The owners of the Newcastle Falcons and Thunder rugby teams swung to a loss as the early pandemic hit its operations on the pitch, accounts have revealed.
Newcastle Rugby Limited - the parent group for Newcastle Falcons rugby union team and its rugby league counterparts, Newcastle Thunder - has released accounts for the year ending June 28 2020.
The accounts cover a successful season for the Falcons on the pitch, with the team winning all of its matches and securing promotion back to the sport’s top flight.
But the early months of the pandemic meant the season was curtailed and impacted on the club financially, with a £3.9m profit a year earlier turned into a £442,000 loss for the financial year.
The accounts reveal that Newcastle Rugby now has net liabilities of £19.3m, most of which are owed to majority shareholder Semore Kurdi.
But it has benefitted from Government coronavirus support and secured a support loan from Sport England in what turned out to be a positive season back in the rugby Premiership.
In the accounts, Mr Kurdi says: “Investment in the group’s infrastructure, playing and coaching staff, as well as continued support for its academy and youth programmes are critical to the continued progression of the rugby club.
“Match day attendances decreased during the 2019-20 campaign due to the Newcastle Falcons relegation to the championship in the prior season. The club were however able to retain a number of key players and staff members, including the director of rugby, which has ultimately enabled the club to return to the Premiership at the first attempt.
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“The 2019-20 campaign came to an end in March 2020 due to the Covid-19 pandemic. The championship season was abandoned, however promotion back to the Premiership was granted to the club, which was a major positive.
“During the season, 22 games were played across all competitions and performance on the pitch was excellent with the team winning all 22 matches. Furthermore, the Falcons’ place among the top flight of English rugby has been secured for the 2021/22 season post year end.”
The accounts show that Newcastle Rugby’s turnover fell from £12.5m a year earlier to £11.1m, due mainly to marketing and ticket income falling to less a third of previous levels. Operating losses actually narrowed as the club reduced expenses and received a £984,923 grant from Sport England.
The Falcons have enjoyed a relatively positive season on the pitch, securing its position in the Premiership with ease and seeing three of its players picked to play for England at the weekend.