Newcastle Have Doubled Their Profits To A Record £18.7M


Newcastle United Have Announced their results for the financial year 2013-20914 and they have recorded record profits of £18.7M, although that is a lot less than predicted.

lee charnley close-up

Lee Charnley – Newcastle Managing Director

This is what Newcastle have just announced:

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Newcastle United Football Company Limited has today (Monday, 30th March) confirmed continued financial progress as it filed its annual accounts for the year ending June 2014.

The Club has recorded strong results, with the growth in commercial revenue playing a greater role in delivering a record £18.7M profit after tax, up from £9.9M in 2013.

The results signal the fourth consecutive year of recorded profit for the football club. Operational losses of £0.6M in 2013 have been turned into an operating profit of £4.7M as the Club continues to outperform UEFA Financial Fair Play regulations.

The Club’s turnover rose to £129.7M, up from £95.9M the previous year. Matchday revenue, which includes ticket sales and hospitality, dropped slightly to £25.9M, down from £27.8M in 2013, when the Club hosted seven additional home games as a result of its participation in the UEFA Europa League.

Season ticket renewal figures held steady, as did average Premier League attendances, which were 50,395 compared to 50,517 the previous season. Media rights revenues accounted for £78.3M of turnover, a 53.3% increase on the previous year.

This reflected the new Barclays Premier League broadcasting rights deal as well as the Club’s improved league position of tenth in 2013/14, compared to 16th the season before.

Most significantly, the Club reported strong commercial revenue growth delivering £25.6M in 2014, up from £17.1M in 2013. This 49.7% increase was largely the result of two lucrative new deals with the Club’s principal sponsors, Wonga and Puma.

The Club’s debt continues to remain static at £129M in the form of an interest-free loan from owner Mike Ashley. None of the debt has been repaid to Mr Ashley nor has the owner taken any other monies from the Club.

Newcastle United managing director Lee Charnley said:

“I am pleased to report a positive set of results which confirms the healthy financial position the Club now finds itself in and is a reflection of the prudent and measured manner in which we operate.”

“The Club benefits from a supportive owner and is financially stable. This gives us a strong platform from which to grow, both on and off the pitch, a result of which means, as we move forward, we are able to net spend on the playing squad and invest in other areas of the business.”

“The most pleasing aspect in this set of accounts has been the growth in our commercial revenue and it has been our strongest year yet in that respect.”

“With our commitment to keeping ticket prices affordable for our supporters growing our commercial income has been crucial. The deals we struck with our two main sponsors, Wonga and Puma, together with a stronger focus on our commercial operations, have helped us achieve this growth.”

“We believe financial stability will deliver positive on-field results for the Club.”

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Notice the profits  are after tax has been paid.

Without seeing all the details, it’s hard to say what Newcastle’s extra costs were in the financial year – because they must have gone up from the previous year when we made £9.9M profit.

The revenue went up by £33.8M from the previous year, which is why even higher profits were expected – always assuming the costs were about the same as in the previous year.

The only way to find out is to delve more deeply into the books, but we don’t have that level of information.

However, they are still excellent results and the best ever for Newcastle United.

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25 comments so far

  • cyprus

    Mar 30, 2015 at 10:13 AM

    Comment #1

    So now we’ll be playing accountants for the next week?

    FA, give us some PL football, NOW!

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  • Average_Contents

    Mar 30, 2015 at 10:16 AM

    Comment #2

    How is that lowly profit even possible? Like LG mentions – have costs risen THAT much that it’s only £9m up from last year. Sorry but those accounts are a load of guff.

    £33.8m more turnover than the previous set of accounts and that doesn’t include the money from selling Cabaye -it’s just pure revenue as player sales haven’t been included in what they’ve just released. They’ve got the squad on the bones of it’s arse yet the only explanation for that paltry profit can only be that business costs have risen. How have they? Every single little thing is stripped to the bone.

    I’m pretty sure they’d of mentioned £25m for training facilities in these accounts if it’d happened.

    Don’t care what anyone says, money has magically disappeared and no you don’t have to be an accountant to work THAT out. No doubt some on here will herald the slug. The saviour. The thief more like.

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  • WWSBRD

    Mar 30, 2015 at 10:18 AM

    Comment #3

    Handshakes and pats on the back all round ladies and gentlemen, I shall be hosting the ‘Most Profitable Awards’ at the City Hall later tonight and your all invited…its mainly a love in for accountants BUT their will be a player auction everything must go, highest bidder takes all even the tea lady is for sale

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  • nut meg

    Mar 30, 2015 at 10:18 AM

    Comment #4

    He will pay big bucks for the best creative accountants he can find but NOT for top footballers.

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  • Average_Contents

    Mar 30, 2015 at 10:19 AM

    Comment #5

    “Nor has he taken any other monies from the club”.

    Why the need to state that? Nobody asked did they? Oh just incase us thickos thought he had. Thanks penfold you brown nosed runt.

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  • optimistic prime

    Mar 30, 2015 at 10:23 AM

    Comment #6

    A supportive owner…

    I nearly shat myself laughing.

    What happens to the money from a players contract when we sell them?
    We’re always told they need to be taken into account when we buy but we never hear about wages we save when selling, so where is the cash kitty???

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  • Sav

    Mar 30, 2015 at 10:23 AM

    Comment #7

    Results are barely half what was predicted here recently. Clearly the accountants on this site would be relegated.

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  • Lindisfarne

    Mar 30, 2015 at 10:24 AM

    Comment #8

    Cancel the open top bus

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  • jayphoto

    Mar 30, 2015 at 10:25 AM

    Comment #9

    25m for the training centre would make complete sense. No point really speculating though, theres a million ways MAsh could divert money out of the club without fans being able to see it. Could even be using the company that owns the club (st james’ park holdings?) to invest in other companies in the MASH empire and simply then taking money out of those…. the guy owns 100’s of companies..

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  • Jeff from Benwell

    Mar 30, 2015 at 10:25 AM

    Comment #10

    “We believe financial stability will deliver positive on-field results for the Club.”

    So do I.

    This Summer is time to deliver. (shit or bust time for many who up to now have shown unbelievable patience)

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  • Average_Contents

    Mar 30, 2015 at 10:26 AM

    Comment #11

    It’s bad enough that we receive absolutely zero from his companies for their mass advertising which doesn’t allow us to maximise income yet we have to “wipe our own nose”

    Now he’s fiddling the accounts to cream even more off us. Disgusting but what do you expect from a bully boy who lacks any governance whatsoever and who’s sole intention is to maximise his “baby”

    NOT A PENNY MORE.

    Surely the apologetics can’t back him now and fans who go to games can see what he’s upto. Thief.

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  • WWSBRD

    Mar 30, 2015 at 10:28 AM

    Comment #13

    In all honesty fair play to them for making money from the club and being average in the league, not many can do that

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  • optimistic prime

    Mar 30, 2015 at 10:29 AM

    Comment #14

    Jeff

    I wish you’d stop talking SHIT
    Or BUST your PC.

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  • Jeff from Benwell

    Mar 30, 2015 at 10:30 AM

    Comment #15

    I’m not going to name names
    But for those who have immediately gone off on one
    THIS STATEMENT REFERS TO THE PROFIT AND LOSS ACCOUNT
    Items such as transfer fees go in the balance sheet under assets or liabilties

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  • Lindisfarne

    Mar 30, 2015 at 10:36 AM

    Comment #16

    Where is the other £15.2M?

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  • beermonkey

    Mar 30, 2015 at 10:42 AM

    Comment #17

    profits will be less than that I read that headline and spat my coffee all over my laptop in laughter

    so they owe me for that

    if they had paid for the training upgrades they would have said

    Ashley has taken his 18mill loan back the one they said at the accounts based fans forum last year he had no plans to do in the near future

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  • optimistic prime

    Mar 30, 2015 at 10:44 AM

    Comment #18

    In last two years we have total profits of £27.7m, so why do we have a severe lack of players in the squad?

    Why are we going into every season short on players for certain positions yet post these profits after saying we couldn’t afford it?

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  • optimistic prime

    Mar 30, 2015 at 10:46 AM

    Comment #19

    Not one person can explain the accounts, but it says a lot about the one that tries.

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  • BoyDoneGood

    Mar 30, 2015 at 10:46 AM

    Comment #20

    LC quote:

    “The club benefits from a supportive owner and is financially stable. This gives us a strong platform from which to grow, both on and off the pitch, a result of which means, as we move forward, we are able to net spend on the playing squad and invest in other areas of the business.”

    “Net spend” is a very luke warm commitment. I think the £60M story is fading away. Let’s keep our fingers crossed for an enterprising coach and a few key players.

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  • Jeff from Benwell

    Mar 30, 2015 at 10:46 AM

    Comment #21

    I love this time of year when the accounts come out and you can get a good idea of how thick some posters really are !!!
    The Mag is screaming about missing millions and the berks don’t even know how much tax was paid , precious .

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  • Average_Contents

    Mar 30, 2015 at 10:47 AM

    Comment #22

    Oh yes that other statement for player trading they release every year after releasing the accounts – I must of missed those the past 7-8 years. Not. Talking guff again.

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  • BoyDoneGood

    Mar 30, 2015 at 10:48 AM

    Comment #23

    AvC

    I think you talk accountancy like Iantoon talks Danish.

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  • croftus5678

    Mar 30, 2015 at 11:13 AM

    Comment #24

    bloody big con !

    i knew fatman would pull something like this lol.
    we all know he will only spend what we have so “if” we spend anything on players its going to be around 15mil max now ! and if players leave we know he wont spend the money that comes in for them untill its registered for the next seasons accounts >.<

    and saying kemen/luuk + remy loan deals was 9mil in total is completely obsurd your talking 3-4mil max so there should be atleast 5 mil from that left with taking their words that the accounts are what they say they are !

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  • Moonraker15

    Mar 30, 2015 at 5:45 PM

    Comment #25

    Jeff
    Don’t talk like a dick; profits from transfers do not show in the balance sheet under assets as they are part of the profit and loss account (or should be).
    Therefore the club is probably hiding profits, which doesn’t surprise me; but why would fatso not pay himself back some of the loan?

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