When Newcastle finally release their financial results for the year ended last June 30th, maybe they will come next week, they will show revenues of around £129.5M and profits anywhere from £30M to £50M.
Mike Ashley – he’s smiling at the profits – now how good our squad is
In order to cut down the profits figure so it doesn’t look too huge, there are a number of things Newcastle could do – such as pay off some of the £129M loan the club owes owner Mike Ashley, although the owner says he doesn’t particularly want paid back anytime soon on the interest free loan.
The huge profits will come because during that financial year we made no permanent signings and brought in only two players on loan – Luuk Remy and Luuk de Jong – so not much outgoing money on players.
It included the short eight months Joe Kinnear was the Director of Football.
And we sold Yohan Cabaye for about £20M to PSG fourteen months ago, and with the revenue we get from the Premier League TV deal having increased by around £35M from the previous year, most of that will go straight to the bottom line and the profits.
We had revenues of around £96M and profits of £9.9M in the previous financial year.
Just to show the potential profits picture at Newcastle the above graph assumes we will make £40M for the last financial year – it could be less or more than that.
Both revenue and profits will be new Newcastle records.
But the profits came at the expense of the playing squad, and again we are struggling to field a decent side in the second half of the season, because of some of the January transfer dealings we did – which were all outgoing players and nobody coming in.
It’s the wrong way round, and rather build up the profits at the expense of the playing squad, we should be building up the squad and be satisfied with smaller profits.
That’s what happens at the bigger and more successful clubs.
But there again being successful and having Mike Ashley as owner have never gone well together, and it’s now almost eight years since Ashley took over.
And in those eight years we have finished only twice in the top ten in the Premier League.
If Ashley wants Newcastle to be successful on the field, and that’s a big if, then he has to start spending the big bucks Newcastle will be making from now on.
That’s always assuming we can stay in the Premier League.
What do you think?
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