Newcastle United posted losses of £73.4million this tax year, meaning they may face a points deduction like Everton if that breaches financial rules.
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- Newcastle could be in breach of Premier League's PSR
- Incurred loss in the last financial year
- Could face points deduction like Everton
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WHAT HAPPENED?
The Magpies, who are backed by the Saudi Public Investment Fund (PIF), incurred a pre-tax loss of £73.4million ($93.6m) in the previous financial year, according to . While their revenue saw a rise of 39% to £250.3m, their expenditures were huge including money spent on transfers, which was close to £124m.
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WHAT HAS BEEN SAID
When asked if the club was in breach of Premier League's Profitability and Sustainability Rules (PSR) limit and could face a points deduction like Everton, club CEO Darren Eales told , "We’re compliant in the year we’re talking about here and our plans are always to be compliant going forwards. That is part of our business plan and part of our model."
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THE BIGGER PICTURE
The Premier League club have shown a cumulative loss of £144.1m in the last two seasons, although not all of their expenditures from that time will be considered in PSR calculation. Some of those expenditures include spending on the academy, the women's team, and club infrastructure.
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WHAT NEXT FOR NEWCASTLE UNITED?
Eddie Howe's side, who are on the back of three consecutive Premier League defeats, will be next seen in action on Saturday as they take on reigning champions Manchester City in a crucial league clash.