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Newcastle director Amanda Staveley (file pic). Alamy Stock Photo

Newcastle owners pumped £167.9million into club

Former chairman Mike Ashley was owed £106.9million.

NEWCASTLE’S NEW owners have reported a reduced loss after tax of £12.2million and have pumped in £167.9m since their arrival, the club’s latest financial statement has revealed.

Figures for the 11 months to 30 June 2021, during which Mike Ashley was still at the helm, show overall turnover fell by £12.4m to £140.2m with match income slashed by 99% to just £0.2m due to the absence of crowds at St James’ Park under Covid-19 restrictions.

Media revenue increased by £13.2m to £119.3m, and the club’s wages to turnover ratio fell from 79.4% to 76.2%, although that was in part due to the fact that the previous accounting period covered 13 months.

The loss after tax represents a drop of £10.3m on the previous period.

Amanda Staveley’s 80% Saudi-backed consortium completed its takeover in October last year and has since injected almost £168m in equity, partly in settlement of an outstanding interest-free loan owed to Ashley’s St James Holdings Limited — the figures revealed the former owner was due £106.9m — and also to fund signings.

Midfielder Joe Willock arrived in a £25m move from Arsenal in August as former head coach Steve Bruce’s only summer signing, and the current regime sanctioned a £90m-plus spending spree on Kieran Trippier, Chris Wood, Dan Burn and Bruno Guimaraes, as well as loan acquisition Matt Targett, in an ultimately successful bid to stave off relegation.

The report, signed by Staveley, said: “Since acquisition, the new owners have injected equity funding totalling £167.9m into the company, partly in settlement of the outstanding loan owed to St James Holdings Limited and partly in cash, the latter of which enabled significant investment into the playing squad in the January 2022 transfer window, reflected in the net spend disclosure below.

“On 20 October 2021, Steve Bruce left his position as head coach by mutual consent and on 8 November 2021, the club announced the appointment of Eddie Howe as his replacement. Subsequent changes to the backroom staff followed on 16 November 2021.

“After the period end, the group contracted for the purchase and sale of a number of players. The net cost of these transfers, excluding any contingent fees, was £112m.”

The consortium, which comprises Saudi Arabia’s Public Investment Fund, Staveley’s PCP Capital Partners and RB Sports and Media, is currently awaiting the outcome of an HMRC civil investigation after a criminal probe into allegations of underpayment of tax and national insurance was closed.

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