We still haven’t seen the Newcastle business results from the club for the last financial year through June 30th last year, and while we estimated the revenues would come in at £135M – they are £129.7M – so that’s close – and that puts Newcastle as the 19th richest club in the world, based on revenue, in Deloitte’s latest list of the top clubs in the world based on revenue – called the Money League.
Mike Ashley – Newcastle owner
The highest we have ever been is in 13th position when Freddy Shepherd was Chairman of Newcastle.
And Newcastle are one of three clubs who have entered the top 20 this time – the other two being Everton and Napoli.
We expect the revenues and the profits to be the biggest ever for Newcastle for the last financial year (2013-2014), and it’s based on the first year of the new three year TV deal from the Premier League, when Newcastle received something like £35M extra from the Premier League for last season compared to the season before.
Newcastle are one of eight Premier League clubs to make the top 20 and one of 14 PL clubs in the top 30.
Deloitte now believes Newcastle can remain in the top 20 of the Money League in the future, based on the Premier League income, which basically means each club gets around £2M for each place in the Premier League, and it’s anywhere from £60M to £100 for the next two years, and could be even more in the future. 🙁
This 18th edition of the report has just been released by Deloitte’s Sports Business Group in Manchester, and our revenue increased by a massive 35%.
And that revenue is without Newcastle being in Europe or having long runs in the League or FA Cups (they are nearly always short runs – like we are eliminated in the first round we compete in.
It’s based on Newcastle finishing 10th last season in the Premier League, when we got around £79.5M from the Premier League last May.
Match day revenues are not what they used to be in terms of the percentage of overall revenue, and it even decreased by 7% last year to £25.9M – so those saying stay away from the games in protest – it will not hot the Newcatsel financial results much – we get over three times the revenue from the PL, than we get from gate receipts.
The decreases in gate receipts was because of fewer home matches since the season before we had been in the Europa League – but we had also finished in 16th place in the Premier League on the old TV deal and received around £45M in PL revenues.
The Wonga deal is not popular with Newcastle fans, but it did help us to increase our commercial revenue by 50% to £25.6M during the first year of our shirt sponsorship agreement with Wonga.
Commercial revenue has been a weakness of Newcastle’s in the last few years in their financial numbers, and is nowhere near that of the top clubs in England.
Derek LLambias had said before he left Newcastle that the Wonga deal was the best one ever in terms of revenue for Newcastle, and Deloitte feels that Newcastle are commercially in the strongest position in their history.
That should also be true of both revenue and profits.
The full top 20 is as follows and the numbers are in £ sterling – the number in brackets are the previous year’s revenues.
1 Real Madrid 459.5 (444.7) 2 Man United 433.2 (363.2) 3 Bayern Munich 407.7 (369.6) 4 Barcelona 405.2 (413.6) 5 PSG 396.5 (341.8) 6 Man City 346.5 (271.0) 7 Chelsea 324.4 (260.0) 8 Arsenal 300.5 (243.6) 9 Liverpool 255.8 (206.2) 10 Juventus 233.6 (233.5) 11 Borussia Dortmund 218.7 (219.6) 12 Milan 208.8 (225.8) 13 Tottenham 180.5 (147.4) 14 Schalke 04 178.9 (169.9) 15 Atletico Madrid 142.1 (102.8) 16 Napoli 137.8 (99.8) - new 17 Inter-Milan 137.1 (141.0) 18 Galatasaray 135.4 (134.6) 19 Newcastle 129.7 (95.9) - new 20 Everton 120.5 (86.4) - new
Sunderland are 27th in the Deloitte list with a revenue of £95.7M.
And because we don’t see any increased costs in the last financial year over the previous one, and Newcastle made £9.9M profits in 2012-2013 – we think the increased revenue will flow to the bottom line.
That means we could see profits being around £40M for the last financial year.
As we’ve been saying it will be the best revenue and profits ever for Newcastle United, and will continue, so talk about there being no money available for transfers is not accurate.
It’s because we don’t want to spend the money – or some other reason.
If Mike Ashley would only agree to pour the profits back into the club, we could again become a top team in the Premier League.
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