Will Mike Ashley Ever Loosen The Purse Strings At Newcastle?


The Deloitte Annual Review of Football Finance has shown that for the first time ever, the combined revenues of the 20 clubs in the English Premier League have broken past the £3B mark.

mike ashley white shirt

Newcastle owner Mike Ashley – will he loosen the purse strings?

But the Premier League clubs also pay out huge wages to their players, which will have an impact on the profits, and the average wage of a Premier League player in the last financial year was £1.6M a year.

The new TV deal for Premier League clubs was worth over £3B, and it results in clubs in England’s top division getting anywhere between £60M and  £100M, depending mainly on where each club finishes in the league table – and that’s up from £40M to £60M in the previous three-year TV deal.

That means each club is getting around 1.6 times more money than they were in the previous three years – an average increase of £30M, so now we all know why there’s so much panic when teams are lingering near the bottom of the Premier League – it’s all about money – just in case you didn’t already know that.

Dan Jones is a Partner at Deloitte and he said this in the report:

¨Once again the global appeal of the Premier League has continued to drive commercial revenue growth, particularly at the highest ranked Premier League clubs. Match day revenue also increased by 6% with fewer unsold seats at Premier League games than ever before.¨

‘The entry of BT Sport into the market to compete with BSkyB has applied huge upward pressure to broadcast revenue – from the 2013/2014 season onwards each domestic live game on average generates broadcast revenue of £6.5M.¨

¨The signs are that most clubs are adopting a more financially robust and balanced approach to the way they run their businesses, and they must continue down this path if they are to safeguard the long term financial health of the game.¨

And in the US,  NBC Sports has done a deal to broadcast all the Premier League games live for the next three years, and the Premier League games seem to be catching on in the US, and – dare we say it – are even becoming popular.

Deloitte’s senior Sports Business Consultant Austin Houlihan has predicted Premier League revenues will surpass £4B for the 2014/2015 financial year, as extra broadcasting money is being added.

The average wages for all Premier League clubs was  71% of revenues, which is high, and why a number of PL clubs do not make a profit, although in the last financial year Newcastle made £9.9M in profits on revenues of around £95M.

Newcastle was one of 13 of the Premier League clubs who made a profit in the financial year 2012/2013 compared to only 10 in the previous year – Newcastle made a profit then as well.

Deloitte said that the aggregate (total) net debt of the clubs grew by £139M  to around £2.5B, and like in Newcastle’s case that was driven up by interest free loans from Billionaire owners, and the total of those loans was £1.6B.

£2.5B in debts means the average of the 20 PL clubs is around £125M, and Newcastle have around £130M in interest free loans from Mike Ashley, and that’s our total debt.

UEFA’s Financial Fair Play rules will soon ensure that PL clubs break even,  otherwise there will be penalties to be paid.

And we have recently seen Manchester City were fined close to £50M, and had their European squad reduced from 25 to 21 for next season, for not abiding by the FFP rules over the last three years.

But given they have spent £1B Gross on their players over the last six years,  and won two Premier League titles in the last three years – they will think it was all worthwhile.

They should have been banned from playing in Europe next season, which is what UEFA President Michel Platini said the punishment would be,  when he first introduced FFP a few years ago.

Newcastle are in  a terrific position financially, as good as any club in the Premier League, but we are nowhere near the top six as far as league position is concerned.

Saying there’s something wrong with that is a huge understatement.

And here’s the big question – will Mike Ashley ever loosen up the purse strings at Newcastle?

If there was ever a time to do it – it’s this summer – especially when we have received close to £100M in revenues this year – almost £80M from the Premier League last month, and £20M for Yohan Cabaye in January.

And given our costs have remained largely unchanged from the last financial year, those increased revenues this financial year – should go to the bottom line – and show up as profits..

And what do we do – we bid a measly £6.5M for our top transfer target – Remy Cabella. 🙁

Comments welcome.



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131 comments so far

  • Belfast

    Jun 5, 2014 at 4:07 PM

    Comment #1

    After a long hard think, I’ve decided the answer is no.

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  • Our Toon

    Jun 5, 2014 at 4:07 PM

    Comment #2

    That’s apparently what the revised bid is reported to be at…..could be utter rubbish though!!

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  • Belfast

    Jun 5, 2014 at 4:10 PM

    Comment #3

    Big thank you to Bt sport for making the problem ten times worse than it was before lol

    Needs to be nipped in the bud at some stage. Really unfair on the clubs in the championship, when the teams that have been relegated have that much money to play with.

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  • toon22

    Jun 5, 2014 at 4:12 PM

    Comment #4

    Since MA bought the club he hasnt ever spent big,he might have gotten a bunch of cheap french players but at most he has spent about 15/20 million.
    This window we wont spend what we got for Kebabs.
    The tv money is trousered not one penny will ever go to pay the “loan”why would it.Why would he leave himself having to pay fro all th tatty adverts.

    The guy is a leach a big fat greedy leach.

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  • jesperfuglsang - captain of the lemon crew

    Jun 5, 2014 at 4:13 PM

    Comment #5

    Sorry Belfast….thought it was fitting 😉

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  • Graeme

    Jun 5, 2014 at 4:14 PM

    Comment #6

    The only ambition is to remain in the Premier League – I wouldn’t suprise me in the slightest if our only signings are the boy fro Tennerife and Collback from the scum.

    If we are near the bottom 3 come December, we can expect a few signings to ensure we stay up. We are no longer a Football Club, we are an advertising medium for FCB’s main companies.

    A shambles of a club.

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  • Black and White with an army lol

    Jun 5, 2014 at 4:14 PM

    Comment #7

    Our Toon

    if there were reports Newcastle put another bid in for 8 million it’s probably correct in fact it’s probably the only thing that’s true when it concerns finance.

    it’s sickening though considering that French Chairmen wants 12 million and MA offers 10 million, you wonder why we don’t do business well when bringing players in

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  • the truth will out

    Jun 5, 2014 at 4:16 PM

    Comment #8

    belfast best wait till cashley gets his drop money to spirit away

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  • Black and White with an army lol

    Jun 5, 2014 at 4:17 PM

    Comment #9

    here’s a thought guys why don’t we protest against BT sport and Sky to stop showing Newcastle on TV?

    this will surely hurt MA & CO 🙂

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  • the truth will out

    Jun 5, 2014 at 4:17 PM

    Comment #10

    STAND UP
    not a penny more

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  • Black and White with an army lol

    Jun 5, 2014 at 4:21 PM

    Comment #11

    we all know the TV money ain’t going to be spent on improving Newcastle

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  • Belfast

    Jun 5, 2014 at 4:21 PM

    Comment #12

    It’s a piss take.
    A team could go a whole season without picking up a point, get relegated to the championship and have 60 million in the bank lol

    Then they get parachute payments on top of that.

    Think it will crash and burn at some stage though. (hopefully)

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  • the truth will out

    Jun 5, 2014 at 4:24 PM

    Comment #13

    belfast that could be us

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  • Black and White with an army lol

    Jun 5, 2014 at 4:25 PM

    Comment #14

    Belfast

    aye mate MA has took this gamble for 2 seasons now and like the old saying “third times the charm” this could be his downfall and I as well as many others from around the world will be the ones who will have the last laugh 🙂

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  • Our Toon

    Jun 5, 2014 at 4:26 PM

    Comment #15

    Belfast

    Not to many teams that get relegated from the prem come straight back up mate. So it doesn’t look like it makes a massive amount of difference to these clubs, Cardiff will defo be back though and probs Fulham because they have RICH owners. Where does the line get drawn on this subject though?

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  • Plaigombi

    Jun 5, 2014 at 4:26 PM

    Comment #16

    O course he won’t let go of the purse strings – he is using the club to make money for himself, nothing else. The current situation suits him just fine. The ‘man’ is nothing but a parasite.

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  • Black and White with an army lol

    Jun 5, 2014 at 4:31 PM

    Comment #17

    Our Toon

    good point mate and for Newcastle I think we won’t come back up when it happens because with Cardiff & Fulham they have ambition and keep improving there squad with players and managers and are willing to spend to make this happen.

    but with Newcastle though when the time comes ( hopefully soon ) there will be a billionaire tycoon out there who sees massive potential in Newcastle and take us forward

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  • why oh why

    Jun 5, 2014 at 4:31 PM

    Comment #18

    Yes I think he will
    People may be surprised

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  • Our Toon

    Jun 5, 2014 at 4:32 PM

    Comment #19

    Black & White

    That’s why the Montpellier owner hates us

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  • Black and White with an army lol

    Jun 5, 2014 at 4:33 PM

    Comment #20

    I honestly don’t think MA could survive relegation again with the loss of money last time it happened

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  • Black and White with an army lol

    Jun 5, 2014 at 4:34 PM

    Comment #21

    Our Toon@19

    as well as many others

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  • Black and White with an army lol

    Jun 5, 2014 at 4:34 PM

    Comment #22

    why oh why

    and why?

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  • Black and White with an army lol

    Jun 5, 2014 at 4:39 PM

    Comment #23

    I don’t think MA will ever loosen the purse strings simply because it’s made out of Titanium

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  • wynsleap

    Jun 5, 2014 at 4:41 PM

    Comment #24

    Toon 22 @ 4
    Mike Ashley hasn’t spent ANY money on players since he took over the club. He is UP to the tune of around 10 mill. or more, I think (someone might correct me on the right fig.)
    Why we had to get a greedy billionaire who doesn’t spend a penny our way is our gross misfortune.
    The guy is supposed to be a brilliant businessman yet he doesn’t seem to have the common sense to realise that by having a modicum of ambition and sending some decent money he can recoup it through winning things, a better placing in the PL and more money from TV exposure. Let’s face it – who wants to watch the crap on TV that we’ve been putting out lately?
    The only thing Ashley is good at is taking money out of the club to fund his SD baby and being a b*****d.

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  • Black and White with an army lol

    Jun 5, 2014 at 4:42 PM

    Comment #25

    sorry Adamantium not Titanium

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  • toon kk

    Jun 5, 2014 at 4:43 PM

    Comment #26

    The club’s hardly worth supporting anymore.
    How can you support a club who doesn’t even value it’s own fans.
    I will always follow Newcastle, but no way am I handing a penny into the fat mans hands when we get NOTHING in return.

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  • Nedders

    Jun 5, 2014 at 4:47 PM

    Comment #27

    Of course he won’t. To do so risks making his sideline advertising project (NUFC) complicit with the profitability of his main business (Sports Direct). This in turn will have an adverse effect – imagine if, as a Sunderland fan, you thought spending money at Sports Direct could have a positive impact on NUFC. – would you spend money there? Same applies to any other club, why would you want to ‘prop up’ a rival? Makes no sense – Mike Ashley has to keep a Berlin Wall between SD and NUFC, hence why it’s run on the money it generates alone and he doesn’t put one penny in from his own pocket, or from the holding company’s (MASH) profits. Disgraceful, I daresay it is compliant with all corporate regulations but the sad fact of it is that NUFC must remain mediocre to disguise its’ links to Sports Direct.

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  • Black and White with an army lol

    Jun 5, 2014 at 4:48 PM

    Comment #28

    toon kk

    true mate, Newcastle ain’t United any more so why should we treat it as it is

    Newcastle Direct should be the new name now because Newcastle seem to go only 1 direction ( down ) and we play Direct, Simples.

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  • why oh why

    Jun 5, 2014 at 4:50 PM

    Comment #29

    Because I think he will
    That’s why no other reason
    I live in hope my friend .
    And to the silly one I say . How dare you say our own toon aren’t worth supporting . Blastfemy I tell you !

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  • Black and White with an army lol

    Jun 5, 2014 at 4:55 PM

    Comment #30

    why oh why

    they aren’t worth supporting, people say support the team not the regime but when you support the team you pay the regime.

    Newcastle doesn’t support us so why would we support them

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  • Our Toon

    Jun 5, 2014 at 4:55 PM

    Comment #31

    Black & White

    careful mate MA might get wind of the name change and enforce it….like the whole Hull City debacle!!

    We can’t be untied as fans never mind about us being united as a club!!

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  • jazzyp

    Jun 5, 2014 at 4:56 PM

    Comment #32

    Feel sorry for the Ox, Looks like he’s set to miss the world cup. Looked one of our best players lastnight as well !

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  • Our Toon

    Jun 5, 2014 at 4:56 PM

    Comment #33

    I’ve boycotted lads didn’t pay to watch a game last season but still supported the team!! Personally I feel that’s the answer

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  • Black and White with an army lol

    Jun 5, 2014 at 4:56 PM

    Comment #34

    why oh why

    read post 27, this is why MA won’t spend

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  • Mister Tuff

    Jun 5, 2014 at 4:57 PM

    Comment #35

    Mr Tubbs……………………………………OUT
    Percy Parsnip……………………………..OUT
    Fans of Adam Ant ………………………OUT
    Jam tomorrow brigade…………………OUT.

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  • jazzyp

    Jun 5, 2014 at 5:01 PM

    Comment #36

    Even Aston villa who are up for sale are making signings, Yet we are still Lumbering along as usual.

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  • lesh

    Jun 5, 2014 at 5:03 PM

    Comment #37

    I could live with MA being frugal with expenditure if he said that most profits were to go to clearing his loan to the club. And if he followed that by reducing his asking price by £130m, then there’s a better chance of a buyer coming in.

    Mind, any potential buyer’d have to be vetted and interviewed by a fans’ panel before being deemed acceptable.

    Now there’s something for NUST, T4C, et al to think about! 😉

    From Previous Thread re Ben Arfa:

    lesh

    June 5, 2014

    Ben Arfa seems to be presenting problems not dissimilar to those that existed between Bellamy and Bobby Robson.

    Different problems I appreciate but Sir Bobby’s approach was to ignore Bellamy’s cheek, let it ride over his head and let him do his stuff on the pitch.

    Much more similar to Ben Arfa, Jimmy Smith (the player, not the blogger [Unless they’re one and the same], so unpredictable and at times apparently lazy (track back, wozzat?) but on his day, magic. Joe Harvey, like SBR, played on Jinky’s strengths.

    Now if only the our master man-manager manager could learn to live with Benny’s strops and exploit the positives in his make-up.

    It’d be a shame if he’s gotta go but if it’s the case he doesn’t fit with the players around him, then maybe it’s best he does go.

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  • lesh

    Jun 5, 2014 at 5:08 PM

    Comment #38

    Mr Tuff…..

    As it seems you’re on an ‘OUT’ crusade, how about….

    Gary Glitter OUT (well, at the moment!)

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  • Tsunki

    Jun 5, 2014 at 5:12 PM

    Comment #39

    Forget HBA Pardew just doesn’t comprehend the player and the team that would have to be made to fit that kind of player. Shame but we’re not getting another manager so plod on…

    Colback? Meh, Meh and thrice Meh! Now THAT Is the kind of player Pards wants, will work anywhere for reasonable money, keeps his mouth shut until called on to back up the boss in his blame deflection statements.

    Life’s not great when the only thing to look forward to is the hammering of the England team in the world cup , followed by a dismal bargain hunt transfer window, a preseason radging by a few nondescript foreign and lower league outfits, and starting the first ten games of the season rocking the bottom of the league.

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  • Tsunki

    Jun 5, 2014 at 5:16 PM

    Comment #40

    Oh and I finally cancelled my Sky sub as well as of today no more need to wait for the three scheduled NUFC games in a season, the ones in which we are toasted alive in. They couldn’t believe I wasn’t simply holding out for a deal. No, I said, I’m sick of shelling out for your rubbish, if I want to see a load of tat I’ll go to SJP I said….

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