On Thursday, Jan. 11, Newcastle United recorded a pre-tax deficit of £73.4 million ($93.6 million) for the fiscal year ending June 30, 2023. Despite these losses, the club is optimistic that it will remain within the Premier League’s profit and sustainability guidelines (PSR) next summer, even if it means selling one of their three greatest players: Sven Botman, Bruno Guimaraes, or Alexander Isak.
The club’s total revenue climbed by 39% to £250.3 million, owing primarily to commercial revenue. big spending, particularly on player transfers, has resulted in big losses. Newcastle has spent a total of £124 million on player acquisitions since June.
Saudi Arabia’s Public Investment Fund (PIF), the club’s principal owner, has played a critical role in its financing and financial presence.
Additionally, Newcastle reported by Newcastle that commercial revenue of £6.71 million from businesses associated with PIF, including signing deals with Saudi brands to sponsor the team appearing on their kits and stadium ads. This financial backing has raised concerns among other Premier League clubs, leading to stricter regulations on associated-party transactions.
Newcastle’s chief executive Said?
Despite the losses, Newcastle’s chief executive Darren Eales expressed confidence in the club’s compliance with PSR guidelines. However, that might come with the negative of having to sell some of the key players currently on the squad and even those acquired in recent transfer windows.
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Acknowledging that every player has a price in the PSR context if the club wants to avoid any serious trouble such as Everton did of late.
The club, led by Eales, has commissioned a feasibility study by leading architects, considering the stadium’s iconic city-center location. Eales emphasized the importance of St James’ Park, known as the ‘cathedral on the hill,’ to the club’s identity and is keen to maximize revenue while maintaining its current location, not ruling out an eventual move to a brand-new, built-from-the-ground venue.
Eddie Howe is reportedly interested in strengthening the squad, potentially through a loan deal for Manchester City midfielder Kalvin Phillips, but that feels more like a dream after listening to Eales rather than a viable acquisition for the next six months.
Eales’ comments suggest that significant player acquisitions this month are unlikely, the same as the sale of players because of the ongoing injury woes impacting Newcastle’s roster.
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