Newcastle revenues for the financial year ended last June 30th declined over the previous financial year, and our total revenues were €111.9M (£91.7M) compared to €115.3 (£94.5M) – using £1 equals €1.22, and that’s a drop of £2.8M.
Mike Ashley – commercial revenue increase vital to future
The top five clubs revenues were as follows:
Real Madrid €518.9 (£425.3) Barcelona €482.6 (£395.6) Bayern Munich €431.2 (£353.4) Manchester United €423,8 (£347.4) PSG €398.8 (£326.9)
And as we mentioned yesterday that decline was due almost entirely to our drop in the Premier League position from 5th position to 16th position, and when you think that last season each position in the Premier League was worth around £800K – then that’s (£11*800) – which is around £8.8M decline in revenue.
And another way we illustrated that was for the prize money given out for last season , and we would have received another £8.3M if he had finished 5th rather than 16th in the league.
So we can say we lost around £8.5M on average because of our poor showing in the league, and since we lost £2.8M, we had extra money coming in from the Europa League, and increased commercial revenues from the previous financial year.
But that’s our second weakness – the commercial revenues which have become huge at other clubs.
As an example of this, PSG since being acquired by Qatar Sports Investments in July of 2011 has quadrupled their revenues from €99.5M (around where Newcastle usually are) to a massive €398M – and a large percentage of that is due to massive commercial revenue increases.
In the last financial year alone, their commercial revenue increased by a massive 82% (€114.8M – £94.1M) – and a number of those investments come from Qatar.
The commercial revenues of the top four English clubs are as follows:
Manchester United £117.6M Manchester City £112.1M Chelsea £70.5M Arsenal £52.5M
Compare Newcastle’s commercial revenue for last financial year of 13.7M, and that’s one area where we are sadly lacking behind the top six clubs in England.
That could be increased significantly if Mike Ashley would pay Newcastle for all the free advertising his company gets at St. James’ Park – and to say they are only in place until other advertisers come in, is little short of nonsense – and a better reason than that needs to be given by the club.
That commercial revenue will be increasing with the new deal with Wonga, but not by much, with the estimate for this financial year ending June 30th, being only around £17M.
So those are the two areas where we can increase Newcastle revenues – by finishing high up in the league table, and by some way increasing our commercial revenues which are linked to the world-wide brand of Newcastle United – which is not where it should be right now.
And certainly it’s nowhere near where it was when Kevin Keegan and Bobby Robson managed the club and we were one of the best four clubs in the Premier League.
And the good news this year is that the Premier League is paying out between £60M and £100M to PL clubs, depending on their league positions and a few other things, and each position in the league will be worth around £2M rather than £800K.
So if Newcastle finish 8th we could be getting around £84M in May, and that’s more than double what we got last year in total from the PL – which was around £40M and £55M in the previous season.
Of course that doesn’t help us progress towards challenging the top six clubs in England.
And at least £35M each year could come from the Champions League – if only we could qualify for that by finishing in the top four of the English league.
That will take some time – maybe a long time. 🙁
Note: There is a special MJK Sports event coming up like we’d like to publicize. On May 9th there will be an evening with Kevin Keegan at the Lancastrian suite in Gateshead. You can get the details about the event and buy your tickers here.
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