Newcastle United are about to announce the results of their financial year through last June 30th, and as expected, it seems like the club will be in the black for the first time in a long time.
Mike Ashley – has the club on a stable financial footing
But the announcement of a profit will not change the way players are brought into the club – or how the club is run – and the profits will be ploughed back into the club, according to Managing Director Derek LLambias.
But gone are the days when Newcastle will go out and pay ridiculous fees on players, and offer them huge wages – and Newcastle did that far too many times under former Chairman Freddy Shepherd – and the club was left with a number of significant failures in the transfer market.
In the last financial year that has been announced through June 30th of 2011 Newcastle announced a loss of £3.9M on revenues of £88.4, and the year before that – when we were in the Championship we lost £33.5M on revenues of just £52.4M.
Newcastle’s revenues for the last financial year through last June were just short of £100M, but we had those levels of revenues when Freddy Shepherd managed the club, which is why there is a push to increase the revenues , and supposedly the new Wonga deal is the best shirt deal the club has ever had.
And if we keep in the Premier League there’s some big money to be made off the new £4B TV deal, and while the club have done well in the Europa League this season, there’s not too much money to be made in that competition.
Newcastle will make €450K for reaching the quarter-finals, along with a share of the gate money for the two games, and if we actually win the competition there’s a €5M check waiting.
But that’s chicken feed compared to the Champions League where the prize money is almost six times as much.
It will be interesting to see just how much profit the club have made, but certainly in the last three years or so, the financial position at Newcastle in has improved dramatically, and it will be the first profit in Mike Ashley’s time at the club – after recording losses of £34.1M, £37.7M, £33.5M and £3.9M in his first four years at the club..
It even looks like Newcastle now know what they are doing – which is a little scary. 😀
You can also reach Ed at firstname.lastname@example.org