Newcastle Sound Financially – Now For Some Success!

The financial figures released today for the Newcastle club, for the time they were in the Championship, gives Newcastle fans both good and bad reading.

Newcastle manager Alan Pardew – six new players this summer?

It was an absolute disaster when Newcastle were relegated, make no mistake about that,  and that’s true if only because so many changes had to be made to the  playing squad and the way the club ran their business had to change significantly, with revenues falling by 40%.

The club made a loss of only £17.1M in their Championship season, compared to £15.2M in their relegation year,  and that figure alone shows how well costs were cut, but of course it’s never easy, and lots of folks at the club lost their jobs, in the summer of 2009.

To remain above water cuts have to be brutal, and it’s never never easy on the human side of things, and it wasn’t.

The release of these dour figures should spur the Newcastle players on this Saturday, because the very last thing anybody wants at Newcastle is another relegation – let’s just leave it at that.

Some fans have said it’s the best thing that could have happened to the club, but there had to be easier ways for the club to wake up, and get their financial house in order, after the ridiculous excesses at the club when Freddy Shepherd was Chairman.

It’s hard to say, with hand on heart,  that any of this has been easy over the last couple of years for anyone connected with Newcastle.

But the way ahead, assuming the club stays in the Premier League, looks bright, and apparently Newcastle are expecting to balance their books this season, and not make any loss.

They’ll not make any profit either,  but it’s very difficult to make money running a football club, other then buying it, building it up into a very successful side, and then selling it for a huge gain.

That’s the strategy Liverpool owners Tom Hicks and George Gillett embarked on a few years ago, and last year got their fingers burned to the tune of around £135M – that’s the money they lost in owning the Liverpool club.

Newcastle are trying to build up their revenues now, and it should be close to the £86M it was in the relegation year, and with wages under much better control, that should help Newcastle break even this season.

So at least on the day to day running of things, the club will be in good financial order, but of course there is always the small matter of having to pay off Mike Ashley’s loans of close to £140M, some time in the future.

Newcastle have already announced new sponsorship deals with Puma and Northern Rock, and of course the big Premier TV money will go a long way to help Newcastle too, and the path ahead seems quite strong financially.

Now we need a good team on the pitch, with say six new players in the summer, and that’s the best strategy to make Newcastle successful both on the field of play, and also in financial measurements too.

Oh, and Newcastle also need to be in the Premier League come the end of May – I almost forgot to mention that.

Howay The Lads

14 comments so far

  • Mac

    Mar 30, 2011 at 10:45 AM

    Comment #1

    Thank u Mr Ashley

  • Mac

    Mar 30, 2011 at 10:46 AM

    Comment #2

    Oh and 1st

  • BigKirky

    Mar 30, 2011 at 10:52 AM

    Comment #3

    The good side and the bad side of running a football club. I really like the fact wer going for players under the age of 24. However, selling ur best players is not a way to build.

  • listie

    Mar 30, 2011 at 10:55 AM

    Comment #4

    The wages-to-turnover ratio increased to 90.6% from 82.6% in our regulation year, any everyone knows that 80%+ is very bad news, so I must give some credit to MA for bank rolling us in the fizzy pop league, many others with a 90% ratio would have gone under

  • Darryl

    Mar 30, 2011 at 11:03 AM

    Comment #5

    Sorry Kirky, but 35million for someone who played no more than half a seasons premier league games was always going to be acceptable. God, even 20million would of been. However, 20 million would of caused chaos. 35million… Most expensive english player ever? Sorry… he’s not that good. Just be quiet till after the summer eh.

  • listie

    Mar 30, 2011 at 11:07 AM

    Comment #6

    Darryl completley agree, I know a few pool fans and they are more excited about Suarez, than AC, and they all feel that buying Carroll was a case of showing the fans they can compete with the top clubs, but not a footballing buy

  • Mac

    Mar 30, 2011 at 11:10 AM

    Comment #7

    Living in Liverpool i can confirm that all Liverpool fans are far more excited about Suarez than Carroll

  • Stuart

    Mar 30, 2011 at 11:12 AM

    Comment #8

    Of course they are, Suarez is a tricky little skillful player with pace.

    AC is going to force liverpool to play dull predictable longball football like we had to.

  • oldbobaycliffe

    Mar 30, 2011 at 11:36 AM

    Comment #9

    just watched sky and a so called expert couldn,t understand why nufc had not released the full accounts it appears ashleyhas just released enough imformation for us to think he is doing a great job.the expert said that all clubs should be made to show the full accounts

  • Stuart

    Mar 30, 2011 at 11:38 AM

    Comment #10

    Yeah, the full accounts arent due to be released until tomorrow apparently.


    Mar 30, 2011 at 11:52 AM

    Comment #11

    Wouldnt be shocked if Newcastle is put up for sale come summer after these reports prove that we are (or very close to being) stable and sustainable IF we stay up (which we will)

    So if these reports are the full story I’d say thank u Mr Ashley, you did some good and a lot of bad but its now time to ship off and buy a Rugby team…or a pub?

  • BigKirky

    Mar 30, 2011 at 12:31 PM

    Comment #12

    Darryl, I haven’t said that £35million wasn’t a good deal. What im saying is when does selling ur best players ever stop? I said originally that I wudnt sell him for 30 million but if we got 35 or 40 million I wud, BUT THE PLAYER MUST BE REPLACED by equal or greater quality. The end of the transfer window will tell us for sure which direction we’re going. I do think we’ll sign some good quality players this summer if we stay up. Wenger resists selling his players unless theyv asked for a move, are too old, or no longer wanted. Unless we get silly money offers for players I.e. Carroll, we shud keep them. The offer for 12million for Milner shud have been kept. End of summer we will see.

  • ToonMobile

    Mar 30, 2011 at 1:23 PM

    Comment #13

    As I mentioned in the other loan article – we might appear to be on a sound financial footing but we are not on one which will appeal to any buyers now or in the near future in my opinion. The loans are a burden which when added to the base cost price to buy the club, will probably turn away any potential buyers (my opinion).

    The fact that we won’t be able to repay those loans any time in the near future without selling a few more players for £35million makes me worried we will be stuck with Ashley for a long long time…and also selling top players…

  • Magpies-till-d3ath

    Mar 30, 2011 at 7:42 PM

    Comment #14

    Ashley, if there were ever a time to get into our good books, the summer would be good


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