'Significant strides' - Newcastle United official document lays bare Premier League PSR situation

PSR, compliance and spending. When it comes to Premier League football, we hear more about the finances these days than the actual football.

But, as we all know, the two are intrinsically linked, with revenues and balance sheets impacting what can actually be achieved in terms of player trading and on the pitch results. It’s always kind of been that way, but never more so in focus than today, especially with Newcastle United.

Often dubbed by the uneducated, ‘the richest football club in the world’, Newcastle have been hampered by their inability to spend in the last three transfer windows, and that has brought raised eyebrows across the footballing world. Not a case of all the gear, no idea, more all the petrodollars, but no capacity to spend them!

So, when Newcastle United decide to drop their accounts - which can be found here in full - it’s a massive thing. And below is a rundown of the highlights, and lowlights, if any, of Newcastle United Limited’s (Newcastle United) financial results for the 12 months ended 30 June 2024.

Did Newcastle United make a profit in 2023-24?

In short, no. They didn’t. But, it was a lot closer to a profit this time than it was in the previous two years. And that really matters, particularly when it comes to PSR calculations.

Newcastle United’s loss after tax was £11.1million.

That is a big difference from 2022-23, which saw the club return a loss of £71.8million.

This change is largely due to increased commercial revenues and Champions League involvement, which accounted for a £29.8million uplift in revenues.

Significant players sales - rather than just incomings - also had a major impact on the club’s profit margins, with the club announcing they made £69.8million through the sales of Allan Saint-Maximin, Yankuba Minteh and Elliot Anderson.

PSR cycles are three years, and when a small loss dropped off this one - from 2020-21 - it meant the Magpies had to tighten their belts for the year ending 2023-24, in order to account for the major spends - and losses - in 2021-22 and 2022-23.

What is Newcastle United’s commercial revenue - and did it go up in 2023-24?

Yes, it went up. Commercial revenue is up 90%, while matchday is also up 32%. Overall there is an increase of 28% in revenue.

Revenue increased from £250.3m in 2022-23 to £320.3million for this financing period.

This still falls some way short of the ‘big six’ but the Magpies are closing the gap to those above, and widening to those below, which incredible growth year-on-year. And this is before the Adidas deal and Stack revenues are accounted for.

The official release by the club states: “Newcastle United Limited (Newcastle United) has filed its financial results for the 12 months ended 30 June 2024, reflecting a 28% increase in overall revenue.

“This strong financial performance reflects continued progress on and off the pitch during the financial year, including a return to the UEFA Champions League.

“These figures represent a substantial improvement on the previous two financial years, which had been characterised by significant investment into the squad.

“The improved result was driven mainly by revenue growth from Newcastle United's participation in the Champions League and profits from transfer dealings in line with Premier League profit and sustainability rules (PSR).

“Newcastle United increased its latest reported revenue to £320.3million (from £250.3million in 2022/23), reflecting 90% and 32% increases in commercial and matchday revenues respectively.

“Since the end of the accounting period, the ownership group led by PIF has continued to invest capital into the club to improve the financial position of the business. This continued investment is consistent with the shareholders' approach of long-term, patient investment.”

CEO Darren Eales on the financial results

Darren Eales, Chief Executive Officer of Newcastle United, said: “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 grew our revenues by 28% in the twelve months to 30 June 2024, with an increase in matchday revenue as well as significantly improved sponsorship deals and a sharper focus on everything we are doing across the club.

“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."

Are Newcastle United PSR compliant?

Really, we don’t know 100%, but the mood music around the club is that they are compliant for the period ending in June 2025.

So, fingers crossed, there will be no need for any fire sales, like what happened in June 2024 to make the accounts good.

What is in no doubt is, they were compliant for the period ending in June 2024.