Newcastle United have returned to the top 20 of the Deloitte Money League which lists the top football clubs in the world in terms of revenue and we are in 19th position, and they are the best revenues Newcastle have ever had – £129.7M – which is a 35% increase on the previous financial year.
Mike Ashley – needs to lossen the purse strings
One weakness of Newcastle’s revenues in the previous several seasons has been our commercial revenues – which for instance at top club Real Madrid are £193.6M and at Manchester United, who are number two in the MOney League they are £189.3M.
At Newcastle last year our commercial revenue was up to £25.6M.
Here is the breakdown of the Newcastle revenues – taken directly from the Deloitte report – and commercial revenues are up 50% over the previous year and are now almost level with matchday revenues, which decreased last year, because we were not in European competition which we were the previous year.
The commercial revenue has been helped by the controversial Wonga shirt deal, and the long-term partnerships with both Puma and Thomas Cook, and the addition of online gaming brand 138.com.
There are long term deals in place with Wonga, Thomas Cook, and also recently with Puma – so the expectation is that the commercial revenue will keep increasing and will surpass that of matchday revenues – probably in the next financial year.
While a short few years ago matchday revenues were the biggest contributor to total revenues, they have decreased as a percentage over the last few years as the Premier League broadcast money has shot up – and now commercial revenue is finally on the rise.
And since we were down in the English second division from 2009-2010, our revenues in the last financial year over those of 2010 have gone up about two and a half times – and you can understand why Mike Ashley is keen to keep Newcastle in the Premier League.
For the money if not for any success in getting into the top six.
In the following diagram – which is taken directly from the Deloitte report – 2010 on the x-axis means the previous financial year – July 1st 2009 through June 30th, 2010.
But we now have to turn financial success into success on the pitch – and hopefully we can start to do that – with the appointment of a top coach in the summer.
But unless the owner loosens up the purse strings at Newcastle, it will remain very difficult to become a top six club again in England – which is what the fans want to see.
That’s where we belong.
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