A report from accountancy firm Deloitte has just been released, and Newcastle United are getting some good press.
Mike Ashley – Newcastle United owner
Newcastle were relegated from the Premier League in May of 2009, and in the following season, the Championship experienced an increase in both crowds and revenue, almost completely due to Newcastle United being in the league.
Newcastle’s home crowds in the Championship were still the 4th biggest in England over that season, with the average attendance around 46,000, and higher than Sunderland got while playing in the Premier League.
And when Newcatsle were in the second division, those clubs saw their revenues increase by 9% to exceed £400M for the only time in their history.
Last season, when the Tyneside club was back in the Premier League, the Tyneside club also helped to boost the attendance and revenues of the Premier League.
One quote from the report by Deloitte, states:
“Average attendances for the Premier League in 2010/11 was up 3% to 35,363 per match, aided by the return of Newcastle United, with St James’ Park remaining the third largest stadium in English club football.”
The report also points out that Sunderland were one of the Premier League’s big spenders that year, and paid out a massive £37M on new signings – but they seem to have got precious little for that huge outlay in the transfer market.
Of course Manchester City spent the most, and paid out £138M in transfer fees – just how ridiculous can you get.
Sunderland’s revenues were £65M in the Premier League in 2009/10, but Newcastle’s revenue that same season dropped to £52M – almost a 50% drop, because they were in the second tier of English football, and had significantly reduced TV revenues.
However, Newcastle’s revenue will have increased significantly last season, and hopefully will be close to around £100M – the revenues were £99.4M in 2008-2009, the last time the club was part of England’s top tier.
The Deloitte report says that Newcastle have total debts of £288M, with the club owing Mike Ashley around £133M, and that’s a surprise that it’s so big.
However, that was all in the 2009-20010 season, and hopefully that debt will have come down since then.
A report in the Journal today is saying that a huge amount is owed to St James Holdings Ltd, whose main focus is investment in the club.
Mike Ashley owns that company and we’re pretty sure it was set up to initially buy Newcatsle United back in the summer of 2007.
Newcastle United yesterday chose not to comment on the Deloitte report.
The bottom line is that Newcastle have received some good publicity in the rport, and iit shows what a massive club Newcastle United are – even if we haven’t won anything for 42 years.
But we didn’t realize Newcastle were in such debt. 🙁