Huw Jenkins: Newport County need strong financial control

The Exiles reported a loss of £913,306 for the last full financial year as a Trust-owned club before the takeover by Jenkins.

The figures for the year ending June 30, 2023 followed the loss of £1.2million, with liabilities of just shy of £400,000, reported in the previous accounts.

The latest accounts do not include this season's lucrative FA Cup run - £213,000 in prize money and £140,000 in fees for television coverage plus gate receipts from the Manchester United game.

The Supporters Trust laid bare the club’s financial plight when stressing the need for investment and ultimately the change of ownership model.

Former Swansea chairman Jenkins was given the green light for a takeover in September by Trust members and the EFL gave the go-ahead in January.

“Obviously, it was before my time at the club, so it would be unfair to comment in too much detail on the results – and the reason for such a loss,” wrote Jenkins in an update to supporters.

“What is evident, however, is that there needs to be serious changes to the way the club operates.

“Coming on the back of a previous loss of £1.2million, a club of our size cannot afford to lose over £2million in two years. It is simply unsustainable.

County owner Huw Jenkins (Image: Huw Evans Agency)

“Supporters of this proud football club have gone through a period where the club folded and had to return from exile.

“The journey back to the Football League was a long and arduous one – and I’m sure it was an experience nobody sporting amber and black wants to experience again.

“The football club is the heartbeat of the community, and it is vitally important we not only protect it but make it stronger on and off the pitch.

“We need to change the mentality, culture and processes within the club. We need to adopt a more business-like approach and attitude if we want to protect the club’s future.”

County state that turnover went up marginally - £3.4million from £3.28million – but that operating costs are greater than turnover.

A statement said that was “due to a number of factors, including a 39 per cent increase in matchday staging fees and the overall costs of playing at Rodney Parade”.

PACKED: Rodney Parade when Newport County hosted Manchester United (Image: Huw Evans Agency)

A one-year lease was agreed for the current campaign and Jenkins needs to thrash out a new agreement – a rolling 10-year lease under new EFL rules – with the Dragons, who now own the ground after completing a takeover from the Welsh Rugby Union.

“Apart from the playing budget, our biggest expenditure is facilitating the fees associated with playing at Rodney Parade,” said Jenkins.

“While we are grateful to the Dragons for accommodating us at their home, the current costs are unsustainable based on our turnover.

“We are currently discussing a new 10-year lease with the Dragons which will hopefully place us in a better financial position moving forward.

“We are both in the same position where we need each other and 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.”

“A lot of work has been going on in the background to improve our financial position,” he continued.

“A lot of aged debt has been cleared in the last two months and we are on a much better financial position; but strong financial control is still essential to keep the football club on the right path going forward.”

Jenkins stressed the need to substantially increase commercial revenue and, as Dragons chairman David Buttress has done in the past, urged Newport City County to show their support.

He said: “Uniquely positioned where it is, Rodney Parade is also vital in maintaining and increasing footfall in the city centre, especially for those retail businesses operating there, so we will also be looking to work with the local council in ensuring sport in Newport has a bright future. Any help would be appreciated!

“The need to improve all sporting facilities for everyone in the Newport area is a massive challenge to both Dragons and Newport County as there seems to have been a total lack of investment in these facilities for many years.

“Improved sporting facilities would help lift the whole area and encourage staff and players to join our clubs, while also providing new pride and ambition for everyone in the Newport area.”