Newcastle United has released its financial projections for the 2024/25 season, highlighting a transformative year for the club. This season was marked by a historic achievement, as Newcastle secured its first major trophy in 70 years, triumphing over Liverpool in the Carabao Cup final.
Financial Highlights and Performance Overview
In addition to its cup success, Newcastle qualified for the Champions League for the second time in three years after finishing fifth in the Premier League. The club also advanced to the fifth round of the FA Cup but was eliminated by Brighton and Hove Albion.
Investment and Growth under New Ownership
The financial report reflects considerable progress since the takeover by a consortium led by Saudi Arabia’s Public Investment Fund (PIF) in October 2021. This marks the third complete set of accounts under the new ownership, which has made significant investments in the club.
- Newcastle United’s league finishes over the past three seasons:
- Fourth in 2021/22
- Seventh in 2022/23
- Fifth in 2023/24
- Amanda Staveley resigned from the board in July 2024, increasing PIF’s stake to 85%.
- Jamie Reuben’s RB Sports & Media Ltd now holds 15%.
PIF indicated that this restructuring is part of a long-term vision to enhance the club’s competitiveness in both domestic and European leagues.
Financial Results
Newcastle reported a pre-tax profit of £35 million, a significant recovery from an £11 million loss the previous year. This profit was largely attributed to exceptional asset sales, especially concerning St James’ Park, amounting to a £133 million gain. Excluding these sales, the club faced a substantial loss of £98 million.
- Revenue insights:
- Overall revenue rose by £15 million, or 5%, reaching a record £335 million.
- Operating expenses surged by £56 million, or 14%, totaling £445 million.
- Player sales profit diminished by £50 million to £20 million, a 72% decrease.
- Net interest payable decreased from £12 million to £9 million.
Despite no income from UEFA TV rights during the reported period, Newcastle’s revenue growth was significant. This growth was predominantly due to a £37 million, or 42%, increase in commercial revenue, which rose to £123 million. Matchday earnings also saw a slight increase, rising 3% to £51.6 million.
Cost Management and Expense Overview
Newcastle has experienced rising costs as the new ownership continues investment in player acquisitions and infrastructure improvements, aimed at establishing a competitive edge. Key expense statistics include:
- Wages rose by 11% from £219 million to £243 million.
- Player amortization slightly increased by £3 million, totaling £100 million.
- Other expenses surged by 38%, from £68 million to £93 million.
- Depreciation costs rose significantly, from £5 million to £8 million.
Despite these increases, Newcastle achieved the highest pre-tax profit in the Premier League last season, edging out Aston Villa by £18 million. This indicates the club’s solid financial footing amidst a backdrop of investment and growth.
