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