Some Mysteries Cleared Up In Newcastle’s Financial Figures


The Swiss Rambler has studied the Newcastle Financial results for the last financial year of July 1, 2013 though June 20, 2014 and with the figures also being available at Company House – it’s now possible to look a little more closely at Newcastle’s financial figures for last year, and we have taken some of the charts from the Swiss Rambler site – which has been an excellent financial site for football for quite a few years now.

The site doesn’t produce too many reports, and the person running it is an Englishman married to a Swiss girl and he’s in the business of finance,  and his reports are of the highest quality – so  compliments again to the Swiss Rambler.

lee charnley close-up

Lee Charnley – Newcastle Managing Director

Here are Newcastle’s full profit and loss figures for the last financial year.

1 Newcastle P&L 2014

We had assumed that Newcastle’s costs would have remained constant from the previous financial  year but that wasn’t the case,  and the wage bill went up from £61.7M to £78.3M – an increase of £16.6M, which is one reason the profits were not as big as we had expected them to be.

The player amortization – where players are paid for over a number of years in the accounts – also went up from £12.8M to £19.6M – another increase in costs.

The other expenses line also increased from the previous year by £4.7M so the overall expenses last year actually increased by £28.1M from the previous financial year, and helps to explain why the profits of £18.7M were not even higher.

The commercial revenue has been a weakness in Newcastle’s finances for some time, but last year with the new Wonga deal the commercial revenue increased from 18% of total revenues to 20%, and in real terms increased from £17.1M to £25.6M –  an increase of almost 50%

NUFCF - Newcastle Revenue Mix 2014

Broadcasting revenue is now a massive 60% of total revenues and match day revenues and commercial are 20% each of total revenue.

The broadcast revenue from the Premier League is due to go up by 70% in a massive £5.1B deal, and it starts in the financial year – July 1st, 2016 through June 30th, 2017 – so broadcast revenues will be even a higher percentage in years to come.

NUFCF - Newcastle Revenue Growth 2007 - 2014

The above graph shows a number of interesting points and one of them is our commercial revenue has actually decreased by about £2M since Mike Ashley took the club over in 2007, and the yellow in the chart is broadcast revenue which will be massive in future years, and this year is the first year of the new £3B Premier League TV deal which runs for three years.

And notice that actual revenues from match day are less than they were back in 2007 – they were £25.9M last year compared to £33.6M back in 2007, and that’s because Ashley has given out some good deals to get the fans to the matches.

Back in 2007 match day revenues were 38.6% of total revenues, and they have decreased in real terms to only 20% of revenues, and will decrease even further when the new £5.1B broadcast deal starts next year.

The new TV deal should allow Premier League club to financially compete competitively with other European clubs – so there’s no reason why English clubs cannot start competing more effectively in European competition  once again, after a falling away over the last few seasons.

Of course to build a top team you have to be willing to spend the money on the playing squad, which Mike Ashley hasn’t done (yet?) at Newcastle.

The owner seems to pride himself on having good financial figures every year – but that does nothing for the team on the field – as Newcastle fans have witnessed all too clearly.

Both the revenues and profits for Newcastle are the best ever, but we will probably see a decline in the revenues for the financial year ending this June 30th, due to Newcastle being lower in the league than we were last year, when we finished in 10th place.

Newcastle are currently in 14th place and as a very rough guide each place is probably worth around £2M in revenue.

Given where we are at the moment, we probably will finish in 15th place, because we expect Aston Villa to overtake us before the end of the season – so that would be around £10M less in broadcast revenue compared to last year.

We are the 7th richest club in England and the 19th richest in the world – so at least financially we are just behind the top six in the Premier League – but nowhere near on the playing field.

NUFCF Newcastle Revenue League 2014

The bottom line is nothing new – we are in great shape financially and in terrible shape on the pitch.

Comments welcome.



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117 comments so far

  • tequilamag

    Apr 23, 2015 at 4:07 PM

    Comment #1

    So we are pretty cheap to watch live compared to 7 years ago but then again you get what you pay for.

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  • Our Toon

    Apr 23, 2015 at 4:07 PM

    Comment #2

    He needs attendances for next season, UK broadcasters will not pay to show half empty stadiums. Sky and BT are on board with this!!

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  • N1CK06

    Apr 23, 2015 at 4:20 PM

    Comment #3

    Other than being owned by Mike Ashley, what do Sports Direct’s clothing and NUFC have in common?

    They are both made as cheaply as possible and are hanging on by a thread.

    Ha. Ha.

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  • Slank

    Apr 23, 2015 at 4:24 PM

    Comment #4

    Our Toon

    ‘UK broadcasters will not pay to show half empty stadiums. ‘

    That’s tough on Middlesbrough fans

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  • Grafton83

    Apr 23, 2015 at 4:25 PM

    Comment #5

    Yesssss 7th, that’s awesome. I love it when we experience success like this. I am going to be helicoptering around my living room for the next couple of hours now. Common newcastle, wohooooo!!!

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  • Pokat

    Apr 23, 2015 at 4:35 PM

    Comment #6

    Yeah cheap deals but the goods are getting cheaper step forward Mr mike ashley. Its different in the entertainment business though mike because at some point your going to have to give the tickets away to fill the ground.

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  • Pokat

    Apr 23, 2015 at 4:36 PM

    Comment #7

    Yeah haha boro will show the way forward on giveaway tickets it’s like a dentists waiting room on the riverside they only get big crowds for car boot events I heard lol

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  • BandB

    Apr 23, 2015 at 4:43 PM

    Comment #8

    Why can’t Mike Ashley just charge a fair price for a fair product, instead of his seemingly pathological need for everyone he deals with to know that clever him has screwed them over?

    Talk about bullied at school.

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  • Our Toon

    Apr 23, 2015 at 4:44 PM

    Comment #9

    Slank

    I don’t know much about boro but Scudamore came out and said that half empty stadia etc will affect broadcast able games. That’s between 2m / 2.5m per game shown, now that will hurt MA.

    This is why he’s happy to give away tickets to ensure all is rose come the new season

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  • Magpie Season

    Apr 23, 2015 at 4:46 PM

    Comment #10

    The matches will still be shown live regardless of attendance if any of the ‘big clubs are at St.James.

    The people who subscribe to matches, & Sky Sports who resell these rights to broadcasters over the world, are only interested in watching 90mins of football. Their ticket is not a match ticket to be surrounded in the atmosphere, matchday experience, etc. But to watch the football match only.

    E.g. The Champions League CSKA v Man City, I’ll have a look into the ratings a bit later but was still shown live.

    Heard there’s boycott for Swansea again. Baby steps, eh? Even if 1 less person shows up than last week that is still progress.

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  • Grafton83

    Apr 23, 2015 at 4:47 PM

    Comment #11

    helicopterrrrr wohooooooooo………….

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  • Blackley and Brownlie

    Apr 23, 2015 at 4:48 PM

    Comment #12

    Will any boycotters be using their mate’s ticket to go in the ground this week? That’s all I want to know.

    You couldn’t make it up.

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  • TacoFlavoredKisses ForMyBen-arfa

    Apr 23, 2015 at 4:49 PM

    Comment #13

    HOw the F has our wage bill increased? who actually makes decent money on our squad aside from colo?

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  • Our Toon

    Apr 23, 2015 at 4:51 PM

    Comment #14

    Blackley

    Still discussing that so called irrelevant topic of boycotting…you couldn’t make it up, it seems like it’s had its affect on you, it’s all you write about.

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  • Blackley and Brownlie

    Apr 23, 2015 at 4:51 PM

    Comment #15

    OP

    You might want to take MagpieSeasons advice.

    “Heard there’s boycott for Swansea again. Baby steps, eh? Even if 1 less person shows up than last week that is still progress.”

    Comedy Heaven.

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  • Blackley and Brownlie

    Apr 23, 2015 at 4:53 PM

    Comment #16

    High fives for OurToon, gang.

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  • Our Toon

    Apr 23, 2015 at 4:53 PM

    Comment #17

    Magpie season

    Virtually all premier league games are shown in other countries, they have separate deals signed with the FA. UK broadcasters have a different deal to these hence why 3pm kick offs can’t be broadcast.

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  • mecannylad

    Apr 23, 2015 at 4:53 PM

    Comment #18

    Want to bet the the stadium pitch-side clocks will be mysteriously out of action this Saturday in a desperate attempt to thwart the 34th minute standing protest /

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  • Our Toon

    Apr 23, 2015 at 4:56 PM

    Comment #19

    High fives?

    Wow a bloke who said he’s attended SJP as a ticket holder of over 40 years is behaving like my 5 year old nephew on a blog. You couldn’t make it up….I’m actually in shock.

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  • Lilongwe Geordie

    Apr 23, 2015 at 4:56 PM

    Comment #20

    Magpie Season,
    Yeah, plus we received just £11.6 million for being shown on TV according to last seasons figure. Then there is the league position placement which was £13.6million. The other £50.2 million was paid to every club regardless of appearances of performance.

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  • Blackley and Brownlie

    Apr 23, 2015 at 4:56 PM

    Comment #21

    Blackleg. Criticised now for turning this blog into a boycott blog. You couldn’t make it up. OurToon just did.

    Group hug for OurToon. That’ll show Blackleg. Smashed it son. Smashed it.

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  • BoyDoneGood

    Apr 23, 2015 at 4:57 PM

    Comment #22

    Where are the guys who claimed Ashley was a ****ing thief who had nicked the club’s 25 mill?

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  • BandB

    Apr 23, 2015 at 4:57 PM

    Comment #23

    Our Toon,

    The club hasn’t issued a single statement denying that the boycott was sizeable and had an impact.
    John Carver has said to that it did have an impact.
    Meanwhile, ticket prices have been cut for the Swansea game.
    So you aren’t really arguing with the club. Just a handful of people who vociferously predicted it would flop and are now trying to save face.

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  • Lilongwe Geordie

    Apr 23, 2015 at 4:57 PM

    Comment #24

    We made more from the even split foreign TV deal last season than being shown on UK TV.

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  • Pokat

    Apr 23, 2015 at 4:57 PM

    Comment #25

    OK so boycotts a bust Blackley, what’s your alternative mate?

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  • Blackley and Brownlie

    Apr 23, 2015 at 4:58 PM

    Comment #26

    Someone explain irony to OurToon. It’s not in his accountancy manual.

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  • Lilongwe Geordie

    Apr 23, 2015 at 4:59 PM

    Comment #27

    BandB,
    For the sake of balance, Carver has also come out and said that it had no effect. Think everything is just getting a bit too much for him!

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  • Pokat

    Apr 23, 2015 at 5:00 PM

    Comment #28

    Someone explain to Blackley what dodging the issue means while they’re on

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  • Wayayman

    Apr 23, 2015 at 5:01 PM

    Comment #29

    You couldn’t make it up. Well, you could and you do, but carry on with your ‘catchphrase’ mate.

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  • Pokat

    Apr 23, 2015 at 5:01 PM

    Comment #30

    It couldn’t be simpler Blackley just about everyone on this blog bar three or four can explain what they think should be done to address the current problems. Why are you shirking this one?

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  • BandB

    Apr 23, 2015 at 5:02 PM

    Comment #31

    Lil,

    True. A person arguing with himself is likely to produce a balanced argument.

    0
  • Pokat

    Apr 23, 2015 at 5:03 PM

    Comment #32

    it’s the way he tells em wayayman haha or doesn’t more to the point

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  • Our Toon

    Apr 23, 2015 at 5:04 PM

    Comment #33

    Blackley

    The irony is that you claim to be against the boycott and claim it didn’t have an affect yet you struggle to hold any meaningful conversation….its all about the boycott with you. It’s Thursday, almost a week since the boycott and instead of discussing the game or the upcoming game you’ve got swept up by the boycott movement….the most amusing aspect is that you don’t even realise it yourself, says alot about your intelligence levels.

    Btw….do you ask for the kiddie prices when you buy your ticket and then ask go for high fives?

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  • BandB

    Apr 23, 2015 at 5:06 PM

    Comment #34

    Blackley,

    You are having a good go at casting yourself as the blog bogeyman.
    You wish 🙂

    You are a harmless crackpot. A Mr Toad, dressed in yellow, whizzing round your country manor on your lawn mower.

    Poop Poop!

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  • John Tudor

    Apr 23, 2015 at 5:09 PM

    Comment #35

    whoop de doo go choke on your thermidor
    cockheed

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  • Magpie Season

    Apr 23, 2015 at 5:11 PM

    Comment #36

    OurToon, not sure what that means. I just know that when it comes to live sports, the biggest networks usually buy the licenses but the matches in the EPL are shown live in hundreds of tv stations across the world, especially Asia where ‘smaller’ tv networks pay the license holder, Sky, to also broadcast live. Like a tv station in Japan, or Korea would show the match live but via Sky’s Live network signal. The tv station in Japan showing the live fixture would pay Sky to broadcast it.
    I may be wrong but I know this is how it works in Cricket, especially in Asia.

    Now, with Player Amortisation Expense,

    I thought one of our strengths when it came to negotioting player transfers was that we always offfered full upfront payment. I remember Ed mentioning this few seasons ago that was one of Ashleys bargaining chips to reduce player transfer fee of the selling club as we were able offer full amount upfront.

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  • lochinvar

    Apr 23, 2015 at 5:16 PM

    Comment #37

    False economies by Ashley.
    Surely if the team was strengthened and played exciting football the TV coverage which is global would increase the fan base around the world . That would lead to more merchandise sales and the value that Ashley could realise on selling us would be greater.
    Maybe I missed something but Ashley doesn’t seem to have any future plan which makes all so dire.

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  • Average_Contents

    Apr 23, 2015 at 5:22 PM

    Comment #38

    Ed
    That information is clearly biased to some of course.

    How dare anyone question the business genius. How dare anyone question why revenue (not including TV money otherwise we’d be in the shit) is less than it was before he took over. How dare anyone question why the debt has near doubled.

    How very dare we question ANYTHING.

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  • John Tudor

    Apr 23, 2015 at 5:23 PM

    Comment #39

    the mans a cockheed

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  • John Tudor

    Apr 23, 2015 at 5:25 PM

    Comment #40

    adam johnson dirty twasted
    lets see him get out of this

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