The Key – This Is Newcastle’s Likely Revenue For Next Season

Newcastle’s Lee Charnley and Mike Ashley are said to be working on the budget for next year, which must be the most important topic of interest for everybody concerned at Newcastle at the moment, because it will be how much money the club has to run on in the next financial year.

In the last two years we have had close to £80M from the Premier League and maybe a little less when we get our allocation this month.

That will be cut to £2.5M next May in the Championship, but with a parachute payment of 55% of what we get from the PL this month –  the total amount from the broadcast part of the revenue should be should be about £40M.

mike ashley lee charnley

Mike Ashley and Lee Charnley on Sunday
What a disaster

Here’s the latest financial figures we have from the 2014-2015 financial year with the other two parts of the revenue in addition to broadcast – the matchday and commercial.

nufc revenue split 2014-2015

The matchday revenue – what we get from the games at St. James’ Park – brought in £26.8M and the commercial revenue was £24.9M.

So if we assume these remain constant for the coming season we would have revenues of around £51.7M from these two sources.

That would mean a total revenue of £91.7M.

But the matchday revenues would be reduced because the season ticket prices would decrease and also the attendances would decrease maybe to around 45,000 for the home games.

We are not sure what happens with the commercial revenue from Wonga and others – and whether that is reduced because of the lack of exposure and TV appearances of Newcastle in the Championship next season.

Say there is some reduction in commercial and matchday revenues – let’s say we get 2/3 (66.67%) of it – so Newcastle could be looking at around £34M from those two revenue sources – so our total would be around £74M.

That’s higher than the £53M we got the last time we were in the Championships seven years ago – close to 50% more.

Newcastle would also have to sell some of our top players to get some transfer funds for Rafa to spend this summer on new players.

If we sell players like Cabella (£6M), Thauvin (£10M), Sissoko (£10M) and Wijnaldum (£15M) – there’s £41M.

And we don’t know how much we currently have in the bank (cash on hand), although in March Ashley said there was no money left, but we will be getting close to £80M from the Premier League within the next week or so.

The revenues for next year are a lot higher than when we were last relegated seven years ago – as you may expect – but it would reduce significantly the next season, as the parachute payments reduce and eventually go away.

That’s  one reason it is so crucial we come straight back up next May.

But it’s not too disastrous if our revenues are around £74M in the next financial year which starts July 1st – assuming the above assumptions are sensible.

And it would be an excellent time for Sports Direct and Mike Ashley to start to pay for all that free advertising – and £10M/year for that would be very welcome,  starting immediately.

That would mean around £84M revenues for the next financial year and a nice jump in commercial revenues for the club.

As an overall look at things we have listed below Newcastle’s revenues over the time Mike Ashley has owned Newcastle.

You can see how Newcastle’s revenue in the next year will take a gigantic fall and it’s even worse than that when you think if we had remained in the Premier League those revenues would be at around £180M with the new increased TV rights deal.

🙁 🙁 🙁

newcastle revenues

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22 comments so far

  • lesh

    May 19, 2016 at 9:36 AM

    Comment #1


    Have we overlooked this season’s prize money from Prem? Unless I’m wrong, there’ll be about £70m.

    When do the parachute payments come in? At the end of next season, phased?

  • Jib

    May 19, 2016 at 9:40 AM

    Comment #3

    I’m betting Ed didn’t work in the accountancy section of IBM.

  • martoon

    May 19, 2016 at 9:46 AM

    Comment #4

    Lesh – I think you’re right we’ll still get our premiership money for this season. I would also imagine a lot of our matches will be on Sky so that should be a nice little earner although not so good for fans with Friday night matches etc.
    I like the way Ed says “But the matchday revenues would be reduced because the season ticket prices would decrease” – Well as a ST holder I have heard nothing and I’m expecting the price to stay the same because you get more home games for your money.

  • sickandtired

    May 19, 2016 at 9:50 AM

    Comment #5

    About time this so called brilliant businessman actually created some additional commercial revenue for this club. We are still below the level of when he arrived here 9 years ago.

  • Veltmann

    May 19, 2016 at 9:53 AM

    Comment #6

    Fair play for those who voted for Mbemba as he has been excellent since arrived.But my player of the season is Rob Elliot.Another unsung hero.
    Good to know there are still some fans available who spout reasonable and balanced view.

  • Jib

    May 19, 2016 at 9:55 AM

    Comment #7

    Ed has added next years parachute payment to this years revenue !!!

  • El Sleeve

    May 19, 2016 at 9:55 AM

    Comment #8

    He could pay an extra £10m in SD advertising. no more interest free loans

  • premier

    May 19, 2016 at 9:57 AM

    Comment #9

    where is the idiot coming from to pay £41m for those 4 players!

  • Tsunki

    May 19, 2016 at 9:57 AM

    Comment #10

    St prices reduced? I doubt it. One thing Ashley has done is make a reasonably cheap match day out of it, just the entertainment on offer was usually supplied by the visiting turn 🙁

    I’m not sure about 45k attendances either, if Rafa stays and we have a half decent squad banging goals in I doubt there’ll be much drop.

    I think the revenue figures might shake up a bit seeing as we are considering figures from last financial year mixed with the coming one a bit here…..

  • Tsunki

    May 19, 2016 at 9:58 AM

    Comment #11

    Ah. Well done Jib, you spotted that while I was typing.

  • cyprus

    May 19, 2016 at 9:58 AM

    Comment #12

    Ed my man,
    leave those numbers alone mate, too many guestimates. Anyway, it’s not just the figures, it’s how you use the money. Given what we’ve spent we should be top 6, easily, today.

    Ed, you stated, ‘Remy Cabella and Florian Thauvin are two players who don’t seem to be the type of players Rafa would be interested in keeping.’ What do you base that on? What kind of players does Rafa seem to be interested in?

    And, once we sign Rafa, can we tone down the adulation, until at least we achieve something. Interesting read, from the horse’s mouth: Cult of Personality and Its Consequences, by Soviet leader Nikita Khrushchev

  • BandB

    May 19, 2016 at 9:59 AM

    Comment #13

    We’ll get our full year’s Premiership pay for season 2015-16 next month.
    That is just over £72m.
    It is what we would have received had we not been relegated, and quite a lot of money by any measure.

  • one fine day

    May 19, 2016 at 10:09 AM

    Comment #14

    Anyone in aus know if the championship will be shown on fox here next season?
    What all the changes and Optus taking over the prem rights just hoping at least a few games may be on .

  • gaz 44

    May 19, 2016 at 10:09 AM

    Comment #15

    Cyprus , Rafa seems to like players with a work ethic so I imagine he wouldn’t like them two also

  • YouCouldn'tMakeItUp

    May 19, 2016 at 10:10 AM

    Comment #16
  • cyprus

    May 19, 2016 at 10:12 AM

    Comment #17

    If you compare us with most other Ch. sides, we are much better off. Of course this could change if we stay down there a few years.

  • Jail for Ashley

    May 19, 2016 at 10:12 AM

    Comment #18

    I think there’ll be 52K for the first home game if Rafa is there, the away end will be full and I’ve a feeling that the feel good factor will still be with us after the Spurs game.
    What do we do about a LB, do we stick with Dummet and Haidara until we get back to the PL or take a punt on an up and coming youngster who will go on to shine and keep Dummet as back up and Haidara back to France.

  • YouCouldn'tMakeItUp

    May 19, 2016 at 10:13 AM

    Comment #19

    We are approaching June, which has classically been “amateur accountant month” on this blog. I am hoping it is skipped this year.

  • one fine day

    May 19, 2016 at 10:16 AM

    Comment #20

    Thought arsenal would be in for him seen as the only teams he seems to lift against are spurs and chelsea 🙂 play him for 4 games a year and there’s 12 points on the board …oh but hang on that’s cos he wants move to champions league team .. and well arsenal are already?…I’ll get me coat


    May 19, 2016 at 10:16 AM

    Comment #21

    Yippee an accountancy thread…yep thems some figures and things

    Anyway I listened to the whistleblowers podcast this morning and they aren’t too impressed with NUFC going into the championship, they think Neecastle will get a huge shock and Rafa isn’t capable of dealing with the league (also he won’t know who to bring in etc) plus apparently Newcastle fans were arrogant last time we were down there and should of accepted our place with Leeds and Forrest fans (they neglected to mention how we dominated the league though must of slipped their mind)

    Needless to say I doubt I shall listen to it again

  • one fine day

    May 19, 2016 at 10:17 AM

    Comment #22

    Are we still planning the open top bus tour around the city this year as balance sheet champions ?


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