Newcastle United are set for ‘substantial losses’ in their 2022/23 accounts after growing their wage bill since their takeover.
That is the view of finance expert Kieran Maguire, who spoke exclusively to Football Insider about the projected financial results at St James’ Park.
Newcastle United had one of the highest wage-to-turnover percentages in the Premier League in 2021/22, with their £171million wage bill equating to 95 per cent of turnover.
The Tyneside club are expected to announce a higher wage bill in 2022/23 after investment in the first-team squad following the club’s takeover.
Maguire predicts that Newcastle’s continued investment and increase in wages will result in the club announcing financial losses in their upcoming accounts.
“If you take a look at Newcastle’s accounts they did indicate that there was a significant investment when the new owners initially came in,” Maguire told Football Insider’s Sean Fisher.
“That was reflected in the spending over the January 2022 transfer window.
“Some of those players will now have been paid 12 months’ worth of wages instead of six months in 2022/23.
“So I predict that the 2022/23 accounts will show substantial losses.
“But the good news is that if you look at the three elements of football club income they will grow.
“Broadcast income will be higher because the club is higher up in the Premier League table, and commercial income in particular is set for a spectacular rise.“