Newcastle’s Financial Picture To Improve Dramatically


Newcastle’s financial outlook is good, and in fact it’s very good, it we can stay in the Premier League, although we are told by Joe Kinnear and Alan Pardew at frequent intervals that we cannot compete with the likes of Manchester United, and that’s true, but with the new three-year Premier league deal, Newcastle should see increases in both our revenues and profits in the next few years.

mike ashley joe kinnear

Mike Ashley and Joe Kinnear at Newcastle

It didn’t help us at all that we were relegated in 2009, and you can see how that hit Newcastle revenues with this following chart showing the revenues over the last five years.

newcastle revenues

And by thrift financial controls – sometime severe – Newcastle have managed to become profitable in the last financial year we have figures for – it’s a small profit of only £1.4M but a profit nonetheless, and shows Newcastle have their costs under control.

And notice in the relegation season we actually reduced our losses from the previous year, even though the revenues went down by about £34M.

newcastle profit and loss

We are short on commercial revenues as we are told constantly, but it would help if Mike Ashley’s company Sports Direct, would pay for all the advertising we see around St. James’ Park, and in fact not paying for that advertising would not be legal over here in the US.

But the point we want to make is that with the new Premier League TV deal – clubs now get anywhere between £60M and £100M come the end of the season in May –  and the actual amount depends on various things such as league position and how many times the club has been shown on TV, amongst other measurements.

That’s an average of £80M, and in the previous TV deal, the clubs were paid anywhere between £40M and £60M, which is an average of £50M.

So on average each Premier League club will get an extra £30M a year because of the new TV deal.

If Newcastle can keep their costs under control, and why would we not be able to do that (?), then that’s an extra £30M at the top line, and that will flow right down to the bottom line – the profit.

So while admittedly it’s a simple way to look at this, the extra TV money should see Newcastle’ profits increase in the 20013-1014 financial year, and remember we still don’t have the figures for the financial year that ended on June 30th of this year, and those figures should be good.

If Mike Ashley will pledge to put all profits back into the club, which Derek LLambias kept saying was always the plan,  we should be in very good shape financially, and yes we still can’t compete with the Manchester Uniteds of this world, but we will still become a richer club than we are at the moment.

We’re the 20th richest club in the world today and we should move up that league table in the next few years.

We think that’s good news.

Comments welcome.

Ian Begg is a reader who recently found out that his Mom was very ill, and he has to return to Australia. Ian has a Platinum Club season ticket that has £700 left on it, and he is willing to sell it for £550 or a best offer.

Please see if you can help Ian out, and you can contact him by email at ian_s_begg@hotmail.com – thanks.

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73 comments so far

  • NEWEXPATMAGPIE

    Nov 16, 2013 at 11:11 AM

    Comment #1

    Financially healthy ??

    ” If Mike Ashley will Pledge to put all the Profits back into the Club, which Derick LLambias said was always the plan, we should be in very good shape financially…………????? “!!

    What is all this for a Crock…………….. !!!!

    Ashley probably won,t put one cent of the TV money back into the club? He,s just tight for that, a decent signing in the Transfer Window last summer was too much for him, also last summer, the only permanent signing was Vernon Anita, but then came January and most of the French we signed were either on the cheap or free transfers?

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  • NEWEXPATMAGPIE

    Nov 16, 2013 at 11:13 AM

    Comment #2

    “He,s just too tight for that………..”

    Seem to remeber that we had no summer pre-season training camp either before the kick-off this year?

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  • jimmysmith

    Nov 16, 2013 at 11:14 AM

    Comment #3

    If he trousers the money, he surely puts himself at grave risk, although frankly, I wouldn’t put it past him.

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  • NEWEXPATMAGPIE

    Nov 16, 2013 at 11:17 AM

    Comment #4

    That just my point Jimmy ?

    He has pumped money into the club, yeh, but what he,s taking out is way more ! Advertising rights for example, St James looks like the Direct Sports Arena he tried to make when they tried to change the name of the ground !

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  • Ciaran

    Nov 16, 2013 at 11:24 AM

    Comment #5

    Eugh, our financial position improving does not help the team or the fans, it simply helps Mike Ashley so cut with the “this can only be good for Newcastle United” bullsh** Ed.

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  • toonarmydownsouth

    Nov 16, 2013 at 11:24 AM

    Comment #6

    Ibiza
    From previous
    Heard a few times now that the big man has his heart set on going stateside!

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  • Plaigombi

    Nov 16, 2013 at 11:25 AM

    Comment #7

    Well written article but wishful thinking I’m afraid. Cashley will use every device he can come up with to drain finances from the club. He sees NUFC as a cash cow and dreaming of its revenue being invested in strengthening the squad is pointless. Whilst he is in charge things on the pitch will just stumble on, good players will be sold and cheaper ones bought and the chances of us being truly successful are nil.

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  • Toonboy_84

    Nov 16, 2013 at 11:41 AM

    Comment #8

    Sick of the f#cking adverts on this site. Ed, you really need to sort it out. Used to love coming on here. Now I get all sorts of crap on my Android phone. Downloads of all sorts too. Ruining a good site they are. Please get rid of them.

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  • Charlietoon

    Nov 16, 2013 at 11:55 AM

    Comment #9

    At least it’s not about remy scoring goals and therefore being more desirable to other clubs.

    Ashley has probably sat down and worked out he will make more money off advertising his brand than selling the board space to someone else. It would be nice if he took this into account when looking at his debt as we could easily be paying off a few mill a year if we we selling that space to someone else.

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  • lesh

    Nov 16, 2013 at 12:19 PM

    Comment #11

    Here we go again…. Ashley pocketing money blah blah blah.

    When will some folk realise, any surplus in the club is not his to pocket.

    Let’s not forget that the business that is the football club owes Ashkey £100m plus. And that being so, he’s got every right to call that debt in at any time.

    Don’t get me wrong, I am not an apologist for Ashley and like many have been astonished by the stupidity he’s shown over the years (Wise, Kinnear, Wonga etc etc) but it’s really up to him what he does.

    However if he was less impulsive and appointed credible advisors and officials, things would be so much better.

    Until then…… Same $cheidt different Christ. What joy

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  • Hatem's better than Messi

    Nov 16, 2013 at 12:22 PM

    Comment #12

    We’ll be in a better financial position?

    We?

    It’s Ashley’s NUFC not ours.
    I feel less and less connected to the club.
    My blood is b&w but it isn’t coursing through my veins with passion anymore.

    Instead it is slowly trickling around my body as my support goes into hibernation until Ashley is gone and it? springtime again in Newcastle.

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  • ToonDarnSarf

    Nov 16, 2013 at 12:30 PM

    Comment #13

    Lesh

    Very well said. Ashley made stupid mistakes with KK, not appointing a proper football chairman/DoF, JFK (twice!) and screwing up the relationship with the fans, but it’s a stupid argument to say the money s going into his pocket, the facts show this is untrue. Unlike our previous owners who earned millions from the club from wages, perks and of course selling their shares.

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  • Hatem's better than Messi

    Nov 16, 2013 at 12:38 PM

    Comment #14

    Anyone want to win a cup?
    Want to see Ashley in all the photos?
    Want to see what happens to Pardew’s ego after he wins something?

    I know it’s not likely with Pardew in charge but I can’t stand being in the free SD advertising mid-table limbo anymore.

    I will now take a relegation to get rid of Ashley.
    I love NUFC so much but I am so gutted by the way Ashley runs our club. Sorry lads.

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  • Jail for Ashley

    Nov 16, 2013 at 12:54 PM

    Comment #15

    TDsarf,
    I bet you absolutely loved the way Thatcher dealt with those miners.

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  • Ciaran

    Nov 16, 2013 at 12:57 PM

    Comment #16

    Lesh

    Ashley does take money out of the club, evidenced by the 11 million he took from the club last season. He intended on taking 18 million out of the club this year but that has since been postponed.

    So yes, money that is made by the club does in fact make its way to Ashley’s pockets. Also, given that Rangers merchandise has made its way on to nufc online club shop, it would be interesting to see if the contract is between the buyer and NUFC or the buyer and Sports Direct…

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  • Ciaran

    Nov 16, 2013 at 12:58 PM

    Comment #17

    TDSarf

    If you hate how people make money from selling shares, you must despise how Ashley recently pocketed a cool 100+ million from his recent flogging of SD shares (which have largely increased in value given how much exposure he has received piggy backing on NUFC)

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  • anwarzkm

    Nov 16, 2013 at 12:58 PM

    Comment #18

    toonarmydownsouth:
    the guy has ambitions,lets be patient,i remeber when he(MA) said back in 2010,that he has 5yr plan how to improve this FC,haven’t we settled well since we return from relegation?no doubt yes,so the 5yr strategy is still working,what we need now is some consistency and adapt how to bounce back from painfull defeat,like sunderland.the future is bright..HWTL

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  • ToonDarnSarf

    Nov 16, 2013 at 1:03 PM

    Comment #19

    JfA

    Politics my friend…out of bounds on this blog…happy to discuss anything over a beer with an open minded person but definitely not on here.

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  • ToonDarnSarf

    Nov 16, 2013 at 1:04 PM

    Comment #20

    Ciaran

    I don’t hate people making money from shares. I’m just pointing out the facts. It helps when a person’s arguments are backed by facts.

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  • Jail for Ashley

    Nov 16, 2013 at 1:07 PM

    Comment #21

    TDsarf,
    I’ll take that as a yes then.

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  • ToonDarnSarf

    Nov 16, 2013 at 1:09 PM

    Comment #22

    Ciaran, do you really believe this rubbish or do you just want to cause arguments? I’m frankly tired of contradicting your tiresome bull.

    Ashley loaned the club £29M and has taken back £11M so far. Compare this to previous owners who charged huge interest on their loans and also took large salaries. The latter approach is not uncommon in football.

    As for the Rangers merchandise, all we know is it was on the site for a short period of time and was then taken off. It could have been a mistake and are you suggesting for even a minute that a NUFC fan went to the website to buy NUFC merchandise and decided to buy Rangers stuff instead? Use your brain and explain to me how this could have cost the club any money.

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  • Douglas

    Nov 16, 2013 at 1:10 PM

    Comment #23

    Mike Ashleys life, reson détre, familly, being, whatever, is his child Sports Direct. He manages Newcastle United in a way that best suits Sports Direct. Free SD advertising is one example. I suspect the fact that our commercial income has reduced is because it is channeled to Sports Direct. In short NUFC is not his priority. SD is.

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  • ToonDarnSarf

    Nov 16, 2013 at 1:14 PM

    Comment #24

    JFA

    Just because you might see things in absolutes, some of us like to look at all sides of the argument. I’ve got a view on that topic and suffice to say I don’t agree with what happened but nor do I believe the status quo could have been maintained.

    A bit like I don’t think Ashley is a good football club owner, but neither do I think he’s he devil incarnate.

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  • Jail for Ashley

    Nov 16, 2013 at 1:14 PM

    Comment #25

    Douglas,
    Correct.

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  • ToonDarnSarf

    Nov 16, 2013 at 1:15 PM

    Comment #26

    Douglas

    So you are basically accusing Mike Ashley and NUFC of fraud? That somehow they have hidden this revenue diversion from the accounts? Yeah…that sounds likely…

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  • Jail for Ashley

    Nov 16, 2013 at 1:26 PM

    Comment #27

    TDsarf,
    Well your well balanced neutral views seem to always back Ashley up, no matter how small the storm in a teacup is.

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  • Jail for Ashley

    Nov 16, 2013 at 1:34 PM

    Comment #28

    TDsarf,
    Fraud ???
    What he’s saying is that NUFC is very much secondary in Mike Ashleys priorities and revenue that could be channelled our way is going to SD instead.

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  • ToonDarnSarf

    Nov 16, 2013 at 1:34 PM

    Comment #29

    JFA

    If someone on here was saying that Ashley is a fantastic owner and Pardew could have taken over at Man Utd, I’d be arguing with them too.

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  • Edd Case

    Nov 16, 2013 at 1:35 PM

    Comment #30

    Financially, you have to say, looking back at that Andy Carroll deal…wow, MA got that one spot on..

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  • ToonDarnSarf

    Nov 16, 2013 at 1:36 PM

    Comment #31

    JFA

    No doubt SD is his primary interest because it’s the bigger and more profitable company.

    But if he was channeling revenue from NUFC to SD it would show up in the accounts.

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  • Jail for Ashley

    Nov 16, 2013 at 1:40 PM

    Comment #32

    Not with a very good accountant, not with an Ashley owned company paying peanuts for the burger rights, the reduced revenue is going somewhere.

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  • JackButler

    Nov 16, 2013 at 1:47 PM

    Comment #33

    So can we now expect the additional revenue to be pumped back into the club/squad???

    Or is this now the time that Ashley starts to see the profit of owning NUFC apart from the free advertising for his grubby little retail company?

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  • Jail for Ashley

    Nov 16, 2013 at 1:47 PM

    Comment #34

    Edd Case,
    We’ll just forget about James Milner and the one point needed that got us relegated shall we, great business that !

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  • Jail for Ashley

    Nov 16, 2013 at 1:51 PM

    Comment #35

    JB,
    Contrary to what a lot of people think of us with strong views on Mike Ashley, is that nothing would make me happier than to be proved wrong about the guy, but an eight year contract to a mediocre Pardew and the purchasing of players that aren’t necessarily needed but look to have a sell on price does not fill me full of hope.

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  • JackButler

    Nov 16, 2013 at 1:58 PM

    Comment #36

    Jail

    We want what is whats best for the club, Ashley wants whats best for him and SD and yet there are some who still find a way to agree with everything that he does and has done no matter how damaging it has been to the club.

    Luckily we will all still be around long after he’s a gone though a hopefully a few on here will dissappear with him

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  • Ciaran

    Nov 16, 2013 at 2:25 PM

    Comment #37

    TDSarf

    Find it hilarious how you of all people can talk about people with balanced views and an opened mind when you have the most one sided defensive approach and a mind so closed to criticising Mike Ashley that it renders your very opinion as ridiculous.

    You have never contradicted anything I have said, you just think you have. I think you’ll find no one takes you seriously here.

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  • Ciaran

    Nov 16, 2013 at 2:28 PM

    Comment #38

    Anyone else think it is utterly pointless engaging with TDS? He has proven himself to be one of MA’s puppets whether that is by choice or otherwise. He shows a detachment from club legends, and the views of a large proportion of fans that is alien to the very concept of a supporter and does nothing but attempt to justify the unjustifiable. By engaging with him we are fuelling his need for attention.

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  • daztoon

    Nov 16, 2013 at 2:35 PM

    Comment #39

    Here we go again lesh doesn’t even mention KK but the sad TDS has to mention him again.Not be long before he goes on about will people get over KK and stop bring him up he’s in the past.

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  • cyprus

    Nov 16, 2013 at 2:41 PM

    Comment #40

    Ed,
    Nice to see that there in the States everything is done so cleanly and the rich billionaire owners are so beyond reproach. Why, they pay for everything and even give back to the taxpayers! Why, let’s follow that good ole NFL model 😉

    http://www.theatlantic.com/magazine/archive/2013/10/how-the-nfl-fleeces-taxpayers/309448/

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