Newcastle United outperformed the rest of the Premier League in one financial area, according to the most recent analysis.
The Magpies are presently racing to meet the top flight’s £105 million Profit and Sustainability benchmark by June 30th, when the three-year assessment window expires.
That has prompted the club to attempt quasi-swap deals, such as the unsuccessful signing of Everton’s Dominic Calvert-Lewin, which would have sent Yankuba Minteh in the opposite direction.
While the Saudi Public Investment Fund has not been able to spend as much as it would like, there has been significant investment in the transfer market.
They have received a good return on their investment. Eddie Howe’s side has qualified for the 2023-24 Champions League.
And, despite finishing in eighth place last season, PIF’s long-term objectives for the club are still far ahead of schedule.
In order to compete at the highest level, the Tynesiders must increase revenue. And the most recent numbers indicate how successful the PIF administration was in doing so throughout their tenure in the northeast.
Newcastle’s revenue growing faster than any other Premier League club
Deloitte published its Annual Review of Football Finance this week, which examines the economic picture of the game in the Premier League and beyond.
In the report, the Big Four accounting company revealed statistics that indicated Newcastle’s revenue increased by an incredible 39% between 2021-22 and 2022-23, the final year for which financial data is accessible.
That increase was by far the greatest of any Premier League club, with the exception of those promoted from the Championship, whose revenues are a fraction of those in the top division.
Arsenal came in second with 26%.
The Magpies earned £180 million in 2021-22, a season during which Mike Ashley relinquished control of the club to the Public Investment Fund.
In 2022-23, however, they earned £250 million. When they produce their books for 2023-24, that number will be significantly more than £300 million.
Amanda Staveley’s long-term plan pays off
Amanda Staveley, the face of the Newcastle acquisition in 2021 and now a director at St James’ Park, has previously stated that the club has outperformed expectations following PIF’s investment.
Newcastle has completed one stage well ahead of schedule: Champions League qualification, which will result in new record levels of turnover.
However, Staveley, Mehrdad Ghodoussi, and Yasir Al-Rumayyan’s general strategy remains focused on the long term.
Newcastle’s rise will be slower than Man City’s because to PSR.
However, there are hints that the tide is moving in that regard, with Man United co-owner Sir Jim Ratcliffe becoming the latest to speak out against the PSR system’s flaws.
However, while the club may have PSR challenges in the short term, the evidence we have seen over the last three years indicates that Newcastle’s financial trend is overwhelmingly good.
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