Newcastle United 'improve cash flow position' as owners' injection of funds explained

Newcastle United have 'improved their cash flow position' over the years thanks to equity injections from the club's owners.

That is according to football finance expert Kieran Maguire after a Companies House update previously revealed that Newcastle's backers had pumped a further £37m into the club following the sale of just a single share earlier this year. The club made a series of similar filings between November, 2021 and August, 2023.

One particular cash injection in 2022 was worth as much as £70.4m following a wide range of investments, including new players; a training ground upgrade; improvements to St James' Park; and the hiring of a number of senior executives to build out the commercial side of the club. CEO Darren Eales said at the time that the 'additional investment further enables us to continue implementing the business plan'.

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It is important to stress that Newcastle remain restricted by PSR rules, which have limited spending on transfers in the last 18 months in particular, but the club stated back in January that the ownership group have at least 'injected additional capital to improve the financial position of the business' as Maguire explained.

"Newcastle United have improved their cash flow position, but not through sponsorship arrangements," he told the Price of Football. "They have instead put money in via the owners in the form of new shares so that has given them cash.

"Let's say you sign a player for £50m. Normally, you pay in three instalments so you might pay £20m, £20m followed by £10m. If Newcastle's owners put a load of cash in, they could go in and say, 'Well, we can give you £50m up front' and they're more likely to get the selling club to agree to the deal. That would be a benefit for those clubs even though not all of the money from owners does count towards PSR or FFP calculations."

Newcastle have tended to spread transfer fees out over a period of time, as most clubs do, but the Magpies were able to pay a substantial sum up front to help convince Everton to sell Anthony Gordon in the mid-season window back in 2023.