Newcastle United, a top-tier Premier League team, has made a triumphant return to the UEFA Champions League competition after nearly two decades. This return has not only reinvigorated the team's competitive spirit but also significantly boosted its financial performance for the 2023-24 season.

The Tyneside club reported overall revenues of £320.3 million ($389.3 million) during the 2023-24 season, marking a substantial 28% year-on-year increase from £250.3 million in 2022-23.

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This surge can be attributed to several factors including their participation in the lucrative pan-European UEFA Champions League competition and strategic commercial deals that have been put into place.

Revenue breakdown

The financial performance of Newcastle United in the 2023-24 season was significantly boosted by increases across various revenue sectors. Matchday income saw a substantial increase of 32%, reaching £50.1 million, largely attributed to three home games in the Champions League. Media rights income also contributed significantly, totaling around £183.8 million, which includes distributions from UEFA. Furthermore, commercial revenue experienced an enormous rise of 90%, amounting to £83.6 million, further strengthening the club's financial position.

One of the main commercial deals that turbo-charged Newcastle's revenue was their front-of-shirt sponsorship with Saudi Arabian sport and events firm Sela (a PIF portfolio company). This deal was reportedly worth an annual sum of £25 million - a significant leap from their previous sponsorship deal with Fun88 valued at just £6.5m per season according GlobalData Sport (GDS).

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Additionally, a new kit supply deal with German sportswear giant Adidas was announced last season which is expected to further boost revenues starting from 2024-25 onwards.

Improved financial health despite losses

Despite posting a post-tax loss of £11.1 million for the 2023-24 season, Newcastle's financial health has shown significant improvement compared to a loss of £71.8 million in 2022-23.

This is well within the Premier League profit and sustainability rules that allow teams to lose up to £105 million over a three-season period - a threshold no club breached in 2023-24. The total operating expenses for Newcastle in 2023-24 came to £291.5 million, up by 28% from the previous year. The club attributed this rise primarily to an increase in first-team squad costs.

Despite these increased expenses, Darren Eales, chief executive at Newcastle, expressed optimism about the club's future.

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Darren Eales, chief executive at Newcastle, said:

“We are committed to sustainable success and we have started 2025 in a strong position.
"Our progress has been supported by diligent work on and off the pitch. Returning to the Champions League for the first time in more than 20 years was hugely memorable for everyone connected with the club, and it has clear upside financially as we continue to grow.”

Newcastle United's return to Champions League competition has had a profound impact on its financial performance during the 2023-24 season. With strategic commercial partnerships and diligent work both on and off pitch, it seems set for sustainable success moving forward.

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