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