Losses at Newcastle United FC widened after a Saudi Arabia-controlled consortium took control of the English Premier League football club and boosted spending on star players.
(Bloomberg) — Losses at Newcastle United FC widened after a Saudi Arabia-controlled consortium took control of the English Premier League football club and boosted spending on star players.Â
Results published on Friday offer the first glimpse into the financials of the club following its £305 million ($377 million) sale to Saudi Arabia’s Public Investment Fund in October 2021.Â
Newcastle United reported losses after tax of £70.7 million for the 12 months through June 2022, compared with losses of £12.2 million during a Covid-19 impacted season the previous year. Revenue rose 28.4% to £180 million.
The Saudi-led consortium, which includes Amanda Staveley’s PCP Capital Partners and Jamie Reuben’s RB Sports Media, took over Newcastle United from British businessman Mike Ashley when the club was languishing near the bottom of the Premier League.
It finished 2021/22 season in 11th place after a managerial change and the recruitment of a raft of new players. It’s now challenging for a top four place that would bring entry into the lucrative UEFA Champions League competition in Europe.
Newcastle United’s owners spent about £200 million during their first year in charge, led by the signing of Brazilian midfielder Bruno Guimaraes for £40 million.
The club’s staff costs to revenue ratio—seen as important by football regulators who want to avert perpetual loss-making— rose to 94.6% for the year ended June 30, 2022. UEFA intends to punish clubs that don’t bring this ratio down to 70% or less.
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