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Deloitte Warning To Ashley – Newcastle Must Improve Team

7:46 am, Thursday, January 21st, 2016 by Dr. Ed Harrison · 7 Comments

As we reported earlier today Deloitte have published their Money League for the last financial year through June 30th, 2015 and Newcastle are in 17th place up two places and about 4% up from the previous financial  year in revenues.

And in their review of Newcastle United, Deloitte want that Newcastle must improve their team which was in danger of being relegated on the final day of the season against West Ham – but we won the game 2-0.

That´s if we are to have any chance of going higher and regaining a top ten position we once had.

mike-ashley

Mike Ashley – Deloitte warning – team need to improve
Thinks – money, money, money


First of all here is the top 20 clubs based on revenue.

However, in playing terms  we are no better off this season  and are currently in the relegation zone in 3rd bottom place.

We have looked at the three pieces that make up the revenue and match day was particularly strong as Deloitte point out.

Newcastle continued to enjoy the third highest average attendance in the Premier League (50,500).

However, commercial revenue dipped a little so that´s not good – and it´s once again a weakness in the Newcastle financial  figures.

Here are graphs of the split of the revenue for Newcastle United that we created from the figures.

graph

graph (1)

And here is what Deloitte has to say about Newcastle overall , pointing out the terrific fan support but worried about the performance on the field – this is taken directly from the Deloitte report.

Newcastle United consolidated its place in the Money League, rising two places to 17th, despite a marginal fall in revenue of £0.9m to £128.8m. On the pitch, 2014/15 proved another hard season for the Toon Army.

Following manager Alan Pardew’s departure at the turn of the year, the Magpies endured a run of eight consecutive defeats from March onwards, its worst run in Premier League history, avoiding relegation on the final day of the season and finishing in 15th place.Newcastle continued to reap the benefits of the current Premier League broadcast deal, with a substantial 60% of revenue being generated from centralised broadcast payments.

Overall, broadcast revenue slipped by £1.1m to £77.1m, as fees derived from an increase in live TV appearances (from 14 to 20) were more than offset by the reduction in merit payments as a result of finishing five league positions lower compared to 2013/14.

After a 50% increase in 2013/14, commercial revenue reduced marginally in 2014/15 by £0.7m to £24.9m, despite a long term contract extension with Puma taking effect. With just 19% of revenue generated commercially, Newcastle’s challenges demonstrate the polarisation in commercial deals that exists between those clubs playing in, or challenging for, UEFA Champions League football and the rest.

Despite the disappointing on-pitch performance, matchday revenue grew by £0.9m to £26.8m, as Newcastle continued to enjoy the third highest average attendance in the Premier League (50,500).Newcastle’s Money League position is testament to the value of the Premier League centralized broadcast deals, and a loyal fan base filling the fourth largest stadium in English club football.

The new Premier League broadcast deal effective from 2016/17 should ensure Newcastle’s presence in the Money League in the medium term, but the club will need to significantly improve its on-pitch performance if they are to ever hope to rise to previous heights of a top ten placing.

That´s our underline with the last bit there – not Deloitte´s.

For a person like Mike Ashley who thinks money most of the time it may even be good news that Newcastle have been warned their team just has to improve on the pitch if we ever to get back in the top ten – which we once were.

Comments welcome.



Tags: Financial Fair Play · Financials · Newcastle News · Other News · Premier League




7 responses so far ↓

  • 1 carl // Jan 21, 2016 at 7:52 AM

    Our new revamped programme is the best in the Premiership.

    Jesper
    I am not playing football on Friday. You do say some daft things.
    I know I am going to regret asking! Why on Wednesday?

  • 2 Bambams // Jan 21, 2016 at 7:54 AM

    As long as Ash makes money he will not listen to anyone.
    Looks very likely we will hear ‘ we couldn’t get the player over the line’….
    Hope I am wrong and we do get the players we need.
    Fingers crossed

  • 3 sparky55 // Jan 21, 2016 at 7:55 AM

    wow…those blokes at deloittes really do earn their money don’t they!…fancy coming up with that brilliant left field idea that Ashley will need to improve his squad!

    No wonder they’re one the worlds leading consulting companies! 🙂

  • 4 jesperfuglsang - capt'n awesome of the lemon crew // Jan 21, 2016 at 8:06 AM

    Hibbitt…I have a problem with the fact that there’s a difference between what we are fed and what we are getting…

    …and that it’s so impossible to add 2 and 2 together without getting 5!

  • 5 Spoof // Jan 21, 2016 at 8:08 AM

    I doubt that Ashley would be bothered where in the money league we are, as long as he is earning money I doubt that he gives a jot

  • 6 clinath@ed // Jan 21, 2016 at 8:08 AM

    How have we gone up 2 places and swapped with Inter who have come down 2 places when we had more than them in the previous year…..am I missing something?

  • 7 jesperfuglsang - capt'n awesome of the lemon crew // Jan 21, 2016 at 8:20 AM

    hibbitt…with the way football is financed today and with exposure and foreign players and coaches in the PL I am sorry to inform you that there is not much English about that league. It belongs to all of us.




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