The results of the last financial year though June 30th last year have just been released and that was our last season in the Premier League – getting the big bucks because of the TV rights revenues.
The Newcastle revenue is £4.1M less than the year before and the profits after tax were £4.6M in 2015-2016 compared with £32.5M the year before – so that’s a huge decrease.
The wages as part of overall revenue also went up by over 9% to pay for new players coming into the club like Aleksandar Mitrovic, Gini Wijnaldum, Chancel Mbemba for the full year and Jonjo Shelvey, Andros Townsend and Henri Saivet for half a year.
Lee Charnley – Managing Director
Here are some of the figures for the last financial year compared to the year before as reported on the Newcastle web-site today.
|Operating Profit £M||0.9||19.1|
|Profit After Tax £M||4.6||32.5|
|Wages To Revenue %||59.4||50.1|
|Cast At Year End||1.7||48.3|
Notice that when the financial year closes this June 30th we will have a big (huge) drop in revenues due to being in the second division.
That’s even allowing for the parachute payment of around £40M relegated Premier League clubs get for the first year down below.
The loans from Mike Ashley remained unchanged at £129M and are interest-free loans.
But in the current financial year (2016-2017) the owner has already loaned the club more money to survive, given we get much lower revenues in the Championship.
We’ll be looking at the financials in greater detail later today.