Newcastle United almost doubled its commercial revenues and added more than 100 employees as it strived to become one of the top teams in England, new accounts reveal.
The club - which was bought by a Saudi-led consortium in 2021 - has released accounts for the year ending June 30, 2024, a year in which the club competed in the Champions League for the first time in 20 years. The period saw the club increase revenues by 28% to £320.3m and record an operating profit of £1.2m. An overall loss of £11.1m was reported, but this was a significant improvement on the £71.8m loss a year earlier.
Within the increased revenues, the club brought in £29.8m from its participation in the Champions League and also increased commercial revenues by 90% to £83.6m thanks to new sponsorship deals, a four-part Amazon documentary and new retail and catering activities. The club increased its headcount to 525, with the majority of that coming in its business operations.
The accounts reveal that the club invested £16.4m into its St James’ Park ground, its training ground and the Stack leisure park in Newcastle city centre.
The accounts say: “The group has continued its on and off the pitch progress and growth in the 2023/24 season driven by the vision and investment provided by the shareholders led by PIF. These reports and accounts set out a brief summary of the substantial progress made by the group in the year delivering substantial revenue growth, continued strong on pitch performance and further strengthening of the group’s underlying organisational capacity.
“The directors report a loss after tax for the year of £11.1m (2023: loss £71.8m restated), a substantial reduction in the loss from the last two financial years. The club has generated significant revenue growth from participation in the UEFA Champions League (“UCL”) alongside an enhanced profit on player trading, partially offset by further investment into the playing squad and in the club’s operational performance.
“UCL participation and growth across key sponsorship and commercial income streams contributed towards a profit of £28.8m before player amortisation & impairment (2023: profit of £21.6m restated). Player amortisation and impairment costs rose to £97.5m (2023: £89.3m) in line with the increased value of the playing squad offset by an increase in the profit on disposal of players and staff registrations of £69.8m (2023 £2.8m). The continuation of investment into the team to improve its competitive position and to develop the group’s infrastructure has led to further improvements in the Group’s commercial revenues and overall financial performance.”
The accounts cover the 2023-24 season when Newcastle United finished seventh in the Premier League, narrowly missing out on European qualification. The team is currently sixth in the league and pushing for a return to the Champions League, as well as competing in the Carabao Cup final later this month.
The results strengthen the club’s position in relation to the Premier League’s profitability and sustainability rules (PSR), which have constrained them despite the deep pockets of the majority owners, the Saudi Arabian Public Investment Fund (PIF).
The PSR limit clubs to maximum losses of £105m over a three-season assessment period, with points deductions having been applied to Everton and Nottingham Forest last term for breaches. The departures of Allan Saint-Maximin in the summer of 2023 and Elliot Anderson and Yankuba Minteh last summer counted towards a profit on disposal of player registrations of £69.8m and helped the club comply with PSR for 2023-24.
Newcastle chief executive Darren Eales said in a statement accompanying the results: “We are committed to sustainable success and we have started 2025 in a strong position. Our progress has been supported by diligent work on and off the pitch. Returning to the Champions League for the first time in more than 20 years was hugely memorable for everyone connected with the club, and it has clear upside financially as we continue to grow.
“We continue to make significant strides with our commercial deals and matchday offerings as we strengthen the foundations of the long-term project here at Newcastle United.”
