) 2021/22

Newcastle’s pre-tax loss widened from £14m to a club record £73m, despite revenue increasing by £40m (28%) from £140m to £180m and profit on player sales rising £4m to £6m. This was because operating expenses shot up by nearly two-thirds (£102m) from £156m to £258m.

The club said this was “driven mostly by investment in the playing squad, in alignment with a long-term strategic objective to improve the competitive position of the team.”

The loss after tax also increased from £12m to £71m.

It is worth noting that Newcastle’s 2020/21 accounts only covered 11 months, as the previous reporting period was extended to 31st July 2020 to take into consideration COVID delaying the end of that season.

This had little impact on revenue, as the vast majority arises during the playing season, but the difference was more significant for costs, which accrue evenly throughout the year.