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.
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