Newcastle’s new owners have injected £167.9million since joining, the club’s latest financial statement has revealed.
Figures for the 11 months to June 30, 2021, in which Mike Ashley was still at the helm, show turnover fell from £12.4m to £140.2m with Match revenue slashed by 99% to just £0.2m due to no crowds at St James’ Park under Covid-19 restrictions.
Media revenue rose from £13.2m to £119.3m and the club’s wage-to-revenue ratio fell from 79.4% to 76.2%, although that was partly due to the fact that the previous accounting period covered 13 months. An after-tax loss of £12.2m represents a decrease of £10.3m from the prior period.
Amanda Staveley’s 80% Saudi-backed consortium completed its takeover in October last year and injected nearly £168m of equity, partly in settlement of an interest-free loan owed to Ashley’s St James Holdings Limited – figures revealed the previous owner was owed £106.9million – and also to fund signings.
A spending spree of more than £90million has been punished for Kieran Trippier, Chris Wood, Dan Burn and Bruno Guimarães, as well as loan acquisition Matt Targett, in a successful bid to avoid relegation.
The report, signed by Staveley, said: “Since the acquisition, the new owners have injected equity totaling £167.9 million into the company, partly in settlement of the outstanding loan due to St James Holdings Limited and partly in cash, the latter of which enabled a significant investment in the playing squad during the January 2022 transfer window, reflected in the net spend disclosure below…
After the end of the period, the group contracted for the purchase and sale of a number of players. The net cost of these transfers, excluding contingent fees, was £112m.
The consortium includes Saudi Arabia’s Public Investment Fund, Staveley’s PCP Capital Partners and the Reuben brothers. RB Sports and Media.