The Deloitte & Touche Report has been issued for season 2006 -2007 and it has some eye-openers for Newcastle fans.
Mike Ashley – he should be dismayed with wage bill
In the season under review (2006-2007), the Newcastle wage bill was the 5th highest in the Premier League. behind those only of Chelsea, Man United, Arsenal and Liverpool, in that order.
However it seems that the top 4 teams actually got some value from their players’ high wages, because they finished in the top 4 in the Premier league in the order of Man United, Chelsea, Liverpool and Arsenal.
Newcastle however, even though 5th in the total wage bill, finished in 13th position in the Premier League with 43 points, a full 25 points behind 4th placed Arsenal.
That was both our worst points total ever, and lowest position ever in the Premier League – not good and Glenn Roeder paid the price for a poor season.
We equaled that points total this season, while finishing in 12th position. 🙁
You cannot blame Mike Ashley for wanting to reduce that wage bill, because he’s obviously not getting value for money from his players.
Note that Mike Ashley was not in charge of the club for the season under review (2006-2007), but our wage bill went up Â£10M for last season, and we improved to 12th place in the league, still on 43 points – again not good. 🙁
In 2006-07 Premier League wages costs rose overall by 13% – which were just marginally ahead of an average 11% rise in revenue (or turnover), to Â£969M. Those revenues are almost certain to have broken the Â£1B barrier in the season just finished.
Clubs paid an average of Â£48.5m in wages, with Chelsea having the biggest wage costs at Â£133M and Watford the smallest at Â£17.7M. That means Chelsea’s wage bill was more than seven times that of Watford.
Newcastle’s wage costs were Â£62.5M and that was a 20% rise on the previous season. Since we are told the wage costs this season just completed grew by Â£10M, we have to believe our wage bill for last season was around Â£72.5M.
Here are the wage costs for the Premier Clubs, with the positions they finished in the PL for 2006-2007.
Club Wage League Wage Change Rank Pos Costs Â£M Chelsea 1 2 132.8 17% Man Utd 2 1 92.3 8% Arsenal 3 4 89.7 8% Liverpool 4 3 77.5 13% Newcastle 5 13 62.5 20% Prem Lge avg 5.5 10.5 48.5 13% West Ham 6 15 44.2 41% Tottenham 7 5 43.8 8% Aston Villa 8 11 43.2 13% Everton 9 6 38.4 4% Middlesbro 10 12 38.3 n/a Portsmouth 11 9 36.9 49% Blackburn 12 10 36.7 10% Man City 13 14 36.4 6% Fulham 14 16 35,2 17% Charlton 15 19 34.3 0% Bolton 16 7 30.7 8% Reading 17 8 29.8 109% Wigan 18 17 27.5 34% Sheffield Utd 19 18 22.4 48% Watford 20 20 17.6 76%
Notice the big increase in wages for the teams who were promoted to the PL, yet they were still at the bottom of the wage table, and Watford and Sheffield United were still relegated.
Only eight Premier League clubs showed operating profits for the season, namely Manchester United, Arsenal, Liverpool, Tottenham, Newcastle, Reading, Sheffield United and Watford. So at least we were still able to make a profit, even though the wage costs were so high.
Now that Newcastle United is a privately owned company, it’s unlikely the club will publish their operating results in the future.
However, this brief look at Newcastle’s finances does give us an interesting look into why Mike Ashley and the board want to reduce the wage costs at the club.