Newcastle Have Big Money Available – Here’s Why


We’ve reported a few times since last summer, that when Newcastle’s  financial results for the last financial year – through June 30th – are announced next month, we should have record revenues and record profits.

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Mike Ashley – great financial results – but poor results on the pitch

For the previous financial year, 2002-2013, we had revenues of £95.9M and profits after taxes of £9.9M.

There are a couple of things that will see this year’s financial figures much higher than that – one is that during the financial year – when Joe Kinnear was in charge of transfers we paid for only two loan deals – Loic Remy and Luuk de Jong – maybe £3M in total.

We signed no players permanently in the last financial year July 1st, 2013 through June 30th of last year.

And this is the first year that we are in the new Premier League TV deal, and Newcastle  received £79.5M from the Premier League last May for finishing in 10th place – and that’s about £35M more than we received the year before.

So if you assume Newcastle’s costs have remained steady year over year, and you also take into the account the extra money from the Wonga deal – then it’s not difficult to see why revenues could increase to around £135M and profits could be as high as £50M.

Of course some transfers are amortized over a number of years, so there could be a cost there, even though we had  no permanent transfers.

But at the very least it will be interesting to see the final figures, because they should be very very good – in fact they should be stellar.

But while the financial figures will be great, the team is not great and is still medicare and mid-table.

If Mike Ashley would simply promise to invest all of the profits back into the club,  there could be some big money available for players.

If he would do that Newcastle could quite quickly build a very strong side.

But there is no sign from the owner that he wants a successful team – just stellar financial results – which does nothing for Newcastle fans – including us.

We want a top side fighting for a top six position again.

But nobody should be telling the fans that money is not available and that we cannot compete with the big clubs – it’s just not true.

Comments welcome.

Note: Please see if you can help the Northumbria Police to find this missing person – thanks.

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29 comments so far

  • ilovetoon8788

    Jan 5, 2015 at 9:00 AM

    Comment #1

    i just don’t like the way football dinosaurs are being linked with us and it’s seems more and more likely they are the ones who are going to get the job.

    football has evolved too much that these people though did decent in the past will no longer be able to take our club forward. coaches like Carver, Steve Stone hopefully will be gone when a new manager takes over.

    we need young fresh continental coaches like Tuchel or Galtier or someone like this. No to Hoddle and co.

    Might as well Ashley hire Keegan back or Kenny Daglish, Peter Reid, Chris Coleman while we are at it.

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  • Markaccus

    Jan 5, 2015 at 9:03 AM

    Comment #2

    On GH. Same as Pardew really, although we would possibly see better football for similar results.

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  • Laurent Robert 32

    Jan 5, 2015 at 9:07 AM

    Comment #4

    Lilo, I’d agree that it could have been better and I don’t know why the other group pitched in with a different time. That was silly in my opinion.

    However, even though only a few thousand left, including me, it still made media news via newspapers and TV plus it got people talking about why a lot of the fans are unhappy with Mega Belly Man and his incompetent puppet.

    If it wasn’t organised even to that level, then nobody would have done anything and it would have seemed like a relatively normal game. Although it wasn’t maximised, it is still part of history that a section of the fans walked out for that game. The ones who did shouldn’t be the farce, the ones who stayed, albeit their choice for whatever reason, were the ones who chose not to voice their displeasure and limit the potential effect.

    Regardless of two times, people walked out and that was the main objective and it received a lot of coverage. When you were outside it looked the game had pretty much ended there was that many coming out.

    It was all there for people to make a statement by walking out. They didn’t all do it, yet I don’t believe they are happy with the situation either. The lads at NUFC.com stayed and they aren’t happy with it. I wasn’t even going to go but I wanted the visual impact of me being another walking out and the audible hostility over two blank seats for the match where thousands have turned up and where the tickets are already paid for.

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  • Ian Toon

    Jan 5, 2015 at 9:07 AM

    Comment #5

    The football dinosaurs are those still harping on about Pardew. We need to move on – we have enough problems of our own .

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  • jesperfuglsang - capt'n awesome of the lemon crew

    Jan 5, 2015 at 9:11 AM

    Comment #6

    Lets just hope the Hoddle rumor are just that!

    …we will most likely be linked to plenty more before the end of the week.

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  • Jail for Ashley

    Jan 5, 2015 at 9:11 AM

    Comment #7

    ObtM,
    That’s a huge factor in the apathy of what’s happening, that huge fan base that for years couldn’t get hold of or afford tickets have just replaced those who have stopped going and as you say they’re mainly dads taking their kids and neighbours kids.

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  • Markaccus

    Jan 5, 2015 at 9:11 AM

    Comment #8

    Ian

    As long as you dont mean me. I was merely comparing a possible incumbant with our previous manager.

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  • Consett Mag

    Jan 5, 2015 at 9:12 AM

    Comment #9

    The job going is a head coach – not a manager.
    For the understanding of the game, the understanding of tactics to win a game, and the coaching of young players who need directing in the skill and performance, I can think of no-one better than Glen Hoddle.

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  • beermonkey

    Jan 5, 2015 at 9:13 AM

    Comment #10

    Lilongwe

    what is the going rate for a business that makes £50mill a year and could make more if we got our shirt sales and catering and then there are player sales as well

    £300 mill was the figure when making a loss

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  • Lilongwe Geordie

    Jan 5, 2015 at 9:14 AM

    Comment #11

    LR32,
    You misunderstand. I am in no way saying the fans who walked out (or those who stayed) were a farce. It is the organisation that was farcical. How difficult is it to get 2 groups t agree a time? It just seems like egos clashing to me. Why either group couldn’t just say that for the bigger picture we will go with the other groups time, rather than stubbornly sticking to their minute.

    Again the keys to forcing Ashley out are unity and having a buyer ready to step in. With just unity it will not happen. With just finance we could see the back of Ashley, but that would be more on his terms than forcing him out.

    A lot is going to hinge on the outcome at Rangers I feel as well.

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  • Essex Geordie Bill

    Jan 5, 2015 at 9:14 AM

    Comment #12

    Hoddle reminds me of Tony Blair, great orator and personality before he was elected but when it came to managing the country turned out to be a Janus type of character.
    Not saying that Hoddle would necessarily be that type of character, he certainly comes across as a person who could do the job but his history aint good. Perhaps a lost cause might be what he needs, yes that’s how I see us at present.

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  • Markaccus

    Jan 5, 2015 at 9:15 AM

    Comment #13

    Hoddle would not be my choice from a pot of world wide available managers, however, from Ashleys “tattie pot” of managers, he would probably be at least in my top 5. This reflects how poor the class of manager i think Ashley will be after.

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  • Lilongwe Geordie

    Jan 5, 2015 at 9:18 AM

    Comment #14

    Beer,
    I reckon he would take £500million at the minute. The market isn’t there to go much higher – Lerner couldn’t shift Villa for £100million or so in the summer.

    I don’t know if Red Bull are in the market for a team in England still but they have the finance to do it. Drawbacks here are they own several European teams, so could fall foul of UEFA Competition integrity rules, plus they rebrand all their sides to have Red Bull in the name. Newcastle Red Bulls anyone?

    There was talk of a Qatari group looking at Prem clubs recently as well.

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  • Markaccus

    Jan 5, 2015 at 9:20 AM

    Comment #15

    EGB

    I thought he was unlucky with england. We played quite atracking under him, and he seemed to favour a bit of flair over too much hard work. The likes of Anderton and Owen actually added a bit of excitement. He only used one DM (usually batty) and Scholes was given free reign. I still think he is not the right guy, but at least we would probably see decent football.

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  • Taff the Mag

    Jan 5, 2015 at 9:20 AM

    Comment #16

    Firstly, well done Palace, secondly why would Mr Stashley change anything, the man is a brilliant business man, 51-52,000 through the turnstiles every home match, free advertising for his Sports Direct empire, buy players for 2-3 mil and sell on for a tidy profit ,,his policy is “if it,s working do,nt fix it”, so let,s not hold our breath on a top class manager arriving at the club anytime soon same old dross

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  • Ian Toon

    Jan 5, 2015 at 9:21 AM

    Comment #17

    Laurent- the organisers and those involved at NUST were ego driven and intent on promoting themselves. You only need to recall their postings on here.
    They were not the sort of poster boys to capture the hearts and minds of fans who are first and foremost toon fans.
    Badly organised and not the right people operating for the right reasons. There was neither a mission statement nor a calendar of forthcoming activity in order that fans could see a programme devised to have significant progress over a given time scale. It was instead something put together over a few bevvies in the pub. Plane amateurish – seriously why would any discerning toon fan want to be associated with failure.

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  • Lilongwe Geordie

    Jan 5, 2015 at 9:22 AM

    Comment #18

    Ed,
    I’d imagine a large chunk of those profits are currently ring fenced for the new training facility.

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  • Laurent Robert 32

    Jan 5, 2015 at 9:22 AM

    Comment #19

    Lilo, yeah. I know what you mean though. Just adding in that regardless of dual times, which was, like you say, stupid, it could have been better as the main objective remained the same – leave your seat and walkout during the game.

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  • Ian Toon

    Jan 5, 2015 at 9:23 AM

    Comment #20

    Mark- No I didn’t mean you .

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  • TheDrewid

    Jan 5, 2015 at 9:24 AM

    Comment #21

    Indulge me a moment on this completely fantastical and hypothetical scenario…..

    What if, just what if Mr Ashley has been playing the big picture the whole time? Slowly manoeuvring his pieces around the board whilst NUFC steadily grows into an economic powerhouse that is able to launch its own, self sufficiently funded attack on the premier league. If (and it’s a fusking great if)that was the case, would you all then hail him as a visionary hero, or still find something to berate the fat b*****d for?

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  • Laurent Robert 32

    Jan 5, 2015 at 9:28 AM

    Comment #22

    Ian, it wasn’t great at all, no. As I said though, the raw message was there for all to see and it did make its way to newspapers and media prior and post-game.

    Simply, leave your seat and leave the game during the course of the match.

    Regardless of this leader or that leader, the motivation should be from that of each individual fan to make a statement if they are dissatisfied. Get up and leave.

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  • nightfa11

    Jan 5, 2015 at 9:29 AM

    Comment #23

    Essex Geordie Bill

    “Tony Blair, great orator and personality” – i advise you to make a research about blair and his connection to freemasons..

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  • Ian Toon

    Jan 5, 2015 at 9:32 AM

    Comment #24

    Laurent – My point was that it was too fragmented. It needed to be a team effort with a high level of emotional intelligence.
    I have to go.

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  • beermonkey

    Jan 5, 2015 at 9:32 AM

    Comment #25

    Lilongwe

    I am sure if he wants to sell us he prob knows some1 or a group

    I do think he is going to have to move quick if he wants rangers there is another group buying up shares now and it will only get more expensive

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  • catchy in norway

    Jan 5, 2015 at 9:33 AM

    Comment #26

    just read the Chronicle about Ashley letting Lee and Alan chose the new coach,

    I know they will be some sort of parameters that he will have set up first, but I think its a great idea,

    this is Lee C’s big chance to put his stamp on the job, move the club forward, my worry is that he thought P45 was doing a good job 🙁 , so that’s the only thing I can judge the guy on, and if its true, then I don’t rate his judgment at all

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  • nufc 11

    Jan 5, 2015 at 10:41 AM

    Comment #27

    To be fair to MA he did spend a pile of cash on a new falt screen for sjp and then skimpped on the nuts and bolts to hold it up…..I hope you got a receipt mike bcoz alot of people are going to be asking where the fcuk has the money gone?

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  • Sav

    Jan 5, 2015 at 11:30 AM

    Comment #28

    If, as reported, Charmless and Carr are handed the job of appointing a manager/head coach (we’re presuming by now Mashley has run out of old pals to appoint) that it seems likely Carr will do the selecting and Charmless will assess the contract and attend to the financials. That appears to puts Hoddle another couple of rungs up the ladder but also increases the likelihood of a continental manager.

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  • BoyDoneGood

    Jan 5, 2015 at 11:45 AM

    Comment #29

    Not much point endlessly abusing the owner – of course he runs the club as a business. But he also watches the matches, enjoys the wins. For the business to be successful he needs firstly loyalty to the brand (fans on seats, sponsors on shirts, advertisers on hoardings), which depends secondly on premiership status (job done) and cup performance (whoops), and thirdly on premiership success leading to European football (problematic). You don’t think he’d really settle for a lousy manager to save a few quid? I think he’ll HOPE to do a good deal to bring in a manager who’ll raise the brand’s image. Maybe Tuchel is a risk given his unexplained sabbatical. Remi Garde is high profile, used to managing in a selling club, great stats, French connection, media charisma. Fingers crossed.
    BTW I loved the cockup in the post – “medicare” for “mediocre” – maybe computer spellcheckers know more than we think.

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