Newcastle’s finances for the year ended last June 30th are very good, with revenues of £95.9M and profits of £9.9M, the biggest profit at Newcastle for a long time, and with the new three-year TV deal starting this season, the money given out by the Premier League for the next three years will on average be around 60% higher than it was for the previous three years.
Ashley – thinks – should I give Pardew £50M or £60M net this summer?
In the previous TV deal PL clubs got between £40M and £60M depending on where they finished in the league, how many times they were live on TV and some other criteria.
The new three-year deal raises those figures to be between £60M and £100M, so not only is the money going up by an average of 60%, but the spread is also greater – it was £20M and it’s been doubled to £40M.
The PL clubs get paid in May once the season is over so the calculations can be made on what each club will receive, and of course if we finish in 9th place we should get around £80M – last year we got around £40M for finishing 5th bottom of the league.
So when you consider the new TV deal and the extra money, and the fact we also got £20M for Yohan Cabaye in January, there could be big money for Newcastle to spend this summer.
So the chances that Newcastle will be in the black and significantly in the black over the next few seasons seems very high, and there should be money to spend in terms of the profits.
And we will need to spend some money this summer because a number of players – Loic Remy, Jonas Gutierrez, Shola Ameobi, Sylvain Marveaux, Gabby Obertan, Dan Gosling and a few other are certain to be leaving the club.
And players like Ben Arfa will have only one year left on their contracts – and may also be sold – so Newcastle get something for the Frenchman, before he becomes a free agent next year.
But the real important questions are how much will owner Mike Ashley give to Alan Pardew to spend in the summer, and how does Mike Ashley plan to use the profits in the coming seasons?
The owner has already allocated big money into turning Benton into one of the best training complexes in Europe, and that’s an excellent move and a big step forward – credit where credit is due.
And it’s also within the owner’s best interests to make Newcastle into a club that can challenge for the top four in the Premier League, and participate in the Champions League – it’s basically an investment in the future.
If Newcastle could do that, then the value of the club would go up significantly, (Mike could sell for a profit!), and the revenues (and profits) would go up too.
That’s not only because of the Champions League money, but also because Newcastle could charge more for their strips deal – and could get more commercial revenues coming in.
So it will be interesting, at the very least, to see how much money Mike Ashley allocates to be spent this summer – and the net is the important figure – not the gross.
On gross spending we generally make a profit in the transfer windows as we did in January – a £20M profit in fact.
If the net transfer money paid out is huge, that may tell us that Ashley’s ambitions for the club have been raised.
We’ll know better when September 1st rolls around, but we are really hoping that Ashley will spend some big money this summer.
Newcastle showed two years ago and Everton are showing this season, that clubs can challenge the big boys like the two Manchester clubs (assuming United will recover from their disaster this season), Chelsea, Arsenal, Liverpool and Tottenham, with some good savvy transfer deals.
We hope that’s what Newcastle will do this summer – and it’s looking like it could be the most important transfer window for Newcastle United in a number of years.
What do you think about this?
Note: Lewis Williams is in his final year at the University of West London (UWL) studying for a BSc (Hons) in Construction Management, and he is busy on his dissertation on Site Waste Management Plans and he has a survey he needs filled out.
This survey is for anyone who has been part of a construction project (past or present) that used some form of waste management on the project. See if you can help him with they survey here.