Newcastle United released their first financial figures since the Amanda Staveley-led takeover and within the documents was a quote that will have fans very excited.
The released statement confirmed that Newcastle made a loss of over £70million in their first year under the PIF, but this was down mostly to player spending. The Magpies have spent over £200million on player talent since the takeover, transforming the team from relegation favourites to Champions League hopefuls in just over a year.
Despite posting a loss, the board have vowed to keep on spending. As the old adage goes ‘You’ve got to spend money to make money’, or as the club put it in their statement: “Our long-term objective remains unchanged: to improve the sporting performances of the club, with a view to consequently improving the financial performance of the Group.”
Newcastle United will be sporting a new shirt sponsor next season
The new owners have made giant strides to increase the revenue the club generates with many sponsorship deals being worked on behind the scenes. We’ve already seen the likes of the Noon deal for the sleeve sponsorship which eclipsed the deal we had in place for our main shirt sponsor.
We are also awaiting details on who our main shirt sponsor will be next season following the club’s decision to terminate the current deal with FUN88 early. Many are suspecting that it will be another Saudi-based company, most likely SAUDIA or Riyadh Airlines.
More lucrative deals are on the horizon which means so are big transfers
Peter Silverstone who brokered many a lucrative deal for Arsenal was brought in by the club to do the same at Newcastle. The better these deals are, the bigger the buffer we can create in terms of Financial Fair Play which means the more we can pay in transfer fees and player’s wages.
The whole thing is a cycle, but it has to build over time, it can’t just be done overnight like when Chelsea and Manchester City were taken over back in the day.
The owners have once again outlined their desire to succeed and their willingness to spend in order to facilitate that.
Good times are ahead.
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