Newcastle’s revenue in the last financial year through June 30th, 2013, was £95.9M and the profits after tax were £9.9M, maybe more profit then the club has ever made before.
Money money money
And those figures were boosted by two items that are very important:
- There was an increase 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.
- Operational losses were reduced from £5.1M in 2011/12 to just £616K in 2012/13 as Newcastle continues towards running at break-even, and therefore meeting UEFA and Premier League regulations.
The financial year from July 1st last year through June 30th this year, is going to be even better, much better, because we’ll get around an additional £40M from the new Premier League deal.
Last year it was only around £40M in total from the PL, because we finished 16th in the league and it was the old deal, but this year - with the much higher revenue given out and Newcastle likely to finish either 8th or 9th, the amount will be double that – at around £80M.
Newcastle will also gain from the transfer side of the business, because we have only spent on two loan deals, one for Loic Remy and one for Luuk de Jong, and yet we have sold a number of players including Yohan Cabaye for £20M, and we have also sold other players for much less – like James Perch.
The transfers will be amortized, but even last year when we brought in five new Frenchmen, we still made over £10M in the transfer market.
With Newcastle’s operational expenses seemingly well under control and more money coming in from the commercial revenue side, Newcastle will have much bigger revenues – mainly because of the increased Premier League money, but also the profits are going to be much bigger than the £9.9M announced for last year.
In fact the revenues and profits are likely to be the highest ever for Newcastle United when they are announced in twelve months.
Remember that transfer deals this summer are made from July 1st – so they are in next year’s financial figures.
Now we need to take the £9.9M profit from this year, and whatever it is next year and make sure it’s all invested back into the club.
If we do that Newcastle will have a much better chance of doing well on the playing field, which is significantly lagging behind the financial side.
The financial side is very impressive.
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