Good news for Newcastle fans and Mike Ashley today, after Forbes magazine released their annual ranking of the world’s richest football clubs.
Whereas Deloitte Touch every February bring out their ranking of the teams based on annual revenues, and Newcastle were recently ranked 20th, this is based on Forbes’ estimate of how much money the club would cost, if somebody wanted to buy the club.
It’s just a coincidence that Newcastle were ranked 20th in both lists, but of course annual revenues is often a good measure as to how much a company is worth (plus what their profits are).
This new list is basically the perceived value of the football club.
Newcastle are listed as 20th, just one spot behind Manchester City, and are said to cost $198M.
As today’s exchange rate of 1.53, that translates to about £129M.
But Newcastle will be worth a lot more than that in one year’s time, especially if we do reasonably well in the Premiership next season.
Newcastle are the 7th England team ranked, with Manchester United being number one at $1.835B (£1.19B) and Real Madrid second at $1.323B ( £865M), and Arsenal 3rd at $1.181B (£772M).
The English teams above Newcastle are Manchester United, Arsenal, Liverpool, Chelsea, Tottenham Hotspur and Manchester City, in that order.
That’s strange, because apart from City and Spurs, those other sides actually win trophies every year.
Well, we suppose that’s what we did this season, winning the English second division.
It also shows the draw the Tyneside club has, when they easily out-rank 14 English clubs who are in the league above them, not to mention all the European clubs that Newcastle are worth much more than.
Newcastle’s debt is listed at just 8% of their value which is good.
Note that Manchester United, Real Madrid, Arsenal and Liverpool have debts of 56%, 54%, 41% and 47% of thier value.
And here’s the Forbes article that ranked the teams, and since Forbes is American they refer to the game as soccer, although nobody else does.
And this is what the Forbes article says about Newcastle United:
In Newcastle, owner Michael Ashley has been trying to get out but has been unable to find a buyer.
Newcastle was relegated from the Premiership and is now playing in the second-flight Coca-Cola Football League Championship, though it will be back in the top-flight for the 2010-11 season.
As a result, the club will likely see revenue decline this year much more than the 14% drop it experienced last year. The club’s $198 million valuation marks the first time that the 20th ranked team on our list has been worth less than $200 million since 2007.
So the next time people ask what makes Newcastle United a massive club, point them to this list. 😀