Newport County: League Two club report 'unsustainable' losses
- Published
Huw Jenkins spent 17 years with Swansea City before leaving the club in 2019
Newport County made a loss of nearly £1m before their takeover by former Swansea City chairman Huw Jenkins.
The figures for the financial year ending June 2023 take the League Two club's losses beyond £2m for the past two seasons.
Jenkins took control of Newport in January in a £500,000 deal.
He has called the losses "unsustainable" and shows "there need to be serious changes to the way the club operates".
Newport made a loss of £1.2m in the year ending June 2022.
Newport also owed £1.6m last summer, but Jenkins says some of that debt has now been cleared, adding that the Exiles "are in a much better financial position, but strong financial control is still essential to keep the football club on the right path".
In an update to supporters, external, Jenkins said it would be unfair to comment on the results and the reasons for the losses of £913,306 given it covered a period before his involvement.
He did, however, say the club's biggest expenditure surrounds the costs of playing at Rodney Parade.
Newport's turnover increased from £3.28m to £3.4m, but operating costs remained greater at £4.39m.
The club say one of the factors is a 39% increase in the costs of playing at the ground they share with regional rugby side Dragons.
While it is general matchday costs rather than lease fees that have increased, discussions over a new 10-year deal are ongoing with the current agreement expiring this summer.
"While we are grateful to the Dragons for accommodating us at their home, the current costs are unsustainable based on our turnover," said Jenkins, who took a 52% stake in the previously fan-owned club.
"We are both in the same position where we need each other and [need] to cut running costs at Rodney Parade to make it a sustainable venue for both codes. It is a big challenge that needs strong and committed control."
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