We check on the excellent Swiss Ramble site quite often, just to see what financial information is on there for European clubs, and the creator of the site is a Brit, now living in Switzerland, after meeting and marrying a Swiss Miss – as he says – but he doesn’t give his name.
Michel Platini – UEFA President implementing Financial Fair Play Rules
The web-site put up information earlier this month that shows Newcastle United in a very good financial state, at least compared to some of the other top clubs in the Premier League, and this table shows you where we stand, and it’s the profit and loss financial information from the last financial year available – July 1st 2010 through June 30th, 2011 – which was our first season back with the big boys.
It shows that Manchester United, Arsenal and Newcastle made profits for that year, see the bright yellow row near the bottom, with Newcastle making £33M when you include transfers, and that compares to losses of £197M for Manchester City, £67M for Chelsea, and £49M for Liverpool.
Arsenal made £15M and Manchester United made £30M, and so when you include transfers, Newcastle were at the very top of the Premier League – financially.
Without the transfers included – the operating profit/loss was a loss of only £4M for Newcastle, that’s on the aquatic blue row about half way down, with only Manchester United £60M, and Arsenal £11M making an operating profit.
The Financial Fair Play Rules that Michel Platini is pushing hard, demands that clubs balance their books – they do not make a loss in other words – with the financial figures in the following table the maximum losses allowed, with an acceptable deviation allowed in the upcoming seasons.
So Manchester City, as one example, have to essentially get from losing £195M in 2011, to making a loss of only around £50M for the two previous years through 2014 – and Roberto Mancini is complaining the club didn’t spend enough money last summer?
And the following table shows the distribution of funds in the Premier League for last season, with Newcastle picking up a good £54.2M by finishing in 5th place in the league table.
And with the new financial agreements recently announced by the Premier League in their new three year agreement with Sky Sports and BT – to run from season 2013-2014 through season 2015-2016 – the amounts increase quite substantially as seen in this table.
Whether you like Mike Ashley and Derek LLambias or not, you’ve got to give them credit for getting Newcastle into a very decent financial position, which we expect to be even better when the financial figures are released for last season.
Now we need to bring in at least two players in January, keep all our current players at the club – including a certain Mr. Demba Ba – and bring in another three top players next summer, and then we’ll be in business in the Premier League, and not just on the financial front.
Howay The Lads!!
You can also reach Ed at email@example.com
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