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News and Commentary On Newcastle United Football Club By Ed Harrison, A Proud Exiled Geordie And Lifelong Fan

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This Year’s Financial Results Good – Next Year’s Massive

8:19 am, Wednesday, February 26th, 2014 by Dr. Ed Harrison · 8 Comments

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.

UK pound note

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.

Comments welcome.

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Tags: Financial Fair Play · Financials · Newcastle News · Other News · Transfer News and Rumours



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8 responses so far ↓

  • 1 Himanshu Dhingra // Feb 26, 2014 at 8:22 AM

    It is very pleasant all round. Except on the pitch.

  • 2 Himanshu Dhingra // Feb 26, 2014 at 8:24 AM

    Ashley too money out of the club 18 Million I think. Still the debt is same.

  • 3 Jail for Ashley // Feb 26, 2014 at 8:30 AM

    Is there any point in posting at this time of day, you finish a post and the thread changes !

  • 4 nut meg // Feb 26, 2014 at 8:30 AM

    repost
    croftus @59
    No i’m not kidding. It’s been spoken about on here many many times.

  • 5 The next Mike Williamson // Feb 26, 2014 at 8:35 AM

    It will look good for any potential investor

  • 6 Laurent Robert 32 // Feb 26, 2014 at 8:35 AM

    So we’ve made a profit. It doesn’t matter what the bank balance is like if we are still putting in dreadful team performances. If that money saved isn’t spent on maximising the team, then there isn’t any real point about crowing over savings. They are wasted almost as much as manageable debt.

    Let the accountants hadly the money. We, the fans, support the football being played, not the formulas in an Excel spreadsheet.

    Sign Messi and Pardew would deem him too small to play up front. He’d be back on that wing in no time. See, Cisse, Campbell, Tevez, Ba.

  • 7 Blackley and Brownlie // Feb 26, 2014 at 9:10 AM

    People keep blaming Mikey for the cost to the club of his failing to do due diligence as if he’s crucified the club. The club was already carrying the debt. How can Mikey be to blame for hidden debts that the previous regime racked up?

    Ah, well, he didn’t know about them so he had to loan the club money.

    So the club benefits with an interest free loan. Why blame mikey for giving the club a benefit?

    Ah, well, SD get free advertising so its not free. It’s a con and SD should be paying the going rate.

    So if someone offered you an interest free loan saving you over £10M a year OR full payment for advertising worth say £2m a year, you would take the latter otherwise it’s a con, would you?

    People complain that mikey won’t open the purse and yet the debt increased massively when we got relegated. That debt is still there. If we buy players every time fans say we should because they’re looking purely at the football side, the debt will continue to increase.

    We might not always be so fortunate to have an interest free loan (mikey could start charging interest at any time) and that would be hellishly expensive for the club leaving less for new players. So when fans shout for advertising fees and slag mikey off for being greedy, they should be careful what they wish for.

  • 8 Whumpie // Feb 26, 2014 at 12:13 PM

    Commercial revenues are still massively down from when Ashely took over and pathetic for a club with such a strong following and brand.

    These figures just use the hike in TV money to mask the huge mess they’ve made of the brand and the reveues it should bring in.

    Even allowing for the money lost to free SD advertising they have been an abject failure in building revenues, while others have shot ahead.

    These are terrible figures once you actually look at them properly.




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