Newcastle United has been hit with a £3.2m tax demand from HM Revenue and Customs. The demand is related to a 'deliberate' failure to pay tax on transfers.

What happened?

Newcastle United owes £1.9m in tax and has been hit with a £1.25m penalty. The tax authority's investigation, known as Operation Loom, began in 2017.

Why it matters for Newcastle United

The investigation focused on an elaborate scheme to avoid paying income tax, VAT, and national insurance relating to player payments and agents' fees. Newcastle United, owned at the time by Mike Ashley, used 'sham' contracts that disguised the true recipients of cash.

What comes next?

The current owners of Newcastle United, Saudi Arabia's sovereign wealth fund, have been in charge since 2021. As of 29 Jun 2026, Newcastle United is 12th in the Premier League with 49 points from 38 games. | Category | Value | | --- | --- | | League standing | 12th | | Points | 49 | | Recent form | LWDWL | | Goals scored | 53 | | Goals conceded | 55 | | Goal difference | -2 | | Title race | 36 points behind leaders Arsenal | Newcastle United's current situation is a far cry from their tax troubles under Mike Ashley's ownership. The club's fans will be hoping for a resolution to the tax demand and a focus on the upcoming season.