We’ve been asked by a number of our readers to comment on Derek Llambias’ bio on the Rangers FC web-site, as it seems to contain some inaccuracies about what he did at Newcastle United.
Derek LLambias when he joined Newcastle United
Here’s the short bio on the Rangers FC web site:
“Derek joined Newcastle Football Club in 2007 as Vice Chairman and Managing Director and in his 5 years stewardship he reformed and improved stadium facilities, expanded commercial activities giving N.U.F.C. an increase in turnover from £85M to £123M.”
“He took the club which was making significant losses to one of the top 20 most profitable clubs in Europe.”
The first inaccuracy is that he joined Newcastle as Vice Chairman in May 2008, and then became Managing Director after the departure of Chris Mort in June of that year.
He didn’t join the club in 2007 but he did stay five years until he resigned in June, 2013 after Joe Kinnear had been hired as the Director of Football.
Here’s Newcastle’s revenues since Mike Ashley bought the club in the summer of 2007.
Note that in 2009-2010 we were in the Championship when our revenues were cut almost in half.
So when Derek joined the club in 2008 our revenues for the financial year 2007-2008 were £99.4M, and when he left in 2013 they were £95.9M – which is a decrease.
So Derek can hardly say he increased the revenues when he was at Newcastle.
Here is where Newcastle were placed by Deloitte in their annual Money League, which reports the revenues of the richest football clubs in the world.
Financial Year Deloitte ML
2007-2008 17 125.6 2008-2009 20 101 2009-2010 nowhere near 2010-2011 25 98 2011-2012 22 115.3 2012-2013 25 111.9 2013-2014 19 155.1
So when Derek joined the club in 2008 we were already 17th in the Money League, and when he left in 2013 we were 25th in the Money League – a decrease of 8 places.
So there are some inaccuracies in the bio when you look at the facts of Newcastle’s revenues, and where we were positioned in the Money League over the five years Derek LLambias was Managing Director at Newcastle United.
However, what is very true in his bio is that Derek reduced Newcastle costs significantly during his time at the club, and we went from losing over £30M three years running, to actually making a profit.
And you can see the dramatic drop in losses in 2010-2011 as an example of how Derek got Newcastle onto some profitability.
That probably was helped by Newcastle dropping down into the Championship and being forced quickly to cut our costs, because of the significantly reduced revenues.
In Derek’s last year at the club Newcastle’s profits were up to £9.9M and we expect them to be four times that for the financial year ending 2014.
If the profits for the last financial year were indeed around £40M that graph above is going to look very good.
Now all we need to do is to get Mike Ashley to spend some of that money on the squad.
In conclusion, Derek LLambias was the prime mover in getting Newcastle’s significant costs under control and to be fair, he did a very good job in getting Newcastle into some profitability.
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