Newcastle United have filed their annual accounts for the last financial year – 1st July 2016 through June 30, 2017, when we were in the Championship.
The figures should be available in full next week.
During that financial year, Newcastle made an operating loss of £90.9M and in the previous year, we made a profit of £0.9M.
Managing Director Lee Charnley
That’s a huge loss – the biggest ever for the club and it’s due to the dramatic decrease in revenue we got while in the Championship.
That’s mostly made up of TV revenue – which is massive in the Premier League – we got £123M for last season.
And for this particular financial year, it was about £47M.
The total Newcastle revenue dropped by about a third.
The Newcastle wage bill was monumental at £112.2M – a £37.5M increase on the previous season.
Revenue came in at £85.7M from the previous £125. and that’s a drop of 32.0%.
The loss after tax was £41.3M, down from a £4.6M profit the previous year.
It’s good (lucky?) we were immediately promoted because we could have collapsed financially if Newcastle had to have another year down below.
Well done to Rafa and the players.
Mike Ashley loaned the club £15M as a lump sum last season, and the total amount the club now owes Ashley is £144M.
Here’s the club statement from Lee Charnley that was released:
“Even taking into consideration the fantastic levels of support during our Championship season, such is the disparity in central broadcasting and commercial revenues between the Premier League and EFL, we are reporting a drop in annual income of almost one third.”
“An immediate return to the Premier League was vital to restore the financial stability and future prospects of the club.”
“With the support and backing of the owner we took what was, in essence, a financial gamble on securing immediate promotion.”
“Statistics show how difficult this has been to achieve in recent times, with only five of the 18 teams relegated over the previous six seasons having come straight back up (one via automatic promotion and four via the play-offs).”
“We were the only relegated club to achieve an immediate return to the Premier League.”
“We were therefore under no illusion as to the scale of the challenge we were facing,”
“Retention of the manager and key members of his coaching team, together with a significant spend to reshape the squad for Championship football, gave us what we felt was the best possible chance of success.”
“They were some high-profile departures including Moussa Sissoko, Gini Wijnaldum, Daryl Janmaat and Florian Thauvin.”
“In addition to Dwight Gayle , Matt Ritchie and Matz Sels, who joined us in June 2016, a further nine players followed in the financial years 2016/17: Christian Atsu, Ciaran Clark, Mo Diame, Jesus Gamez, Isaac Hayden, Grant Hanley, Achraf Lazaar, Daryl Murphy and DeAndre Yedlin.”
“Whilst sizeable transfer fees were earned for the players who left, the cash profile of these deals results in the fees being receivable over periods of up to four years.”
“Our ability to withstand the financial impact of relegation, and adopt the approach that we did, was therefore only made possible by the continued financial support of our owner, who injected a further £15M interest-free loan into the club in 2017.”
“Gaining promotion was the first priority and retaining our Premier League status was the second, both of which were achieved through considerable hard work, at all levels of the club, across every department, and thanks in no small measure to the magnificent support of our fans.”
That’s a lot to take in in one go – but basically, the financials for the one year down below were a lot worse than we had thought.
It was basically due to the enormous wage bill and the drop in revenue of about one third.
It gives some credence to why Mike Ashley wants to make sure the club is financially stable this year.
But there should still be ample money to give Rafa for new players.
Newcastle took a huge risk and by everybody pulling together, we were promoted.
Fortune favors the brave.
And last season everybody pulled together to finish in 10th place and we get a massive £123M payout from the PL which will help the club financially.
People will write books about the Rafa-led Newcastle team over the last two seasons and how brilliantly the club did under his inspired leadership.
There’s no way Rafa can be allowed to leave the club!