Newcastle Should Take The Lead And Lower Ticket Prices

In the last financial year through June 30th of last year the graph shown below is the split of revenue for Newcastle between broadcast, commercial and matchday – the total revenue being £128.8M, which was the 17th highest in world football.

Notice that the match day revenue is down to 21% and that was much much higher in years gone by.

This financial year through the end of June is on the same old three year deal and the match revenues should remain around 21% for the financial year ending at the end of June of this year.

graph (1)

This was the split in the two previous financial years.

graph

graph (1)

Notice also that from season 2012-2013 to season 2014-2015 matchday revenues have more than halved as a percentage of Newcastle’s total revenues.

In the new deal starting this summer Newcastle should get about £55M more from the broadcast (Premier League TV rights) than we have received in the last two years.

So based on that and assuming no increase in commercial or match day revenues –  the revenue we get should be around £185M and therefore match day revenues should fall to around 14.2% of the total.

Broadcast revenues would rise to about £132M of the £185M total, which is a little over 71% – so broadcast revenue starts to be the big factor and the reality is that matchday revenues are becoming a smaller and smaller part of the revenue picture.

So for the financial year through June of next year under the new PL TV deal, this is the likely split of revenue for Newcastle.

graph (2)

This will be true for other PL clubs too, so put the price of tickets up – as Liverpool had the cheek to try to do this week – is simply ripping the fans off – and if anything the PL clubs should be reducing the ticket prices to make the games more accessible to supporters.

We have to remember that fans are not rich – unlike the the owners, players and managers of Premier League clubs.

So it’s good that Newcastle have announced that all standard season tickets for the U-18s at St. James’ Park will be reduced by up to 54% for next season.

The club says the new pricing structure, which will be confirmed in coming weeks will see young people under the age of 18 paying as little as £3 per match.

That’s good – but Newcastle could also set an excellent  precedent by making all season ticket prices cheaper  across the board – or at the very least freezing them now for future seasons.

The club have essentially done that for fans paying for season tickets over multiple years – and those prices have been held steady.

It would be a great move by Newcastle to be a leader in this – after Liverpool’s American owners got a deserved black eye for attempting to raise their ticket prices.

This is what Lee Charnley, Managing Director at Newcastle has said:

“While the debate around Premier League ticket prices continues, we want to ensure watching football at St. James’ Park remains affordable for as many people as possible.”

“There is a clear risk that clubs could lose generations of supporters with the cost being a major factor and we have considered that when setting prices for 2016/17.”

“We want to encourage more families to attend and ensure that the price of a ticket does not become a barrier for our youngest supporters.”

Reducing the ticket prices and giving fans at Newcastle a really good deal could also help to get sellouts for every home game – which will only help the team on the pitch.

And good performances on the pitch will lead to more money from the Premier League every May.

Sellouts n every home game was always the case when Kevin Keegan and Sir Bobby Robson were managing the club.

This would be one single step in getting Newcastle back to greatness again – and if Leicester City can top the Premier League then Newcastle United can do the same.

Oh, by the way did I say this was all dependent on us staying in the Premier League this season?

Comments welcome.