Newcastle United will announce their financial results next week and the results will certainly be received with some astonishment.
Lee Charnley and Mike Ashley
We already know that the clubs revenues for the financial year ended last June 30th are about £129.5M from the Deloitte Money League that was issued earlier this month and had Newcastle the 19th richest football club in the world.
The revenue increase was about £33.6M from the previous year, and in that year we made a profit of £9.9M.
The increase was due almost entirely to the new Premier League TV deal that kicked in last season.
Assuming the costs have not gone up appreciably since that year then that revenue increase goes straight to the bottom line as profits – so we could be talking about £43.5M in profits.
In this graph we have put down £40M as the estimated profit for last year, to show what the profit picture looks like at Newcastle – the trend is very good indeed.
Whatever the profits turn out to be, they are likely to be huge, and maybe even the most profits of any Premier League club for some time.
You have to remember that top clubs like Manchester City lost £52M for their last financial year reported (2012-2013), and a loss of £98 for the previous year.
They spent a lot of money they didn’t even have on the playing staff – so you know what their priority is, even though it is reckless financially.
The question Newcastle will have to answer is how come we have spent no money in each of the last two January transfer windows to strengthen the squad, and we have limped through to the end of the season each time.
And in fact right now one of the problems that John Carver is struggling with is we have only five fit defenders.
We sold Yanga-Mbiwa to Roma, loaned out Davide Santon to Inter-Milan and let Alan Pardew go to Crystal Palace – all in January – and that gave Newcastle around £10M – but also helped decimate the squad.
Mike Ashley has done very well indeed with the financial side of Newcastle – let’s acknowledge that – it’s true.
But what’s the point if Mike will not spend the money now available on making Newcastle into a top team?
You can either have stellar financial results or a top side and in some rare cases both.
Newcastle fans would love to see the money spent to build another top side.
But the facts show that Mike Ashley’s goal seems to be to return stellar financial results,
Again – what good is that to a football club?
Note: Will Leversuch is a final year University of Greenwich student conducting some research into the marketing of Premier league Football Clubs. As part of that work Will needs lots of questionnaires filled in – see if you can help him by filling out this short questionnaire – thanks.
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