Newcastle were the 25th richest club in the world over the financial year through last June 30th.
Newcastle are in 25th place with £88M in revenue they brought in for the last financial year, and are only a couple of places above Sunderland.
- Newcastle’s revenues were £88M, which was an increase of 69% year over year – when we were in the Championship – and that was the 8th highest of all the Premier League clubs
- Newcastle United were top of the league in terms of profitability – finishing the year more than £32M in the black, mainly due to the £35M we got up front for Andy Carroll from Liverpool
There’s no doubt the club is being well run financially by Derek Llambias and owner Mike Ashley
- Premier League clubs’ net debt in June of 2011 includes £1.5B of interest-free loans from club owners (in 2010 it was £1B), mostly relating to Chelsea (£819M), Newcastle United (£277M) and Fulham(£200M)
- Sheikh Mansour’s reported equity investment into Manchester City in just four seasons has climbed to over £800M
- Figures for the 2010/2011 financial year show Premier League clubs’ revenues increased by 12% to a grand total of £2.3B
- Total wages across the Premier League rose by £201M – 14% – to a total o£ £1.6B
- The Premier League wages/revenue ratio reached an all time high of 70% but Newcastle’s was about 50% – or somewhere around that figure
- For the eighth consecutive season Chelsea (£191M) had the highest wages of any club in the Premier League, with Manchester City (£174M) next, followed by Manchester United (£153M)
Alan Switzer, the director in the sports business group at Deloitte, said wage control was very important:
“If the wages to revenue ratio is 70% or higher it’s very difficult to make an operating profit.” “In our view it is too high as a league and the clubs need to be edging back to the low 60s.”
“Every 1% that it drops should increase operating profits by £20M to £25M.” “Chelsea and Manchester City are the clubs which have recorded the biggest losses so they are the two which have the most to do.”
“And to be fair to them, they have been pretty public about needing to take action,” “A significant number of clubs around Europe have some distance to travel on the road towards compliance.”
Newcastle are continuing to put their financial house in order and when the current financial year ends at the end of next month, Newcastle will be in an even better financial position.
Newcastle were much higher up the total revenue table when Bobby Robson was managing the club, and we had revenues of around £100M, fueled by our participation in the Champions League, and the highest we ever got was 13th position – unlucky for some.
We should see if we can get higher than that over the next few years.