Newcastle United Now Worth More Than Half A Billion Pounds


In some of the articles written lately on this blog I said maybe Newcastle were worth around £300M now we are back in the Premier League with a world-class manager in Rafa Benitez.

But I may have to think again, because Kieran Maguire, who is a lecturer on football finance at Liverpool University, has come up with an estimate of the 20 Premier League clubs based on their accounts for the last financial year – 2015/2016.

So these are for the financial year through 30th June last year.

Newcastle United are valued at £568.2M based on the way Maguire has estimated the value of the clubs.



The estimates are for the Premier League clubs for season 2015-2016 – when we were relegated – but did have Rafa Benitez as the manager.

Not sure how much we were worth in the last year in the second division  – certainly not £568.2M.

Obviously Kieran Maguire didn’t take into account we were a second division side in May last year.

But since we are back in the Premier League and will have increased revenues next year compared to the 2015-2016 financial year – we may currently be worth even more than the Maguire estimate of £568.2M.

Here are Kevin Maguire’s estimates:

  1. £2.297B: Manchester City
  2. £2.232B: Manchester United
  3. £1.265B: Arsenal
  4. £1.151B: Tottenham
  5. £1.050B: Chelsea
  6. £589.3M: Liverpool
  7. £568.2M Newcastle
  8. £376.4M: Leicester City
  9. £248.3M Southampton
  10. £249.5M: Norwich
  11. £229.5M: Stoke City
  12. £211.1M: Everton
  13. £169.7M: Crystal Palace
  14. £166.8M: Bournemouth
  15. £161.8m: West Brom
  16. £161.7M: Aston Villa
  17. £148M: West Ham
  18. £131.7M: Sunderland
  19. £125M: Watford
  20. £113.5M: Swansea City

It’s very difficult to estimate what a club is worth on the open market, but with the new £5.1B TV rights deal clicking in this season. it’s not surprising the PL clubs’ values will have increased based on their increased revenues.

The fact the PL clubs are also seen regularly around the world on TV in what is the most popular sports league in the world will also help.

We are listed there as the 7th most valuable club in terms of worth in the Premier League so we probably need to finish at least 7th in the league next year?

And  notice there’s almost a £200M difference in valuation between 7th and 8th place.

Sunderland are valued at £131.7M in 18th place.

This is also something that Rafa can add to his blueprint before he meets with Mike Ashley this week.

🙂

It will be interesting if Kieran Maguire does his estimates at the end of next season for the financial year ending June 20th 2018, how much Newcastle United would be worth.

It’s got to be more than the current figure.

We are back in the big time.

What do you think?

Comments welcome.



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76 comments so far

  • sparky55

    May 9, 2017 at 9:26 AM

    Comment #1

    Fabregas would make all the difference in the No 10 role to just about any team and would be great for the toon…but he’s a London boy and would never make the move up here for project Rafa.

    That valuation is bollox

    anyway…re Fabregas…We have to be realistic…we need to move for people that haven’t already lived in London or Manchester because her indoors will always put the Kibosh on any move up North.

    methinks we’ll be switching from importing French talent to importing Spanish talent mixed with some English players who are unfortunately no-where near the levels of the likes of Fabregas

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  • sparky55

    May 9, 2017 at 9:28 AM

    Comment #2

    but hopefully some stupid chinaman somewhere will believe the figures and buy out Fat boy and good riddance

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  • Ibizatoon

    May 9, 2017 at 9:28 AM

    Comment #3

    I’d like to see the math on this. We’re really only valued at £20m less than Liverpool?

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  • nut meg

    May 9, 2017 at 9:28 AM

    Comment #4

    repost
    I could only watch a few games on line and some of them were of poor quality, so can’t really give an opinion on a radio commentary..What I can say however is that whoever wins the player of the season award can certainly hold their head high.

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  • Lee Charnley Bunga Party

    May 9, 2017 at 9:34 AM

    Comment #5

    What this table does show is our potential we really should be up there in terms of challenging the top 4!

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  • expatmag

    May 9, 2017 at 9:45 AM

    Comment #6

    Interesting that he rates the likes of Stoke Norwich Leicester and Southampton above Everton.

    I doubt any of these teams have an asset that is valued at £80 million alone in Lukaku

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  • Tsunki

    May 9, 2017 at 10:01 AM

    Comment #7

    Question this summer will be whether Ashley has already reached his goal i.e. PL residency, and will cut his cloth to a suit if mid-sized proportions. It’s like tax thresholds – if you aren’t prepared to upscale the enterprise to compete with the big boys, better not bother, settle just under the threshold and make the same profits but far more simply and with less risk. He’ll be tempted to float around mid table again methinks. Will Rafa convince him that competition is the key? As has often been said, you need to continue improving just to stand still.

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  • lochinvar

    May 9, 2017 at 10:04 AM

    Comment #8

    Top 7 already and we haven’t even played a game yet – amazing what Rafa has achieved

    Look out scousers we’re after you !

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  • posada

    May 9, 2017 at 10:09 AM

    Comment #9

    I support the North East’s Premier Club.

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  • Ibizatoon

    May 9, 2017 at 10:09 AM

    Comment #10

    Tsunki…A look at the PL table says all you need to know about floating around mid-table. 11 points separate 8th (45 pts) and 18th (34 pts). That’s 4 games (in theory), just over 10% of the season as a margin between mid-table target or relegation. Too close to gamble on imo and I don’t think Rafa will share the same target.

    However, the jump from 8th up may be a step too far on our first season back up in the PL.

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  • YoungMagpieFromBurnley

    May 9, 2017 at 10:10 AM

    Comment #11

    Now Ashley has won something is he gonna leave? 🙂

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  • YoungMagpieFromBurnley

    May 9, 2017 at 10:13 AM

    Comment #12

    No such luck, premier league is a gold mine. He’s staying for sure.

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  • posada

    May 9, 2017 at 10:16 AM

    Comment #13

    I seriously don’t want us to be associated with any type of fly over message at the SOL.
    I know it has now been given a charitable theme, but for me that’s just trying to claim the moral high ground.
    We have never measured our success or failure against that other team.
    They do.
    Does anyone agree/disagree.

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  • AncientC

    May 9, 2017 at 10:17 AM

    Comment #14

    The valuation will have dropped, you can also deduct the debt from the value, so Ed was probably accurate with an estimate of £300 million.

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  • Ibizatoon

    May 9, 2017 at 10:20 AM

    Comment #15

    Posada…I tend to agree with you, best to rise above it.

    However, if they must, at least the message they’re getting across is less petty, but at the end of the day, everyone knows what it’s about and it isn’t charity or goodwill imo.

    Not a biggy for me either way really.

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  • jimmysmith

    May 9, 2017 at 10:20 AM

    Comment #16

    That’s the season we spent all that money, and Klopp remarked “no one knows why Newcastle are down there” and even Rafa confidently assured the owner when he came in that we wouldn’t go down, despite being in the bottom 3 with ten games to go. It’s almost criminal in fact that we did, given the value and capacity of the squad that term. How did Charnley survive the debacles of appointing Carver till the end of the previous season and then McClaren? Surely those two monumental errors of judgement relegated us.

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  • posada

    May 9, 2017 at 10:24 AM

    Comment #17

    Jimmy
    You say Charnley got away with two bad appointments.
    The only explanation is that it was not his decision.
    He’s an administrator and they were football decisions.
    It had to be Carr and sanctioned by the owner.
    Otherwise he would surely be history.

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  • AncientC

    May 9, 2017 at 10:27 AM

    Comment #18

    I read TheMag article on this same subject, and Man City was rated higher than Man Utd because Man City doesn’t have the debt that Man Utd has. That must mean that our club debt was included in that valuation of over £500 million.

    It is like Ibiza stated, I would like to see the math behind that one.

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  • cyprus

    May 9, 2017 at 10:28 AM

    Comment #19

    Been away
    Hope it’s all been love and patting of collective backs.
    Thanks Rafa and players, and administration from top to bottom for bringing so much joy, even the icing on the cake.

    On valuations, we’re the same value as Liverpool?! That can’t be right. But we’re worth half a billion, definitely.

    On investment, 150 is a nice figure to bounce around, as it assures we’ll get something crazy, like only 😉 70 million.

    On best players, gave my vote to gouff, to spread the love. Of course, really it was Ritchie, Gayle, Clark, in that order. But to win this, you need the whole team and we had that.

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  • hibbit

    May 9, 2017 at 10:30 AM

    Comment #20

    ashley appointed john carver thought he would wing it and save sume money
    i believe we had already approached mc brolly !!

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  • Ibizatoon

    May 9, 2017 at 10:31 AM

    Comment #21

    Ancient…Was just typing that to you.

    It doesn’t appear to be based on assets etc, but more a company value formulae based on projected profits. Similar to when a company gets floated I presume?

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  • Ibizatoon

    May 9, 2017 at 10:33 AM

    Comment #22

    Not sure I have the stomach to get in to the who decides what out of Ashley, Charnley and Carr, or at least, who used to decide.

    All I know is I don’t blame the lower in the food chain for being appointed higher than his remit, if that is indeed what happened.

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  • Jail for Ashley

    May 9, 2017 at 10:34 AM

    Comment #23

    Jimmy,
    I don’t think any single factors can be pointed as to why we got relegated as there are just too many reasons to list. It is a whole host of mismanagent going back to when Llambias was in charge. The one constant factor was the now obvious policy of just wanting to stay in the PL while trying our very best to avoid EL so therefore any kind of silverware.

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  • AncientC

    May 9, 2017 at 10:37 AM

    Comment #24

    The club did make something like £100 million profit over the previous 5 years, so the value could be in the profit margins instead of assets/overall value. Although, as proven by relegation, the profit model wasn’t sustainable.

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  • posada

    May 9, 2017 at 10:38 AM

    Comment #25

    If the best you ever want to be is 10th some years you will be 10th at best.
    Some years you will be 12th or 14th.
    Once every 7 years or so you’ll have a bad year and be 19th.

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  • hibbit

    May 9, 2017 at 10:39 AM

    Comment #26

    Jail for Ashley
    only one man set those targets
    his minions just carried out his instructions
    yes that’s right Mr Ashley

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  • Jail for Ashley

    May 9, 2017 at 10:41 AM

    Comment #27

    I think one thing is certain is that if Rafa stays it’s because him and Mashers have reached some middle ground which Rafa believes can bring us success, he only needs to win a couple of cups and he will be a legend anyway.

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  • Jail for Ashley

    May 9, 2017 at 10:44 AM

    Comment #28

    hibbit,
    Yup,
    There’s no money involved in EL so don’t bother with it, ‘ow much do yer get for a cup, eh!!! Forget ’em. Mugs ‘ll turn up anyway.

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  • stan anderson

    May 9, 2017 at 10:44 AM

    Comment #29

    Who owes the money that Ashley lent his own club and who pays it back to whom ??????

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  • Jail for Ashley

    May 9, 2017 at 10:47 AM

    Comment #30

    Mashers seems to be doing alright out of relegation, everytime we go down we owe him more money, no wonder he’s been happy to see us nearly gone so many times.

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  • Ibizatoon

    May 9, 2017 at 10:52 AM

    Comment #31

    Stan…The Newcastle United (business) owes Mike Ashley (or is MASH holdings) as an investor.

    It all falls under Ashley, but each entity will be viewed individually.

    Jail…Funny that isn’t it. The finances always survive, the footballing side is always the bit that suffers.

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  • Jail for Ashley

    May 9, 2017 at 10:52 AM

    Comment #32

    Posada,
    I read an excellent article in the Mail once about that very thing, can’t remember who wrote it though so can’t find it. It was a full page article mind. Normally Martin Samuel writes them but it musn’t have been him because I’ve looked through his stuff. I’d like to read it again if I could find it.

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  • posada

    May 9, 2017 at 10:53 AM

    Comment #33

    The money is essentially owed by Ashley to himself.
    From Mash Holdings ( owned by him ) to NUFC ( owned by him ).
    If the club became insolvent it would be sold and the proceeds paid to the creditors. Namely, him in the form of Mash Holdings.
    At present there would be no point in that. I don’t think it would change unless football clubs became a thing of no value.
    The other game changer would be is MA went bust generally.

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  • posada

    May 9, 2017 at 10:56 AM

    Comment #34

    Jail
    I think I heard someone say something similar on the Sunday Supplement, but it was a while back.
    Can’t remember who.

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  • Jail for Ashley

    May 9, 2017 at 11:01 AM

    Comment #35

    posada,
    It is so true though. I am still baffled by the logic that saw us deliberately lower our sights from fifth to tenth almost getting relegated in the process. Then doing exactly the same again the next season except getting away with it for half a season before spiralling in to the type of form that would have seen you finish with record low points. What the long term effect that must have on a clubs physce is incalcuable.

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  • Jail for Ashley

    May 9, 2017 at 11:04 AM

    Comment #36

    Anyway can we change the subject before Bobbybee comes on waving his truncheon and foaming at the mouth.
    Who do we think we’ll sign this year?

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  • Lee Charnley Bunga Party

    May 9, 2017 at 11:17 AM

    Comment #37

    @Jail

    I think Rafa will look at players from the top 6 that are not getting game time with the view to a few loans to get some quality while not shelving out 30 or 40 million for the player! Also Madrid and Barca youngsters could get plundered as well!

    Players available from some of the teams on these types of deals could be Lucas Perez, Ramsey from Arsenal Millions of players from Chelsea , Ineacho , Delph from City and lots players from Man Utd as well!

    Also wouldn’t surprise me to see us go for Reina and Hernandez he likes experience and Spanish/South American quality as well!

    To be honest if he is backed by Ashley it could be our most exciting window in decades!

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  • Jail for Ashley

    May 9, 2017 at 11:20 AM

    Comment #38

    LCBP,
    If the talks go well it will most definitely be the most exciting in years. I have not been able to get excited at all about Mitro or Wijnaldum signing as it was to only serve one purpose, to keep that revolving door spinning. We are now going to see a team shaped by a top manager with a view to bringing genine footballing success. The future could be very bright.

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  • catchy in norway

    May 9, 2017 at 11:22 AM

    Comment #39

    the club can be valued at that , but it dosnt mean it’s worth it. anythings real value is what someone will actually pay for it.

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  • cyprus

    May 9, 2017 at 11:24 AM

    Comment #40

    Of course it’s not only how much you spend, it’s how you spend it.

    In seasons 14-16 we spent a whopping 90+ million. In our relegation year we were the second biggest spenders in the PL.

    Rafa has shown that he buys shrewdly, at least he did last year. To break our net spend record of all time we need to top 73,150 m. (Relegation year)

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