Deloitte have published their yearly list of the top 20 revenue-earning football clubs in the world, and for the first time in a long time Newcastle United are nowhere to be seen.
Of course that is hardly surprising, and as we reported last year at this time when Newcastle were 20th in the rankings, we said that Newcastle would be nowhere to be seen this year, after spending last season in the Championship.
In fact Derek LLambias estimated that Newcastle would be around 48th this year, and he seems fairly accurate, because that’s where Newcastle ended up this year.
That 20th position last year was based on Newcastle’s relegation season while still in the Premier League, and the side had regularly been in the top 20 in previous season, the highest place being 13th in 2006, when the club had revenues of £104M.
In the 2010 rankings when the club was 20th, Newcastle had total revenues of €101, and with today’s conversion rate that would be around £85M, which was still £19M short of what the club made in 2006. Of course back in 2006 the club was in European competition.
There are no major shocks at the top of the table this year, with the top 5 clubs Real Madrid, Barcelona, Manchester Untied, Bayern Munich and Arsenal all unchanged from the year before, with Real Madrid having revenues of €438.6M (£368M)
Don’t confuse the Deloitte ranking, based on revenue generated by each club, with the Forbes list, which in a couple of months time will come out with the value of each club – basically how much it would be to buy the football club. Newcastle just so happened to be in 20th position in that list last year too, and were valued at $198 – which is around £119M at today’s conversion rate.
We’re not sure what Newcastle’s revenues were last season in the Championship, but they couldn’t be much more than around £40M, if that – because Newcastle earned only around £5M from TV rights in the Championship, compared with about £38M they got for TV rights in the Premier League.
With the increase in gate receipts and TV monies coming this season, the rankings next February should see Newcastle close to that 20th position again.
This year Aston Villa hold the 20th position with revenues of around £91M, and of course in last year’s ranking Newcastle had £85M in revenues in that position.
But the club is being well run at least on the financial side, and this drop was fully expected because of relegation, , but the question now is how much the club can start to build the the revenues.
Certainly the club is getting back to almost full houses at St. James’ Park so that’s good, and of course the club will get the huge Premier League TV money this year too.
The revenues that are missing right now from Newcastle are those that can be made in European competition, so that has to be Newcastle’s next step – to get back into Europe.
But we have to think that within a couple of years, all being well, Newcastle will surpass to £100M revenue total.
Relegation of course would be another complete disaster on all fronts.
But things are looking up for Newcastle right now, if we can remain well positioned in the Premier League.