Deloitte reported yesterday that the 20 Premier League clubs made a combined pre-tax profit of £190M in the last financial year, which was from July 1st, 2013 through June 30th, 2014.
Mike Ashley – Newcastle owner
And it could well be that Newcastle are top of the league in terms of profitability with profits that could even be close to £50M and should be at least over £35M.
It’s easy to get to those figures because we made £9.9M in the previous year, and we made around £35M more form the Premier League last year, because of the first year of the new TV deal the Premier League has negotiated.
It’s also the first time we have had the money coming in from the Wonga deal, and it seems the commercial revenues went up from around £17M to £25M last year – an increase of around 50%.
£190M means the average per PL club is around £9.5M but remember some clubs made a loss – and that includes Sunderland – who have already announced they lost £17.5M last year.
Dan Jones is a Partner in the Sports Business Group at Deloitte and he has been widely quoted – this is some of what he has said about the numbers:
“In the first year of the preceding two broadcast deals, 56% and 81% of respective revenue growth was absorbed by wage costs. This time it is less than 20%,”
“Over the previous 10 seasons wages grew by around 9% per year, which is higher than the average annual revenue growth of 7% over that period, demonstrating further what a remarkable turnaround the 2013-14 figures represent.”
“The primary aim of a football club is, and always should be, on-pitch success for the fans. However, we do welcome these results, which show that the Premier League clubs are starting to convert their impressive revenue growth into a more sustainable net result.”
“With the recent announcement of another record Premier League broadcast deal, the revenue increases show no sign of ending and should make this season’s profit a regular outcome.”
“Such profits provide the clubs with a great opportunity to invest further in their facilities and youth development activities, but will also no doubt make Premier League clubs even more attractive to potential investors than they already were. They can now be reasonably profitable businesses as well as trophy assets.”
Jones is 100% right to say – “The primary aim of a football club is, and always should be, on-pitch success for the fans.”
Newcastle fans will agree completely with that, and what’s the point of having huge profits if we have only a mediocre side?
If Newcastle do come top of the Premier Money League there will be many questions asked by fans as to how come we didn’t spend some of that money last January to build up the squad.
The fans are already asking that before the financial figures are known.
It’s actually good news for Newcastle that we have our costs under control and are making some big money now, but it’s bad news when you are going to finish in 14th place or thereabout this season.
The financial results will show we have plenty of money to spend – and at least up till now we haven’t spent that money on the squad.
We are hoping there will be a change of direction by Mike Ashley and that he will spend more money to build up the squad, and give us a top team to support again.
That’s the hope.
There is a chance Mike could change his ways – that could even become the good news this summer.
Wouldn’t that be something.
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