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