Newcastle Announce Profit Of £1.4M – In Good Shape Financially


Newcastle have announced their financial figures for the year ended June 30 of 21012, and the club was able to announce an overall profit of £1.4M, and that compares with last year’s figure of -£3.9M, and that’s really the first profit Newcastle have had since Mike Ashley took over the club in the summer of 2007.

derek llambias closeup

Derek LLambias – done a very good job on the financial side for Newcastle

Last year’s figures included an overall profit of £32.6M but that was skewed by the £35M and other fees Newcastle received in the transfer market, and if you take those out it was really a loss of £3.9M.

The revenue or turnover was £93.3M, and that’s an increase of 5.4% over the previous year’s figure of £88.4M – and that put Newcastle in 20th place of all football clubs in the world, measured on revenue.

The club says the revenue was boosted by Newcastle’s 5th place finish in the Premier League and income from TV increased by 14.6% over the previous year, and that will increase next year even more – with the new £4B TV deal recently negotiated by the Premier League.

Here’s a graph of the club’s revenue over the last five years and notice the dip in 2009-2010 when we were in the second division.

newcastle revenues

And here is the profit and loss (mostly loss ) and note it’s the first profit since Mike Ashley took over.

newcastle profit and loss

And Newcastle reported today some odd statistics – the average attendance at St. James’ Park rose to 49,936 – the official capacity of St. James’ Park is 52,387 – and the attendance is an increase of 2,190 over the previous year – but ticket revenue still fell by 7% because of the season ticket prices being frozen with the ten and nine-year season ticket deals.

That helps to fill the stadium and gives Newcastle a competitive advantage over the opposition, but it also reduces the overall revenue from ticket sales.

But also the excellent deals offered by the club for season tickets resulted in the highest level of season ticket holders since 2007 – which is great.

Commercial revenue fell by 12.7%, which is a little worrying, but the new partnership deal with Wonga should improve the situation next year – and it’s the biggest shirt sponsorship deal ever signed by Newcastle.

And finally the club’s wage bill rose by 20% to £64.1M, which is not good, but it follows the signings of a number of key players, including Cabaye, Marveaux, Santon, Ba and Cisse, and that puts the club’s wages-to-revenue ratio at a high 68.7%, an increase of 8.1% on last year.

And with the signing of five new players in January, the wages figure will rise this year too, although Derek LLambias said in late January the club are taking steps to reduce the overall wage bill, and Xisco and Nile Ranger had their contracts terminated this year and veteran goalkeeper Steve Harper will not have his contract renewed this summer.

Overall these results are excellent, and it shows the club are handling financial matters extremely well – so now the push has to be to increase the profits after player amortization, and that money will be re-invested each year back into the club.

Mike Ashley may have done a lot of things wrong, especially in his first two yeas at the helm, when we ended up being relegated for the first time from the Premier League – but over these last three or four years things are starting to look up – and that’s especially true on the financial side of things.

Now to get Newcastle in the top four of the Premier League – that’s what we need to do next. 😀

Howay The Lads!!

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52 comments so far

  • ichrisho

    Mar 27, 2013 at 4:14 PM

    Comment #1

    Oh no – we may even have to start complimenting Mr.Ashley… how times have changed eh? Where is Jail for Ashley??? 🙂

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  • Tsunki

    Mar 27, 2013 at 4:16 PM

    Comment #2

    I must say robins personality assessment of me was painfully accurate, he made me look quite the fool! I have no fitting retort for such towering wit so I shall retire from contest forthwith. mackem.

    In any business those have to be impressive turnaround results but in a high turnover business like a footy club in this climate you have to say that’s a pretty decent showing. Now draft in the TV windfall and there may be cash for ash to splash in summer.

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  • Ibizatoon - Back by popular demand

    Mar 27, 2013 at 4:18 PM

    Comment #3

    Sky Sports Headline on this subject “Newcastle United have revealed a substantial drop in profits” 🙂

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  • Ibizatoon - Back by popular demand

    Mar 27, 2013 at 4:19 PM

    Comment #4

    Tsunki…Don’t feel badly mate, many have fallen before you to the power of Robins wit and many will after you…sorry If that makes you feel any less special 😉

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  • lesh

    Mar 27, 2013 at 4:19 PM

    Comment #5

    All those talking up a new stadium’ll be delighted with a £1.4m profit – that’s enough to pay for one?

    Seriously though, great news and all credit to Ashley.

    Now, back to the Dreamland Arena, who exactly’s gonna pay for a new stadium? The cost of said same would run into hundreds of millions.

    Pity they hadn’t built an Olympic venue in Newcastle as we could have taken it over on ala West Ham, subsidised by the country’s taxpayers!

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  • lesh

    Mar 27, 2013 at 4:21 PM

    Comment #6

    Missin ya awlreadh Tsunki

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  • lesh

    Mar 27, 2013 at 4:22 PM

    Comment #7

    • awlreadh = awlready

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  • lesh

    Mar 27, 2013 at 4:23 PM

    Comment #8

    • Mickey mouse phone!!

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  • Tsunki

    Mar 27, 2013 at 4:26 PM

    Comment #9

    After being in a queue since 10.20 this morning my lad phoned me half an hour ago to say he got 2 tickets for the unwashed visit in no other than L7 as predicted. They are for my 2 bros-in-law but for £40-odd a go they might need binoculars to see if Pards is developing a bald spot. 🙂

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  • ichrisho

    Mar 27, 2013 at 4:28 PM

    Comment #10

    @ Ibiza
    Sky Sports are so anti-NUFC… what is their beef? Ever since they got the train to QPR with Barton – I’ve thought there something fishy going on…

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  • Vask

    Mar 27, 2013 at 4:29 PM

    Comment #11

    I mentioned the ‘new’ stadium before there in reference to a story being banded about back in the 90’s before the stadium expansion took place. The design of it was supposed to be similar to the San Siro.

    I would be against moving out of St James’ for the obvious reasons mentioned by those opposed to the idea.

    The question I asked was where these extra 7 500 or so seats would be situated. The question has since been answered.

    I think since the stadium expansion the atmosphere has deteriorated somewhat.

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  • Charlie in the Gallowgate

    Mar 27, 2013 at 4:30 PM

    Comment #12

    Lesh
    west Ham not the only ones
    Interesting article in todays Independent.
    ‘Blowing the whistle on football’s debt shame’
    Britain’s two state banks (our banks) are bailing out premiership teams Liverpool, Fulham and West Ham yet small businesses can’t get loans.
    So we the tax payer are paying for Andy Carrols wages £90.000 a week
    Stephen Gerrard £140.000 a week
    Dimitar Bergatov £100.000 a week
    surely if we are going to have a level playing field the FA have got to do something

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  • ichrisho

    Mar 27, 2013 at 4:30 PM

    Comment #13

    Oh an’ that ROBIN dude is quite possibly the wittiest fella on here… I think we should all leave the blog as we cant match this guy’s wit… F-A-N-N-Y

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  • ichrisho

    Mar 27, 2013 at 4:32 PM

    Comment #14

    Charlie – Standard and Chartered are the main sponsors of Liverpool and they have a contract to run the finances too of course… they have and always will have an open line of credit with anyone in the UK.. Liverpool on easy footing… Look at Real Madrid – they have been funded by the Bank of Spain (Mainly the King) since the 50’s…

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  • ichrisho

    Mar 27, 2013 at 4:35 PM

    Comment #15

    Sunderland a SELL_OUT….

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  • Ibizatoon - Back by popular demand

    Mar 27, 2013 at 4:36 PM

    Comment #16

    Tsunki…Perhaps Pardew is growing out his beard with the idea of having some transplanted to his head?

    Perhaps this is just a really silly comment.

    Perhaps there should be no mention of perhaps?

    ichrisho…Train to QPR with Barton? Personally I don’t care about their bias, just makes them look silly imo. That headline did actually make me laugh, we’re one of few clubs who actually make a profit and they find a way to make it a negative….takes some doing 🙂

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  • Charlie in the Gallowgate

    Mar 27, 2013 at 4:37 PM

    Comment #17

    ichrisho
    fair enough Standard and charter
    But a bank that we own 80% of, acting bankers to debt ridden clubs sticks in my throat.

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  • Ibizatoon - Back by popular demand

    Mar 27, 2013 at 4:39 PM

    Comment #18

    Charlie…Whilst I completely agree that the banks should be doing more to help small business with regards to loans, I assume the PL clubs are making the interest payments back to the banks etc? I haven’t read the article, but I imagine there not just giving free money to teams? If they are, let’s start a team a.s.a.p…love a bit of free money 😉

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  • magpiedan

    Mar 27, 2013 at 4:46 PM

    Comment #19

    pretty new poster. thought i’d get in on the action.

    What are sky sports about?! they’re so against us. maybe it’s the distance? bunch of muppets AS IF we had 30 mil profit last year?
    On a positive. Great to see us as one of the few clubs ran as a business well. Revenue increasing, profit increasing, global appeal increasing. Brilliant signs that the Ashley-era has some purpose and position amongst modern football. Cheeky 5 million Euros for winning Europa and we are well on our way. (Dreaming lol)

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  • ichrisho

    Mar 27, 2013 at 4:51 PM

    Comment #20

    Ibiza… do you not remember that nugget who went down with Barton on the train – reporting all the way… idiot sensationalists… 🙂

    Charlie – They have to be paying the banks in Interest… there is no other way… I am looking for the spreadsheet that was done that showed what wages were to the clubs income… remember us in 2009 – Wages were near 85% of our outlay… Good aul’ Dennis Wise and his no-mark talents..

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  • Bambams

    Mar 27, 2013 at 4:52 PM

    Comment #21

    Just on the development banter. … I am sure there were plans to build over the top of Strawberry Tce and St James metro which would assist the ‘ Anchoring of the Canter lever roof ‘ also allowing the development of bars and leisure facilities within the umbrella…..The road would still be there and the development would be built over the top…..

    Lotsa coin though. ….

    WHAT A STADIUM

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  • robin

    Mar 27, 2013 at 4:52 PM

    Comment #22

    Ichriso, you are corret in your assumption, that you are plebiean. I don’t imagine for one moment, that you would be missed if you left the blog, with that rapier sharp wit of yours. You dig dude!

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  • ichrisho

    Mar 27, 2013 at 4:53 PM

    Comment #23

    magpiedan – as we all do with the Toon – Keep Dreaming… one day and I predict 2016.. we will win some silverware and then all other clubs can lick it… 🙂

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  • Cool Hand Luke

    Mar 27, 2013 at 4:59 PM

    Comment #24

    From the angle of this photo, the profile of Dereks head is almost perfectly spherical. Remarkable fellow.

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  • ichrisho

    Mar 27, 2013 at 4:59 PM

    Comment #25

    Directly back @ robin – I didn’t assume anything sh1t-balls – I stated a fact. You are a mackem scumbag and should go get a job instead of being on this NUFC blog … oh wait… that’s not possible as you’re probably a beaten-down, crusty, no-mark, no mates alcoholic…

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  • ichrisho

    Mar 27, 2013 at 5:10 PM

    Comment #26

    Good comeback – Mackems eh lads??? 🙂
    Have a good evening all and catch ye tomo… HWTL

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  • t00ntime

    Mar 27, 2013 at 5:10 PM

    Comment #27

    @spoof (from like 3posts ago xD) the 3purples coming in came from when MA went to france to watch aub.
    I for one would be very happy if

    Out:
    obertan
    Gosling
    Simmo
    Colo
    Youngsters who arent good enough

    In:
    Aub/remy ST (purple)
    Lens RW/LW/ST (purple-ish)
    A Young CB to sit on the bench and play if need be.
    And then buy some squad fillers.

    Lens has already said he wants to play in the bpl after the summer and newcastle were rumoured to be in for him (in january)

    My team would then be (judging on players avg, not form atm)

    ——————-krul—————–
    Debuchy-Staylor-mbiwa-santon
    ————tiote——-cabaye——-
    HBA———-sissoko—–Gouf/lens
    —————–remy/aub————-

    Play lens for a more attacking team.

    Then the players i’m not botherd about as long as we replace:
    Williamson
    Tiote
    Jonas
    Rtaylor

    And if that happen I think we cud give next season a good go, even without spending that much.

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  • NUFC_LEAZES END

    Mar 27, 2013 at 5:17 PM

    Comment #28

    L7 isn’t that bad mate, I had a season ticket there , it’s a great view IMO 🙂
    That’s where I have got my ticket, not sure of I’m in the milburn or the LEAZES corner like

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  • NUFC_LEAZES END

    Mar 27, 2013 at 5:19 PM

    Comment #29

    Where I had*

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  • brian kilclines pony tail

    Mar 27, 2013 at 5:33 PM

    Comment #30

    excellent financial report from the future, in around 19000 years we will make a profit ha ha

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  • Tsunki

    Mar 27, 2013 at 5:35 PM

    Comment #31

    TBF any ticket is a good ticket cant grumble. I am in my normal seat in the corner at Gallowgate anyways so…….. 😀

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  • NUFC_LEAZES END

    Mar 27, 2013 at 5:47 PM

    Comment #32

    @tsunki

    True man, it’s made my day finally getting a ticket, am made up 🙂

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  • Jail for Ashley

    Mar 27, 2013 at 5:50 PM

    Comment #33

    Shame the profits graph of SD hasn’t
    been shown next to ours since he stuck his tacky billboards all over our famous stadium,one of only two man made structures you can see from the moon.

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  • lesh

    Mar 27, 2013 at 6:19 PM

    Comment #34

    Charlie in the Gallowgate @12, West Ham (there’stalk of them wanting Rednapp!), Fulham, Liverpool bring supported by the banks, us? Financial Fair Play? Cobblers, it’ll never happen in the spirit intended and our £1.4m profit is some achievement and deserves congratulation.

    .

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  • Tsunki

    Mar 27, 2013 at 6:24 PM

    Comment #35

    L7F – I’ve been up here before, plenty seem to bitch about it but I think its just the pie-botherers struggling to heave their unfit carcasses up all those stairs. Its a good panorama as far as I can recall, well it should be its like looking down from a freakin’ blimp! 😀 I remember I had a very nice view of Wor Al missing a penalty at the end of a nail-biting 3-3 against Ipswich. Oh and that was where I heard a grown man behind us break down sobbing and wailing ‘NOT CORT NOOOO BOBBY MANNNN!’ when SBR subbed him on. Happy days, happy days. 🙂

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  • swiller2004

    Mar 27, 2013 at 6:38 PM

    Comment #36

    Standard charter have no involvement in finances of Liverpool other than the main sponsorship on they’re shirts. When Liverpool were leveraged by Gilliet & Hicks they owed the money to barclays which received no government bailout. Plus when FSG took over they paid the loan amount back to barclays. But Newcastle were sponsored by Northern rock, which was bailed out, so it was your players that were payed by the tax payer.

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  • Tsunki

    Mar 27, 2013 at 6:49 PM

    Comment #37

    Hmm. It looks like I have really killed it. My powers are undiminished.

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  • Charlie in the Gallowgate

    Mar 27, 2013 at 7:07 PM

    Comment #38

    lesh
    I know the F**in’ useless A and Premiershit will do nowt about Finacial Fair Play but it gets the goat up when they won’t lend to small businesses etc.,

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  • NUFC_LEAZES END

    Mar 27, 2013 at 7:15 PM

    Comment #39

    @tsunki

    1st time I went to a match It was against Ipswich and shearer scored a pen :p

    It was like looking at dots run around then though ahaha

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  • Tsunki

    Mar 27, 2013 at 7:22 PM

    Comment #40

    Hmm. Swiller partly has a point, but the sponsorship up to 2010 predated the government rescue and was a contractual obligation anyway. Its the £10m extension that could be construed as spending public money on a football club, which caused some to question how NR could use Public money to prop up a Championship club. However, that view has proved narrow-minded since sponsorship is basically advertising budget. So, notwithstanding the long-term local links with the club and community it bore out as a sensible spend in order to promote the ailing institution, seeing as Virgin bought it out and continued the sponsorship.

    Technically though, that is correct, public money inevitably paid the players wages in some part. It won’t soon though. Our stars will be getting their wedge part-paid by the desperately over-extended low wage section of society being drained by our Usurer benefactors.

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