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News and Commentary On Newcastle United Football Club By Ed Harrison, A Proud Exiled Geordie And Lifelong Fan

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Newcastle Close To Becoming A Top Club Again

9:17 am, Friday, January 13th, 2012 by Dr. Ed Harrison · 34 Comments

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.

Comments welcome.



Tags: Financials · Newcastle News



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34 responses so far ↓

  • 1 solano // Jan 13, 2012 at 9:21 AM

    Some graphs to give the pseudo-accountants a chumpy! Mmmm

  • 2 Dannyo // Jan 13, 2012 at 9:24 AM

    @solano
    Oy, some of us like those :P

  • 3 solano // Jan 13, 2012 at 9:27 AM

    They could also look up on leveraged buyouts. Very interesting! Beats fantasising over Cwarr’s nonsense, I suppose.

  • 4 solano // Jan 13, 2012 at 9:29 AM

    Dannyo….I thought you had moved on?! However, as a first comment, I thought it would stimulate debate and bring Bills and Co. out of “lock up”. ;-)
    It certainly beats shouting out “1st!” as I take the gold!

  • 5 Toon Tang // Jan 13, 2012 at 9:37 AM

    1st

  • 6 WWJBD // Jan 13, 2012 at 9:39 AM

    “Sports Direct currently have the naming rights, and we assume Mike Ashley’s company is currently paying for that privilege”

    Didnt they openly say it was a showcase of what the naming rights could be not a sponsorship? I dont think they are paying a penny for it

  • 7 Dannyo // Jan 13, 2012 at 9:40 AM

    @solano
    Hehe, updated finances are always interesting mate, especially if it bodes well for the club.
    If the club is now running a profit, there’s no reason why we should not increase our ambition.
    It’s a win, win situation, only thing remaining to be seen is how much ambition there is mate ;)
    Defending MA through finances is no longer feesable, it’s 4 years ago now and it’s forgotten.
    The future still matters tho.

  • 8 catchy in norway // Jan 13, 2012 at 9:40 AM

    i would like to think we were on our way to becoming a top team again,
    i would also like to believe that MA and DL can see past the profit he can make from some of our better players and add to them,
    we arnt that far off europe,

    you know it wasnt so long ago we where the 13 richest club in the world, when we were in europe,

    success breeds success

  • 9 Eastander // Jan 13, 2012 at 9:43 AM

    @6 yes, i’m sure Sports Direct took it until someone offered to pay for it, something I think we may be waiting a long time for

    On Morrison, I fail to see what we have to lose by spending £1m on potentially an up and coming star… it seems a good opportunity to me, if he didnt have the issues he does he would either be tied up by Man U or cost about 5m

  • 10 Dannyo // Jan 13, 2012 at 9:44 AM

    @wwjbd
    Agree with you there mate, they said if a sponsor came in it would be worth £10 mill. I doubt MA pays his club from his own advertising.
    As u say, i thought the SDA name was just a showcase.

  • 11 GeordieGerman // Jan 13, 2012 at 9:46 AM

    WWJBD, I’d have thought he would pay for the advertising. Just for tax purposes.

  • 12 RonVanDam // Jan 13, 2012 at 9:51 AM

    @ Toon Tang – bro you are 16 mins late lol

  • 13 GeordieGerman // Jan 13, 2012 at 9:54 AM

    Example. SD earns 100 million NUFC -10 million. SD pays NUFC 10 Million. Ashley (SD) only has to pay tax on 90 million. Ashley (NUFC) Breaks even no profit no tax.

  • 14 WWJBD // Jan 13, 2012 at 9:56 AM

    Eastender Dannyo
    Glad am not just going crazy haha. I cant see him paying too much for the advertising tbh

    GG
    fair point but we will never know most likely….cant see him paying anything worth it to the club though

  • 15 GeordieGerman // Jan 13, 2012 at 9:56 AM

    RonVanDam, think Toon Tang was referring to post 4. Joke.

  • 16 Griff-toon // Jan 13, 2012 at 9:58 AM

    Hello all, my first post on this site. I have been reading posts for a long time but found out I whanted to contribute :)

    I feel we should also offload Xisco who is prob on about 50K /week

  • 17 GeordieGerman // Jan 13, 2012 at 9:58 AM

    WWJBD, I think Ashley would like NUFC to make a 20+ Million loss. Then he can write more off at SD as advertising costs.

  • 18 solano // Jan 13, 2012 at 10:07 AM

    GG@11 – money paid so far for advertising from SD is 47k according to the last set of accounts, apparently!

  • 19 WWJBD // Jan 13, 2012 at 10:11 AM

    GG
    I doubt we will ever know mate

  • 20 solano // Jan 13, 2012 at 10:12 AM

    GG @17…tax needn’t be taxing!

  • 21 Les Grossman // Jan 13, 2012 at 10:18 AM

    Ima talking scorched earth MOFO

  • 22 stuart no9 // Jan 13, 2012 at 10:20 AM

    “close to becoming a top club again” i’m sorry ed, you can show your graphs as much as you want in desperation to try to justify how well we are doing. As far as i am concerned i dont need a graph to tell me 1 , we need a striker, 2 we will never be a top club, with our current regime. 3 it dosnt take 5 years to balance the books. If it has tsken 5 years , and like some fans say, ” Ash hasnt made a profit” why the hell did he buy the club in the first placeif he knew it was going to take him 5 years hard work to sort it out? yeah right,

  • 23 Les Grossman // Jan 13, 2012 at 10:32 AM

    Stuart No 9 (Playyyyerrrrr)
    Good post Man!!!

    We will sell before we buy!

  • 24 oldbobaycliffe // Jan 13, 2012 at 10:35 AM

    what your saying ed is in 2010-2011 season we made a loss of over 4.5million despite selling carroll for an alleged 35million so we would have made a loss of 40 million last season.i dont believe any of the figures i have seen these figures before they dont add up.with our gates the sale of merchandise and sky money where does it all go

  • 25 stuart no9 // Jan 13, 2012 at 10:58 AM

    getting away from graphs ” have we won a f…king cup yet? were a football team not the met office.

  • 26 wynsleap // Jan 13, 2012 at 11:12 AM

    Have to agree with Stuart No9
    Top clubs chase top players not those with questionable injuries, buy out clauses or dodgy disciplinary records – ie gambling on a cheap deal coming off in spectacular fashion.
    Top clubs don’t operate on a ‘one out one in’ rotation policy but prefer to keep their top players and then supplement them.
    Top clubs don’t treat their supporters with contempt, lie to them and tell them “you don’t know how f…..g horrible we can be”.
    Top clubs don’t have their stadiums looking like the bargain basement of a tatty, retail emporium.
    Top clubs win things -regularly
    Yes we may have struck lucky with the likes of Tiote, Ba and Cabaye for a small outlay and currently have a decent position in the Premirership but like any gambler will tell you, luck will often change for the worse.
    Yes – the Toon may stay on a good financial footing due to The Controller’s reluctance to speculate to accumulate but it will NEVER be a top club while Ashley is in charge.

  • 27 Ponderous Pardew // Jan 13, 2012 at 11:15 AM

    oldboybaycliffe

    These figures are before player trading.

  • 28 stuart no9 // Jan 13, 2012 at 11:29 AM

    wyn @26 here-here. buy yourself a pint.

  • 29 Sav // Jan 13, 2012 at 12:08 PM

    Mashley prefers pie graphs. Mmmmmm!
    When we’ve finished paying off Michael Owen.s fee, Smudger’s pension plan and Kieron Dyer’s health insurance, we’ll be in clover.

  • 30 geordieal // Jan 13, 2012 at 3:03 PM

    Correct me if I’m wrong, but I think it’s against premier league rules for the owner of a company to sponsor his own football team, hence the reason Ashley had to sell his stake in adidas when he first bought Newcastle, it’s a conflict of interests, so newcastle won’t be getting anything for the sports direct logos everywhere, it’s basically free advertising until someone else decides to pay for that privilege.

  • 31 stuart no9 // Jan 13, 2012 at 3:07 PM

    geordeal @ 30 makes sense to me ! if that is the case how much do you reckon he has saved on advertising ? a tidy little sum no doubt?

  • 32 geordieal // Jan 13, 2012 at 3:12 PM

    Stuart #9
    If he’s wanting 10 mil a year, I doubt anything will happen before seasons end, so he’s saving himself about 5 mil for half a season, more if ya consider we are beamed all around the world and he’s trying to become world wide and get into the far east markets.

  • 33 stuart no9 // Jan 13, 2012 at 3:36 PM

    geordeal- absolutely .,that is just this season , what about the the last few seasons where we have seen sports direct all over the ground. There must be £20m worth of advertising alone.

  • 34 geordieal // Jan 13, 2012 at 4:33 PM

    Stuart no9
    Must be nice to be able to afford a premier league club just so ya can advertise cheap arse sports goods. Lol.




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