Newcastle United had £34M available at the end of the last financial year, which was at the end of June of last year, and that has been revealed in the more detailed club’s financial figures, which have been available since Monday.
Mike Ashley and Lee Charnley
The full accounts have now been registered with Companies House last Monday, and an amount of £38.6M was paid in and that helped pay off an existing £4.5M overdraft, and left £34.1M available in cool cash.
Mike Ashley still has a £129M interest-free loan outstanding, but with the money available in the bank (to spend on players hopefully) it means Newcastle’s overall debts by last June 30th had come down by that amount (around £34M) so we have around £94.8M outstanding.
After June 30th last year it appears that we spent £29.8M on new signings (that will part of this financial year’s accounts) and received £12.6M from player sales, and that would be mainly from the sale of Mathieu Debuchy to Arsenal.
Newcastle wages bill rose to £78.3M from £61.7M – so that’s a rise of 26.9% which is quite sizable.
But because of the huge increase in revenue from the Premier League TV deal – about £35M more (or around 78% more) than in the previous financial year – the wages to revenue ratio actually dropped from 64% to 60% – and that’s quite low compared to other clubs.
What these figures really show quite clearly is that Newcastle United FC are in rude health financially – but we already knew that from the figures announced a few weeks ago, when the club announced £129.5M in revenue and £18.7M in profits – both club records.
If Mike Ashley is to remain as the owner at Newcastle, he clearly has the money to spend on new players in the summer, but there are doubts as to whether the Londoner wants to build a top side at Newcastle.
And remember that we will get big money from the Premier League next month – last year it was £79.5M but this year it will be lower because of our lower position in the Premier League, but probably at least £70M.
Premier League clubs get anywhere from £60M to £100M – depending on various factors, but mainly where we finish in the league table.
So if we needed more money in January we knew that money was coming in at the end of May, so we had plenty to spend if we really wanted to strengthen the squad – but it appears that we didn’t.
And because of that we are struggling in the league table and have lost our last five games with a threadbare squad.
It’s all really a damning indictment on the way the club had been run this year – let’s be honest about that.
The embarrassment for Mike Ashley and Lee Charnley is that there was money to spend in January to fortify the squad, and that tells us that Ashley is still prioritizing the financials at Newcastle over the strength of the squad.
And that doesn’t work for a football club.
Comments welcome.
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11 comments so far
optimistic prime
Apr 15, 2015 at 3:27 PM
Comment #1Oh no there isn’t.
It’s behind you
No it isn’t
Quick the crocodile is stealing sausages.
barkel
Apr 15, 2015 at 3:29 PM
Comment #2repost:-
OP @130
On the Shearer transfers it says:
“(NB: * these departures took place when the club was managerless – with Alan Shearer’s position as manager expiring at the end of the season. Players then ceased to be Newcastle players after that date when their contracts expired).”
But regardless it is mostly reserve team players in that list.
@131
The club have/had an agreed £39million over draft facility, that was mentioned a few years back when the club was “up for sale”
optimistic prime
Apr 15, 2015 at 3:35 PM
Comment #3Barkel
It still makes no sense to put his name to them.
Ibizatoon
Apr 15, 2015 at 3:35 PM
Comment #4Barkel…Just having a read up on that. Seems it was re-negotiated with Barclays at that time for £39m to £25m.
Something I noted in the article was that the club hoped given how well they were doing, that they’d be able to fetch more interest in a sale over “the coming months”.
Haven’t seen your name on here for a while, have you been in hiding?
Ibizatoon
Apr 15, 2015 at 3:38 PM
Comment #5New thread and all that…
Don’t want this to be missed, as it would appear some believe it to have been a setup against the club…clearly it is not.
http://www.mirror.co.uk/sport/football/news/newcastle-united-dump-pictures-bobby-5519204
Surely we don’t still think this is someones photoshop handywork?
I admire those who are able to still give the club the benefit of doubt. Not sure where it comes from mind 🙂
HWTF!
optimistic prime
Apr 15, 2015 at 3:41 PM
Comment #6Ibiza
It was you!
You dumped those photos, and judging by your links you have the image rights?
barkel
Apr 15, 2015 at 3:52 PM
Comment #7OP – I would imagine the logic behind linking it to Shearer was that he was the last manager at the club when those players left. I would think it makes for easier record keeping.
Ibiza – Forgot that the reduced it, must have confused it with all the other info that the club put out. Haven’t been hiding, I usually just read the articles & comments. Although recently I haven’t paid too much attention to the comments .. it’s depressing enough watching the team to read through all the fans arguments with each other!
toon kk
Apr 15, 2015 at 4:02 PM
Comment #8One of the big concerns is if and when Mash does decide to spend, the players he buys don’t really push the club forward as a team. There usually kids with resale in mind, quantity rather than quality is Mashleys business plan but with our poor coaching record most turn into flops.
We Need pacey proven quality or we’ll go down come the end of next season.
Tbo our squad doesn’t belong in the premier league.
ilovetoon8788
Apr 15, 2015 at 4:02 PM
Comment #9The only money we will spend in summer is based on the money we get from selling players. So just hope that we get good money from sissoko, krul and tiote sales.
optimistic prime
Apr 15, 2015 at 4:17 PM
Comment #10http://www.themag.co.uk/2015/04/lunacy-or-stockholm-syndrome-for-some-newcastle-fans/
This is spot on IMO, I’ve a feeling he read the scab comment here.
sickandtired
Apr 15, 2015 at 5:07 PM
Comment #11Actually, Ashley has 111 million as interest free loans.
An additional 18 Million (from his relegation) is still secured on broadcasting income and repayable on demand.
129 million still owed.