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 – Newcastle Managing Director
Here are Newcastle’s full profit and loss figures for the last financial year.
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%
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.
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.
The bottom line is nothing new – we are in great shape financially and in terrible shape on the pitch.
Comments welcome.
117 comments so far
sickandtired
Apr 23, 2015 at 5:26 PM
Comment #41I’d still like to know who those people/players were which resulted in an extra 16.6 million of wages?
We brought in 6 during January ’13, Kemen the previous Summer, + Remy and De Jong on loan.
We released / sold 6. That’s a difference of only 3.
Playing/coaching side of staff increased by 15 though for the accounting period (118 to 133) – reductions everywhere else except 1 extra Admin position.
Belfast
Apr 23, 2015 at 5:26 PM
Comment #42It would have been a lot smarter to slash ticket prices last weekend. I think more will turn up this week because it’s not on TV tbh
sickandtired
Apr 23, 2015 at 5:28 PM
Comment #43Err, Jan ’14 sorry!
Belfast
Apr 23, 2015 at 5:28 PM
Comment #44Just been reading that John Tudor. Will the nonce be sacked ?
Belfast
Apr 23, 2015 at 5:30 PM
Comment #45I suppose he’s still innocent at the moment, but they must have had a good bit of evidence to charge him.
Our Toon
Apr 23, 2015 at 5:34 PM
Comment #46Magpie
If you think about it sky and BT only bid for a number of games as part of a package, later they decide which games they will show but they don’t own the rights to all the games. They only broadcast the ones they have chosen. All other games are owned by the FA and under the premier league.
In cricket you don’t have 6 or 7 games starting at the same time and finishing at the same time. Broadcasters abroad show games which they’ve bought the rights to its a separate deal to the one Sky and BT bid for.
Mister Tuff
Apr 23, 2015 at 5:34 PM
Comment #47If Blackley the dodger, went shopping and saw his reflection in the shop window he’d start arguing with the reflection.
His missus probably makes him go to the match to get shot of him for a couple of hours of peace.
Grantosuk
Apr 23, 2015 at 5:35 PM
Comment #48Could the massive increase in wages be taking into account some signings over the summer that have agreed a contract?
Smart move if so, we still show a profit and growth and have signed players for effectively free where next years financials are concerned.
BandB
Apr 23, 2015 at 5:40 PM
Comment #49Grantosuk
Do you mean that last year’s accounts include wages paid to players who won’t become employee’s for another two months at least?
John Tudor
Apr 23, 2015 at 5:42 PM
Comment #50dont think so pity
Our Toon
Apr 23, 2015 at 5:44 PM
Comment #51The Premier League is broadcast to over 600+ million people in over 200 countries worldwide,[73] often on networks owned and/or controlled by 21st Century Fox (which owns about 39% of BSkyB in the UK). The Premier League’s production arm, Premier League Productions, is operated by IMG Productions and produces all content for its international television partners.
The Premier League is particularly popular in Asia, where it is the most widely distributed sports programme.[74] In Australia, Fox Sportsbroadcasts almost all of the season’s 380 matches live,[75] and Foxtel gives subscribers the option of selecting which Saturday 3pm match to watch.[76] In India, the matches are broadcast live on STAR Sports. In China, the broadcast rights were awarded to Super Sports in a six-year agreement that began in the 2013–14 season.[77]
In the United States, NBC Sports (primarily through NBCSN) is the exclusive broadcaster of the league in the U.S. in English (Telemundo and Mun2 now carry Spanish-language coverage) as the result of a three-year, $250 million USD deal with the league.[78] All games are also carried through NBC Sports’ website and the “NBC Sports Live Extra” app.[79] As of the 2013–14 season, Canadian broadcast rights to the Premier League are jointly owned by Sportsnet andTSN, with both rival networks holding rights to 190 matches per season.
Belfast
Apr 23, 2015 at 5:59 PM
Comment #52I wonder how much the TV deal is actually worth once they sell it to all the other foreign broadcasters ? That 5.1 billion is only Sky and Bt. Crazy money.
jesperfuglsang - capt'n awesome of the lemon crew
Apr 23, 2015 at 6:09 PM
Comment #53Our Toon #2…exactly!
…I have tried to paint a picture of this for a while now…people it’s rather simple! If you don’t go to games Mike won’t get paid – I am not talking about your money, but the TV-revenue!
Why do you think he’s giving away the tickets???
Average_Contents
Apr 23, 2015 at 6:15 PM
Comment #54Jesperlemon
It’s most definitely not out of the kindness of his heart. That much is clear.
Average_Contents
Apr 23, 2015 at 6:18 PM
Comment #55Made SSN again. But it wasn’t a success was it.
http://mobile.newsnow.co.uk/A/769671238?-11058:809
IrishGeordie9
Apr 23, 2015 at 6:39 PM
Comment #56Jesus Christ that Blackley is a right knobhead. Clearly a troll. Such a sad way to spend your free time. But hey, lets all respond to him because that will bore him right? Giving him just what he wants. Ah well. You just couldnt make it up.
Belfast
Apr 23, 2015 at 6:42 PM
Comment #57You couldn’t make it up is becoming the blog catchphrase.
IrishGeordie9
Apr 23, 2015 at 6:43 PM
Comment #58Anyway, this club continues to be the worthless piece of shite that it is. It really is laughable. We dont deserve this league :/
BandB
Apr 23, 2015 at 6:43 PM
Comment #59IG9
He hasn’t posted for a world record 100 minutes.
Why not take your own advice, huh!
IrishGeordie9
Apr 23, 2015 at 6:46 PM
Comment #60BandB
My message isn’t directly to him and I will definately be taking up my own advice.
Average_Contents
Apr 23, 2015 at 6:49 PM
Comment #61He’s probably looking for that other clutch.
GeordieTwo
Apr 23, 2015 at 6:51 PM
Comment #62Interesting to look at the Swiss Rambler’s analysis. Our costs have definitely gone up quite a bit. Paying this group of players higher wages? That doesn’t make sense to me. We’re up to 78M pounds in wages. Ridiculous. The squad is poor. Players like Obertan are vastly overpaid. Only a football fool would do that Ashley. So I guess that means you really are a football fool.
IrishGeordie9
Apr 23, 2015 at 6:52 PM
Comment #63I would play this team against Swansea: To anyone that cares.
———–Krul
Satka-Janmaat-Colo-Anita
———Colback
—Perez-Abeid-Gutierrez
—-Armstrong-Riviere
Ameobi
Gouffran
Obertan
They just don’t care.
Bench:
De jong
Ferreyra
Kemen
Taylor
Williamson
Ameobi
Obertan
welshgeordie9
Apr 23, 2015 at 6:53 PM
Comment #64Well well well i thought my ears were burning.
23Pokat // Apr 23, 2015 at 3:33 PM
I’ve noticed Mr Benwell always slags off anyone’s humour but his Welsh sidekicks which is ironic as anyone’s humour is better than the pathetic f**ting noises the lad from the valleys chimes in with lol. Do you two share the same digs?
Ha ha ha
I take it mate that you jealous because I’m the only comedian on this blog.
Don’t worry i would be the same if i was you.
GeordieTwo
Apr 23, 2015 at 6:54 PM
Comment #65Keeping the ground half empty for the remaining home games will increase the pressure on Ashley enormously. He is a football fool and he does need a proper Director of Football not Lee Charnley, and a proper manager not John Carver and proper players not Riviere, Willo, Obertan etc. etc.
welshgeordie9
Apr 23, 2015 at 6:56 PM
Comment #66How Is Blackley a troll, what, just because someone dosent agree with another persons comment.
GeordieTwo
Apr 23, 2015 at 6:56 PM
Comment #67Ashley loves giving tickets out for nearly nothing to watch sh*te. Don’t fall for it mates. Stay away. Let the fool look at a half empty ground.
IrishGeordie9
Apr 23, 2015 at 6:58 PM
Comment #68G2
Yes, he does need a proper director of football, a proper team. But let’s not forget that it is his fault we have these people. He hasnt got a f**king clue what it means to be an owner and that fact shows through so clearly.
GeordieTwo
Apr 23, 2015 at 7:00 PM
Comment #6978.3 M pounds in wages for that load of tripe? Unbelievable. I wouldn’t pay Obertan minimum wage. As for other clowns like Ferrerya, give him back to his own club. Whatever we’re paying him is too much. I thought you were a brilliant businessman Ashley? Yet you are paying high wages to dross. Tut tut you football fool.
GeordieTwo
Apr 23, 2015 at 7:00 PM
Comment #70Spot on IG9 mate @68.
IrishGeordie9
Apr 23, 2015 at 7:02 PM
Comment #71Welshie welshie welshie…
Right, I understand that you support anyone who trolls on this site. Because thats what you guys do, right? But you just can’t be serious if you don’t think he’s a troll. Constantly looking for arguments is a huge sign to say the least.
Jail for Ashley
Apr 23, 2015 at 7:05 PM
Comment #72I take it nobody’s heard Carvers interview tonight with Mick Lowes claiming the majority of fans will think that Mike has done a good job with the club. Ffs, John Anderson is on a clear stadium ban and an end to his career if he says anything out of place.
GeordieTwo
Apr 23, 2015 at 7:05 PM
Comment #73Yes, the Swiss Rambler has gotten to the bottom of it. Our costs have gone up by a huge amount. We have to pay all those fantastic players like Obertan, Riviere, and Ferrerya big wages you know. It’s because they are such fabulous players and every other team is after them. Right Mike?
GeordieTwo
Apr 23, 2015 at 7:08 PM
Comment #74And of course our made of glass players like Saylor and De Jong have to be paid big wages as well. Just think what we’ll be paying if Mike brings in some more cheapish, youngish players from Europe in the summer? It’s so exciting to think of the dross we’ll have accumulated by next season to drag down the club and raise the wage bill.
jesperfuglsang - capt'n awesome of the lemon crew
Apr 23, 2015 at 7:08 PM
Comment #75Does anyone have a detailed list over wages for each PL club?
…I think something is rotten in the state of Denmark…or in this case Newcastle!
Mike is doing something here with the figures…maybe not illegal but he’s camouflaging the real figures somehow!
BandB
Apr 23, 2015 at 7:09 PM
Comment #76We spend a lot of time discussing three people on here.
That’s right. Three.
It gives the feel that the blog is deeply riven, when it isn’t.
Who wins?
Not us.
Form table LLLLLL
Newcastle v Sunderland LLLLL.
Any anger not directed at these figures is anger wasted.
IrishGeordie9
Apr 23, 2015 at 7:09 PM
Comment #77This is a great opportunity to show big mike what he is up against. How much of a fool would he look if he lowered the prices for nothing? This is our chance to show Ashley where we stand. We can do either of two things:
Show Mike that enough is enough and that we are serious about these protests by not going even with the prices lowered.
Or
Give in to the fact that it is now cheaper to go. Ashley will then know that everytime we threaten to protest he can just reduce ticket prices and bobs your uncle. Protest gone.
Hopefully the former.
HWTF
welshgeordie9
Apr 23, 2015 at 7:12 PM
Comment #78Irish Irish Irish……..
I dont support trolls so I don’t know where you get that from, speaking of which, if you for example you didn’t agree with a lot of comments that jail makes does that make you a troll, just asking like.
jesperfuglsang - capt'n awesome of the lemon crew
Apr 23, 2015 at 7:13 PM
Comment #79AC…it most certainly isn’t 😉
DisillusionedMagpie
Apr 23, 2015 at 7:14 PM
Comment #80So with only Remy, De Jong and kemen coming in and Cabaye going out, how did the wage bill go up by 320k per week?
Am I missing something??