Newcastle’s Impressive Financial Results Released


Newcastle have announced today a profit of £9.9M for the year ending June 30th, 2013, which is the last complete financial year of the club.

mike ashley  -6208247

Mike Ashley – owner – financial figures are good

The results were shared at the third Fans’ Forum which took place last night, and the figures show the club is in a very good financial condition.

The club issued statement as follows, which is long – but very detailed and the figures are good:

If you don’t want to go through it drop to the end where we review some of the important figures:

Newcastle United has today  confirmed its financial figures for the year ending June 2013.

United used the Club’s Fans Forum, which took place at St. James’ Park on Monday evening, to share the results with supporters first; giving an overview of the Club’s performance and the context of the figures before filing them with Companies House.

The Club has continued to make positive progress in line with UEFA’s stringent Financial Fair Play Regulations, with player trading, a strong commercial performance and a significant reduction in operational losses contributing to a profit after tax of £9.9M – up from £1.4M  in 2011/12.

Newcastle United purchased six senior players in the period, with Vurnon Anita arriving in summer 2012 and Mathieu Debuchy, Yoan Gouffran, Massadio Haïdara, Moussa Sissoko and Mapou Yanga-Mbiwa all acquired in January 2013. A number of younger players also arrived at St. James’ Park, including Gael Bigirimana, Curtis Good and Kevin Mbabu.

Accordingly, the Club’s cash outlay on players was £28.7M  – up more than 30% on the £19.7M spent in the previous season.

While the Club’s cash outlay on transfers was significantly higher in the period than the £11.1M it recouped on outgoing players, including Leon Best, Demba Ba and Fraser Forster, trading profit on players stood at £10.6M after amortization.

The profit equates to the sums received for players in relation to what the Club initially paid for them, with outgoing players’ values having increased during their time at the Club.

The Club’s turnover rose to £95.9M  – up from £93.3M  – bolstered by a sharp rise in commercial revenue, which is up 24.2%  to £17.1M.  The Club forecasts similar commercial growth in 2013/14 as a result of strong commercial partnerships.

Matchday turnover, which includes tickets sales and hospitality, also rose by 15.9%  to £27.8M, representing a £3.9M  increase from the £23.9M recorded in the previous year.

The figures are in light of strong season ticket renewal figures, with the average Premier League attendance rising to 50,517 in 2012/13 and seven additional fixtures in the UEFA Europa League.

Media turnover, which is related to the Club’s success in the Premier League and UEFA Europa League, was down by 8% to £51M  with a run into the quarter-final stage of the latter competition unable to fully offset the impact of the Club’s 16th-place domestic finish.

Operational losses were reduced from £5.1M  in 2011/12 to just £616K in 2012/13 as the Club continues towards running at break-even and meeting UEFA and Premier League regulations.

The Club’s total wage bill fell from £64.1M  to £61.7M and wage-to-turnover ratio now stands at 64% – down 4%. However, this only includes up to six months of the additional wages of six January purchases. The average wage-to-turnover in the Premier League in 2011/12 was 70%.

While Newcastle United’s use of its overdraft facility stood at £4.5M on 30th June 2013 – up from just £0.3M,  the Club’s debt remains static in the form of a £129M interest-free loan from owner Mike Ashley.

The Club’s board said:

“As supporters will be aware, finances are a significant issue for all football clubs given the introduction of Financial Fair Play into the Premier League in addition to UEFA’s Regulations.

“Complying with FFP continues to be a key influence on strategy and something we have been working hard at over a number of years.

“Everyone at this club wants to finish as high up the Barclays Premier League table as they possibly can. If the club can sustain itself as a ‘top ten’ team year-on-year with a stable structure and the right finances, it gives itself every chance of pushing even further.”

“Matchday and commercial revenue is a key driver because that’s where the Club can compete with – and outperform – its competitors to enhance its spending capabilities.”

“Ultimately the income the Club generates, particularly, given the restrictions of the Premier League FFP Rules, from matchday, commercial i.e. non-TV income, will directly impact on the strength and quality on the pitch.”

“The process requires patience but we remain absolutely committed to growing the Club in a responsible and sustainable way.”

So in short almost all those financial figures are going ion the right direction.

The revenue is up to £95.5M and the profit after tax is up to £9.9M – which is now 10.3% of revenues – very good for a football club.

The commercial revenue – which has been a weakness of Newcastle’s over the last few years, is up over 24% to £17.1M and that could increase by the same amount next year – which would take it to £21.2M – it’s certainly has some momentum in that important revenue item.

And the club is almost even on operational revenue, losing only £666K, down from over £5M last year..

It’s obvious that Mike Ashley financially has the club in an impressive financial position – there’s just no way of getting away from that.

Now we have to persuade him to spend all the profits and invest them straight back into the club,  in the form of player transfers and improvements in the facilities, the Youth Academy and the Scouting network, among other items.

Newcastle have already committed to make the training facilities at Benton some of the best training facilities in Europe and that’s a good start.

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37 comments so far

  • Belfast

    Feb 25, 2014 at 11:51 PM

    Comment #1

    Yesssssssss get in.

    Best result of the season.

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  • Black and White with an army lol

    Feb 25, 2014 at 11:51 PM

    Comment #2

    FFS he won’t spend it’s as simple as that, ppl are deluded when they say the TV money is also there to spend.

    Oh yeah it’s there to spend all right but not on the team

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  • Dingo†®

    Feb 25, 2014 at 11:51 PM

    Comment #3

    Aye!… ill tek that over champions league like

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  • Dingo†®

    Feb 25, 2014 at 11:53 PM

    Comment #4

    Maybe Pards should apply for a Wonga loan and just gan oot and spend the cash himself

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  • John Tudor

    Feb 25, 2014 at 11:53 PM

    Comment #5

    im off now but i can leave with my head held high knowing im from an intelligent proud family of the geordie nation unlike some elitist donks
    ToonDarnSarf // Feb 25, 2014 at 4:05 PM

    JT

    It’s a reference to you. Your ill thought out and ignorant posts are an embarrassment to NUFC fans. You’re just a miserable git who has nothing better to do with your time than whinge on a blog. Why don’t you try being a proper fan?

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  • ToonDarnSarf

    Feb 25, 2014 at 11:54 PM

    Comment #6

    Mister Tuff

    I think we can apply that lack of common sense to certain people on the blog. Not as a general rule but when evidenced.

    As a general rule youngsters are more likely to be passionate and think out of the box while more mature folk are likely to be more balanced. Personally I think I’m in the middle, as I often find myself in life.

    This blog is a frustration as I simply couldn’t imagine getting into a conversation in real life with a 23 year old who would talk to me with as much arrogance and disdain as a certain person on this blog.

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  • John Tudor

    Feb 25, 2014 at 11:54 PM

    Comment #7

    ToonDarnSarf // Feb 25, 2014 at 3:57 PM

    Lukaku will be glad he didn’t join us last summer with total morons demanding that Remy is dropped because he won’t sign permanently. Maybe Newton, Tav, Fergie, Abeid etc. should be dropped because they didn’t sign permanently from our club too.

    Do you guys actually think these things through?
    ToonDarnSarf // Feb 25, 2014 at 4:05 PM

    JT

    It’s a reference to you. Your ill thought out and ignorant posts are an embarrassment to NUFC fans. You’re just a miserable git who has nothing better to do with your time than whinge on a blog. Why don’t you try being a proper fan?

    0
  • Belfast

    Feb 25, 2014 at 11:55 PM

    Comment #8

    Mikey would make a great model for Jacamo so he would.

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  • Black and White with an army lol

    Feb 25, 2014 at 11:55 PM

    Comment #9

    Mike Ashley is not a chairmen he’s an businessmen simple as,

    He is here to make money for himself not for Newcastle, why would he improve the squad when we have reserves? and why would he improve the squad when he’s put the club up for sale?

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  • manxpie

    Feb 25, 2014 at 11:56 PM

    Comment #10

    manxpie // Feb 25, 2014 at 11:54 PM

    tudor again i have not accused you of anything lad!
    so why have you took such offence?
    the troll remark was for someone who hasn’t replied!!!

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  • John Tudor

    Feb 25, 2014 at 11:57 PM

    Comment #11

    no-one demanded merely suggested appealing his pennypinching ideas if he doesnt play he may get no suitors and we could have a chance of his signature this guy railroads people to his way of thinking well not me matey

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  • Black and White with an army lol

    Feb 25, 2014 at 11:57 PM

    Comment #12

    Belfast

    they don’t have his size mate ( it’s the pocket issue for him they don’t have the right depth 😉 )

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  • ToonDarnSarf

    Feb 25, 2014 at 11:57 PM

    Comment #13

    Ibiza

    No. It doesn’t need to be this hard. I don’t think the nitpicking from some fans helps either to be honest. Go back a few years and hardly any fans cared about the accounts.

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  • manxpie

    Feb 25, 2014 at 11:57 PM

    Comment #14

    manxpie // Feb 25, 2014 at 11:50 PM

    jesper well it needs to be doesn’t it?
    we’ll both disagree again and i’d bet my life on it lol but for some reason u riled me more than any other poster which is a joke in its self really
    but i think it was just the way you said something and i believe it was more a difference of understanding than anything else so no problem on my side now?

    double repost! boooooooooooom have some of that!!!!

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  • John Tudor

    Feb 25, 2014 at 11:58 PM

    Comment #15

    the offence is not directed at you i have no truck with you

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  • John Tudor

    Feb 26, 2014 at 12:02 AM

    Comment #16

    This blog is a frustration as I simply couldn’t imagine getting into a conversation in real life with a 23 year old who would talk to me with as much arrogance and disdain as a certain person on this blog.

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  • jesperfuglsang - captain of the lemon crew

    Feb 26, 2014 at 12:04 AM

    Comment #17

    manx…then let bygones be bygones!

    …we may all speak English, but we come from different places and phrase things differently – we also view things differently, which is inevitable.

    Lets just move on and try to learn something from this past experience? and trust me we will disagree 😉 lol

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  • manxpie

    Feb 26, 2014 at 12:04 AM

    Comment #18

    tudor that was a reply to you asking me “who said that not me!”

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  • jesperfuglsang - captain of the lemon crew

    Feb 26, 2014 at 12:05 AM

    Comment #19

    Ibiza…did we really win that game? Beautiful 😉

    …I didn’t watch it! I got the result from the telly afterwards; I had 90 mins. to spend wisely! lol

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  • Ibizatoon

    Feb 26, 2014 at 12:06 AM

    Comment #20

    Jesper…I didn’t watch it either, only caught the highlights.

    TDSarf…Hardly any at all. Quite sad how we’ve all had to dive in to the exciting world of accounting to try and begin to understand what is going on at our club.

    Whilst some will always nit pick, the only reason it’s become as bad as it has is due to the clubs way of dealing with the fans.

    Anyway…I’m off to read the official report.

    Catch y’all later.

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  • Belfast

    Feb 26, 2014 at 12:06 AM

    Comment #21

    It’s all getting very confusing here Tudor.

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  • Mister Tuff

    Feb 26, 2014 at 12:06 AM

    Comment #22

    TDS – one thing that older folk/parents should not do is to remove dreams/ambitions/ideals from those younger than ourselves to do so would be an atrocious act.
    As far as being addressed rudely on a blog -so what -it’s a football blog -we will probably never meet any of our fellow posters. I’m safe with my own belief that if I met a insulting/cheeky blogger in a face to face situation -such buck and lip would not materialise, no it would never materialise – I will not expand my certainty about this on the blog -as it probably would be irrelevant on the blogosphere.. You need to chill.

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  • jesperfuglsang - captain of the lemon crew

    Feb 26, 2014 at 12:07 AM

    Comment #23

    Ibiza…so how’s England these days?

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  • Belfast

    Feb 26, 2014 at 12:08 AM

    Comment #24

    Ashley probably owns jacamo ffs
    black and white army

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  • manxpie

    Feb 26, 2014 at 12:09 AM

    Comment #25

    oh shut up up jesper 🙂

    yeah i agree we’re both fans of this club and thats the important thing and we will see things differently
    but also i think sarcasm comes across here much more easily face to face and its like a different language over t’internet so truce all over lol

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  • Ibizatoon

    Feb 26, 2014 at 12:09 AM

    Comment #26

    Jesper…..Cold mate and a little wet.

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  • John Tudor

    Feb 26, 2014 at 12:10 AM

    Comment #27

    cross thread tds barge straight in boosh had a go as i say i have done nothing wrong in just incensed at tds attitude talking to me as if i am an ignorant local yokel much in the way he talks down to ciaran if im in my later years who is right or wrong i could be 16 hand so could he i could have a ba he could have f all

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  • manxpie

    Feb 26, 2014 at 12:12 AM

    Comment #28

    belfast who said wat where when n where n at what time?
    what did you ask ?

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  • John Tudor

    Feb 26, 2014 at 12:12 AM

    Comment #29

    when tds stops having his digs at me i can consider stopping till then game on

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  • NewcastleMole

    Feb 26, 2014 at 12:13 AM

    Comment #30

    The club released these figures so naturally i don’t believe anything they said.

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  • manxpie

    Feb 26, 2014 at 12:13 AM

    Comment #31

    anyways on topic!………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. could knee give a shite!!

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  • ToonDarnSarf

    Feb 26, 2014 at 12:13 AM

    Comment #32

    Is there an echo in here?

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  • John Tudor

    Feb 26, 2014 at 12:14 AM

    Comment #33

    argh wtf tds oot

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  • John Tudor

    Feb 26, 2014 at 12:15 AM

    Comment #34

    Is there an echo in here?
    Is there an echo in here?
    Is there an echo in here?

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  • jesperfuglsang - captain of the lemon crew

    Feb 26, 2014 at 12:16 AM

    Comment #35

    manx…I do use alot of sarcasm and I need to take responsibility for that…and I do! I just won’t apologies for it – well unless it gets out of line of course, because it is part of who I am and it’s a important part of my language.

    …sadly it can be misunderstood and I need to be aware of that. A few days ago it let to a “confrontation” so to speak between myself and Markakkus. I did try an explain the meaning of my comment, but he thought I wasn’t being sincere!

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  • Belfast

    Feb 26, 2014 at 12:16 AM

    Comment #36

    Is the newcastle mole related to the anfield mole by any chance ?

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  • Belfast

    Feb 26, 2014 at 12:18 AM

    Comment #37

    Stop trying to re invent yourself Jesper.

    Once a kernt, always a kernt.

    0

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