In the last financial year Newcastle made a good £9.9M profit on revenues of around £95M, and there’s every chance that at the end of this month, when the current financial year finishes, Newcastle will have their highest revenues and highest profits in the history of the club.
Mike Ashley – will not spend the money available
In the last financial year we got around £45M from the Premier League for finishing 16th, and last month we received a massive £79.5M for finishing 10th with the new three year deal – so there’s an increase of about £35M.
And that should be a straight addition to both the revenues and the profits, assuming our costs are about the same as last year.
And we also have extra revenue and profit from the new four year Wonga deal, which we are told is the best ever strips deal Newcastle have had – and in the Fans Forum meetings we were told the commercial revenue is at last starting to tick up a bit at the club.
So from what we can tell Newcastle could have around £130M in revenue and as much as £50M in profit when the financial figures for 2013-2014 are finally released.
Mike Ashley will need around £300M if he sells Newcastle to get his money back – and that £300M includes the £129M Newcastle have in interest-free loans from the Billionaire.
But that has to be offset by the millions in free advertising the owner gets from all the Sports Direct signs that adorn the stadium.
But with the likelihood that Newcastle will be making big money from the new Premier League TV deal for the next several years, it makes Newcastle United a much better financial proposition than it was only a year ago.
Mike Ashley has owned the club for seven years – and while he has done very well to get the financial picture into great shape, he doesn’t seem to be willing to keep the traditions of the club of the last 20 years – which are to have a top side challenging for a top six position in the Premier League.
If he would only spend the money we could build up a very good side – and quickly too.
But as long as he refuses to do that – we live in hope that some rich Billionaire out there can come in with a bid that will buy out the English Retail Tycoon, and put Newcastle back on the right track again.
There’s always hope.
That’s true, isn’t it?