The club that get through this afternoon’s Coca-Cola Championship play-off final between Cardiff City and Blackpool are said to be getting £90M in new revenues.
Mike Ashley – club should be in black next season
Well, that’s according to Deloitte analysts, and Newcastle should be able to put their financial house in good order in a few years.
Newcastle have lost £70M in their last two seasons and owe owner Mike Ashley at least £111M, but the good news is the club is paying no interest on that loan, and apparently Mike doesn’t want paid off any time soon. Good.
So it does allow Newcastle to limit their wage bill to say £50M, down from the £74M it was in our relegation season, and the club should now be able to make a profit, and start to pay off some of their debts.
It will also allow some transfer money to be made available, although we doubt there will be too much of that available this summer.
The consultant company Deloitte says the income from TV, sponsorship, gate receipts – and parachute payments to clubs who are relegated from the Premier League – has risen by 50% compared to last year. That’s an enormous increase.
The new Premier League television deal is mainly responsible for that, as the PL is getting more and more popular around the world, and certainly is becoming quite popular here in the US, with youngsters now able to watch world-class football (soccer).
Paul Rawnsley, director of the sports business group at Deloitte, said today:
“The Championship play-off final winners will benefit from at least £40M of additional revenue in 2010/2011, the vast majority of this coming from television income and the rest from higher gate receipts and increased commercial income.”
“In addition, even if a club is relegated after one year in the Premier League, parachute payments may be received over the following four seasons of up to £48M.”
“In financial terms, this match offers the winning club the most substantial prize in world football and the value is now even greater as a result of the Premier League’s increased revenues from international broadcast rights and the extended parachute payments over four seasons.”
“It is a prize which provides the opportunity for sound investment and strengthening the foundations of a club for years to come.”
When Deloitte releases their richest football club lists in February, Newcastle were 20th last February, the club may not make the top 20 next February, because Newcastle will have been in the Championship during the time the revenues are measured.
But the year after that, in February 2012, Newcastle should be one of the richest football clubs in the world, with revenues well over £100M.
There’s no doubt in our minds that the famous Newcastle United club are back in the ascendancy – no doubt at all.