Newcastle United post healthy financial results despite taking hit in pandemic – originally posted on Sportslens.com
Newcastle United posted their 2019/20 financial results and boasted better numbers than the majority of Premier League clubs despite the disruption from Covid-19, says Swiss Ramble on Twitter.
The Magpies posted a £26m loss (£23m after tax), considerably down from their £41m pre-tax profit from the previous year, but they did a lot better than most sides.
United’s revenue fell to £152.6m, which was down 14% (£23.8m) from 2018/19. Expenses went up by £45m (28%), but the profit on player sales rose by £2m to £26m.
Swiss Ramble notes that Newcastle’s suffered a big revenue loss from broadcasting, directly affected by the pandemic – the Toon Army lost £18m (14%) from the previous year’s total of £124m.
Matchday revenue also slumped unsurprisingly. They posted £24.8m in 2018/19 and £17.4m in 2019/20 – a loss of £7.4m (30%). Swiss Ramble noted that Commercial rose £1.4m (5%) from £27.7m to £29.1m, including £1.2m from the government job retention scheme.
It’s not good for Newcastle’s spending to rise with revenue going down, so it’s and that their wage bill increased £24m (25%) to £121m. Player amortisation rose £9m (23%) to £48m and a £11m impairment charge was also booked. Other expenses rose £0.5m (2%) to £23.8m.
Swiss Ramble closed that Everton (£140m), Manchester City (£125m) and Aston Villa (£99) posted big losses from the last financial year, so Newcastle’s £26m isn’t as bad as it could have been. The Magpies could have made an extra £14m and £12.7m had it not been for the pandemic and 13th month in accounts, so the net impact was £27.1m – underlying profit was £1m.
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Author:Crippy Cooke