We think if Newcastle can continue their success in the transfer market, there could be good times coming up for Newcastle fans.
Alan Pardew – ready to lead Newcastle forward to good and better things
There was great despondency on Tyneside when Andy Carroll was sold to Liverpool for £35M last January, and there were claims made that Newcastle were now a selling club.
But successful clubs do not sell their best players, and Newcastle managed to also sell Kevin Nolan, Jose Enrique and Joey Barton last year, but Newcastle now have a stronger side this season than last.
And with the financial status of Newcastle likely to be in very good shape very shortly, there will be even less reason to sell their top players.
We have the profit/loss figures and the revenues for the last few financial years and they make for good reading, at least the most recent results do.
Here’s the profit and loss figures from the last few seasons and the bigger the bar the worse things are – and they are all losses.
It seems Newcastle got their costs under control last season, and we could even make a profit in the financial year that finishes at the end of June.
And as far as revenue or turnover is concerned, Newcastle must increase their income as even under Freddy Shepherd, Newcastle were close to £100M, but since that time the revenue figure has dropped and relegation in May of 2009 certainly didn’t help.
Here are Newcastle revenue figures of the last few seasons, and the bigger the bar the better it is in this case:
We don’t have the revenue figure for last season, so if anybody has that figure please send it to us here, and we’ll update the graph.
Newcastle seem to be doing some good things on the revenue side, and certainly the new shirt sponsorship deal with Virgin Money should help things in the future.
And while we’d rather it didn’t happen, the selling of the naming rights of St. James’ Park could also bring in perhaps £10M a year.
Sports Direct currently have the naming rights, and we assume Mike Ashley’s company is currently paying for that privilege, and certainly when St. James’ Park comes on TV for Newcastle’s games you see Sports Direct all over the place.
Newcastle are also becoming wily operators in the transfer market, and the new players are not costing the club a fortune, as they used to under Freddy Shepherd.
And the attendances at the ground are getting back to being sell-outs of 52,000, which will also help the financials, and certainly the way the club is now being run is a sustainable financial model.
We have to think that if Newcastle can get two players in the January window, and then say five or six in the summer, and let players like Alan Smith ( £60K/week wages), James Perch, Peter Lovenkrands, Xisco and Tamas Kadar leave, then we could even be challenging for a top six position next season.
And we have an outside chance of finishing in 7th place this season, but that will be difficult.
If Newcastle can challenge for a top six position, why would players want to leave Newcastle and why would Newcastle want to sell them?
Things are starting to look up at Newcastle, and that’s good.