Newcastle United announce final financial cost due to Covid impact
It has now been revealed what the financial cost has been to Newcastle United due to the Covid pandemic.
This has been made public due to the release of the final set of Newcastle United accounts whilst Mike Ashley was still owning NUFC for the entirety of that period.
These latest accounts released by the club, are for the eleven months leading up to 30 June 2021 (this takes Newcastle United back to their usual end of accounts date, as the previous ones were for 13 months and went up to 31 July 2020).
What Covid meant for Newcastle United in a financial sense, was that there was a major drop in income – mainly due to fans not allowed into matches, however, in other ways though there were savings made on costs.
As these new Newcastle United accounts state:
‘Operating expenses for the 11 month period were £123.3m, down £24.7m on the 13 months £148.0m, reflecting the reduction in length of the accounting period, together with cost savings of behind closed doors matches and a fall in commercial activity.’
Billionaire Mike Ashley was also the only Premier League owner to use the government’s furlough scheme in both the 2019/20 AND 2020/21 seasons to pay many of his n0n-playing staff, including the entire recruitment team at one point.
These new accounts showing that in the 11 months up to 30 June 2021, Mike Ashley claimed £900,000 via the government’s CJRS Grant (Furlough) scheme. The previous season (13 months up to 31 July 2020) Ashley claiming £1,152,000 in Furlough cash.
These new Newcastle United accounts also show a final figure put on ‘Covid 19 net impact’ to the club, with that net cost put at £25.9m for the 11 months up to 30 June 2021, which compares to £14.4m in the previous accounts for the 13 months up to 31 July 2020.
That giving a final total of £40.3m for the two years / seasons during the Covid crisis.
Football finance expert Kieran Maguire has pointed out the massive difference between the £40m or so Newcastle United are reporting as the net loss due to the past two Covid impacted seasons, with the Everton claims saying £170m was the cost for them over the two years. The Goodison club in all kinds of trouble with their finances and Financial Fair Play due to wasting hundreds of millions on poor signings in recent seasons and their spending coming under scrutiny, the £170m claims provoking much hilarity when various industry specialists such as Kieran Maguire have reacted to the Everton claims.
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