Newcastle United Revenues Set To Increase Dramatically

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.

Comments welcome.

24 comments so far

  • supermacnumber9

    Feb 11, 2011 at 12:59 PM

    Comment #1

    so no chance of selling the club yet I suppose!

  • AndyMac

    Feb 11, 2011 at 1:00 PM

    Comment #2

    Just to add more misery to this stat, in 2003 when we had our first year of Champions League football the turnover was £93m just slightly ahead of Liverpool. Now eight years later we’re over £100m behind them.

  • AndyMac

    Feb 11, 2011 at 1:04 PM

    Comment #3

    Patsy says :

    “Obviously, I’ve done it for 10 years. For me, I know what he’s (Steve Kean) about. He has good ideas about the game. He’s a thinking man’s coach, and he’ll come up with a couple of strategies to win.”

    That’ll be two more than you then Patsy ?

  • supermacnumber9

    Feb 11, 2011 at 1:05 PM

    Comment #4

    Would not a good businessman invest for the future in this position? I’m not saying he is not a good businessman – he is after all a millionaire – but football does not follow the logic of business – in fact it follows no logic what so ever! Some get rich from it – most lose all their money – but really it’s a passion/hobby and if they don’t realse that then they will get (and deserve) a hammering.

  • GeordieGerman

    Feb 11, 2011 at 1:09 PM

    Comment #5

    Can imagine where we’d be under Shepherd and Hall.

  • AndyMac

    Feb 11, 2011 at 1:11 PM

    Comment #6

    Indeed it is unlikely that as owner of NUFC you’ll ever make massive profits but during the Hall/Shepherd years when we had £100m turnover we could quite easily have broken even while still buying the odd £10m player.

    We know this for a fact as most years the greedy bastads used to take millions from the club in dividends or share options.

    So yes it can be run profitably and still develop as a club providing its not saddled with debt from previous owners mismanagement.

  • supermacnumber9

    Feb 11, 2011 at 1:14 PM

    Comment #7

    we have been a top 4 club, we are now a top 10 club, it looks like in the next few years we will stabilise in the 5-9 bracket along with other well managed clubs (hope?) such as Liverpool, Spurs & Villa. After that the new rules will hinder the spending of City & Chelski so we should be building now to compete in the 3-9 bracket in 3-4 years time.
    meanwhile I’d love to see a cup (either) come here!

  • lesh

    Feb 11, 2011 at 1:19 PM

    Comment #8

    GeordieGerman // Feb 11, 2011 at 1:09 PM

    ‘Can imagine where we’d be under Shepherd and Hall’.

    The Blue Square Conference perhaps?

  • supermacnumber9

    Feb 11, 2011 at 1:19 PM

    Comment #9

    On reflection I think we are back where we belong – in the top 10. We have the makings of a very good team and a very good youth/junior structure. Providing we play entertaining football I will be happy (and relieved) for now. But please – could we not have just one little cup to cheer and kick start the drive upwards.

  • curmon

    Feb 11, 2011 at 1:43 PM

    Comment #10

    Being a privately held company the revenues can be anything that Ash and lam want them to be, especially as they have other companies to cross charge management fees etc.

    You should know all about this Ed, as IBM used to quote revenues for industry sectors to demonstrate their leadership position, however, if you added all the sector claims together they were far in excess of their total worldwide revenues.

  • curmon

    Feb 11, 2011 at 1:46 PM

    Comment #11

    I almosr forgot, I would like to see an analysis of operating profit as I am sure Ashley has a tidy profit from turning capital assets into revenue. ie selling players at a profit, Given, Bassong, Beye etc

  • stuckdownsouth

    Feb 11, 2011 at 2:16 PM

    Comment #12

    The good thing is that we no longer have the huge interest payments that we had under Fat Freddy.

    People who this Cashly has made money out of us are delusional, however I believe he will do one day when he sells. He has reduced the debt and the club will soon be self sufficient , all this points to a sale one day.

    The good thing is I believe that Ashley will continue to try and buy Tiote’s and Ben Arfa type players and build the p,suing staff up.

    The downside is we are a trading club and this means every season we will sell at least one star player/asset.

    I have slatted Cashley off many times but he is running us as a business now, it’s not the dream we all want, but it might be what we need.

  • stuckdownsouth

    Feb 11, 2011 at 2:19 PM

    Comment #13

    Build the playing staff up (sorry for the above typo)

  • chuck

    Feb 11, 2011 at 2:46 PM

    Comment #14

    Yes, the club as far as finances could be considered well run, due to the fact earnings for this season including the fee for Carroll are high.
    But is the club overall being run well ?
    Arsenal are a well run club, being able to buy players, earn high revenues, while paying off their new stadium and end up making a profit.
    To claim Liverpool are or have been well run is ridiculess, they have spent millions on players and ended up selling their best, need a new stadium and still need to improve, all of which will take money.
    We the NUFC fans have seen little in the way of spending and have been proven to be a selling club, with a top management group that are not exactly football people.
    In which case we can assume we will be nowhere near the top four or six anytime soon.
    I believe that management would like the club to be competitive but are not willing to spend in order to achieve success, hoping to do it on the cheap.
    Plus the fact every member of the squad has a price, no one is untouchable.
    Soh ! if you dont want to be dissapointed, dont look for any silverware in the near future and consider success a mid league spot, or even happy to be avoiding relegation.
    Which is still a distinct possibility.

  • Mr Books

    Feb 11, 2011 at 3:53 PM

    Comment #15

    curmon – Newcastle United Limited is still a UK limited company. It files group accounts at companies house. You can buy them if you want to. The 09-10 seasons accounts are due by end of March, and I will be getting them to have a look through.

    Its not operating profit you want to look at though, as that does not include the profit on player transfers. Its also important to understand what the accounts mean with profit on player transfers. Its not the difference between what was spent on players coming in and what was made on players going out.
    When a player is bought, his contract becomes an asset with a value of what they cost. The value of this asset is then reduced annually over the lifetime of the contract (most teams, including NUFC do this on a straight line basis – in other words if you buy a player for 6M on a 3 year contract, the value reduces by 2M each year until after 3 years he can leave on a free and you get nothing) which gives you the book value of the contract. The profit on player sales is the difference between the book value and the amount you get for the player. So in the 3yr 6M player example selling after 2 years for 4M would give a 2M profit on player transfers. Even if that was the only player sold and we spent say a theoretical 36M on players coming in.

  • The Entertainers

    Feb 11, 2011 at 5:15 PM

    Comment #16

    What does annoy me’ about Newcastle United at the moment is the comments from Pards stoppi g just short of telling all and sundry we’re a selling club with his “if we hadn’t of sold andy we couldn’t offer other contracts” comment!
    It adds pressure from crap journalists and invites doubt in players minds!
    Alan my dad always says of you’ve got nowt good to say then say nowt! Sometimes we don’t help ourselves !
    Even joey Barton who was just about to ink a contract stop and wants to know the direction we’re going! Idiots running the asylum !

  • stuckdownsouth

    Feb 11, 2011 at 5:31 PM

    Comment #17

    The Entertainers

    In fairness to Pards I think he is trying to be as honest with us as he is allowed to be.

    He gets called a lying c**t if he says we’re going to keep all our layers and he gets called an idiot if he states the obvious. Basically everybody at the club has a price, and as long as it’s as inflated as the price Liverpool paid for AC (and that money is re-invested) then that’s sensible. not sexy though!

  • AndyMac

    Feb 11, 2011 at 5:54 PM

    Comment #18

    Stuckdownsouth said:

    “He gets called a lying c**t if he says we’re going to keep all our layers and he gets called an idiot if he states the obvious.”

    Hate to plss on your french fries doonsooth but Patsy (“I am not a friend of Derek or Mike”) Pardew has lied and on more than one occasion and he’s only been here for two months !

    So IMO its OK to call him a lying c**tl

  • GeordieTwo

    Feb 11, 2011 at 6:04 PM

    Comment #19

    I would say we are now and will continue to be a selling club. In essence Carroll wanted another new contract immediately and we sold him when the offer was high enough. Did ManU sell Rooney when he complained about the club and asked to leave? No they gave him a new contract. We will continue to sell players who won’t sign new contracts at lower wages or within the limits Ashley has established. So if Jose won’t sign a contract at a wage Ashley is happy with he will be sold in the summer. This means we will never develop a team capable of competing with the top 6 under Ashley. Only when he leaves will the club progress. We will continue to be mediocre at best with the current owner sad to say. Support the lads against Blackburn but continue to speak out against the current management! All the best.

  • stuckdownsouth

    Feb 11, 2011 at 6:28 PM

    Comment #20

    Like I said AndyMac

    he’s damned if he does and he’s damned if he doesn’t.

    Personally I think he didn’t lie on Carroll, I think he genuinely believed Carroll wouldn’t be sold, because apart from City no-one was spending any money. Then Ambramovic suddenly put his hand. In his pocket and the merry-go-round began and we got a crazy offer.

    On the other hand I think you’re probably right that he did speak (or his agent spoke at least) to someone before Chris got the sack.

    Some say ‘lying c**t’ sone say that’s football.

    All week long it looked like Chris was going tonWBA, do we think somebody spoke to him before Di Matteo was sacked? Possibly.

    On another point I’m really surprised Chris hasn’t been offered a decent Job yet!!!!! Ge deserves another crack the Prem.

  • AndyMac

    Feb 11, 2011 at 7:25 PM

    Comment #21

    While we are on the subject of saying things while we have our fingers crossed. OK its attributed to “SOURCES” but that’s because Fatman and Dobbin are now getting used to manipulating the media which in turn means manipulating the fans.

  • Geordie John

    Feb 11, 2011 at 7:33 PM

    Comment #22

    If you want a better idea of what the finances are like, have a look at the article on

  • chuck

    Feb 11, 2011 at 7:38 PM

    Comment #23

    Actually, the fact of the matter is, Ashley runs our club no differently than he does his retail business, buy cheap sell high.
    But football is not the rag trade, it just happens to be show business and needs a different approach.
    Thats why i`m hoping some football mad oligarch, shows up in the near future, with a wish for success and a suitcase full of dough.

  • stuckdownsouth

    Feb 11, 2011 at 9:25 PM

    Comment #24

    Chuck I think we all want that even Ashley!


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