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Newcastle’s Financials Are Healthy – Potential Buyers Take Note


Newcastle United have released their financial accounts for the 2017/2018 fiscal year which goes from July 1st, 2017 through June 30, 2018.

Newcastle’s revenue was £178.5M – the highest ever – due in the main to getting around £123M from the Premier League for last season when we finished 10th.

In the Championship we earned only £85.7M in revenue – which is why clubs are desperate to make it to the Premier League.

The profit is a very decent at £19M and Ashley and company were cautious with the money during that time so Newcastle’s accounts will look good for any potential buyer.

But the team suffered for it, and we fought against relegation last season before pulling away and finishing in 10th place.

We will not finish as high this season.

Lee Charnley – Newcastle Managing Director

The club are saying we are now in a healthy financial position – again a message to would-be buyers.

The £93.6M wage bill is only the 14th highest in the Premier League and fell during the year.

But some players are not being used much by Rafa and are still earning high wages at Newcastle – and that should change this summer.

Managing Director Lee Charnley had this to say about the financial results:

“A 10th placed finish in our first season back in the Premier League was a fantastic achievement and I would like to thank everyone connected to the club – staff, players, and fans – for their collective efforts.”

“The significant increase in revenue, together with prudent financial management, resulted in the club showing a profit and that is reassuring, given the substantial loss in the previous year.”

“There is much more work to be done but these financial results give the club a strong platform on which to build.”

“We all want to see the club improve and be competitive at every level, and in every competition.”

“We are convinced that the best route to achieving this is to do so sustainably, spending on young development players and adding high quality to the first team squad each season.”

“Players that can really make the difference and improve the team – without risking the financial health and the stability of the club.”

“We strongly believe that consistently doing the above, and robustly following this policy, will give us the best chance of achieving our shared ambitions.”

We’ll take a deeper dive into the results tomorrow, but it’s clear that spending was restricted to make our financials look attractive to potential buyers.

How Will Newcastle Fare Against Southampton?

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Comments welcome.


147 comments so far

  • ronaldo aarons

    Apr 19, 2019 at 12:58 AM

    Comment #81

    Ah right, I thought you were calling me dodgy lol. Not saying you’d be wrong.

    2
  • NY Mag

    Apr 19, 2019 at 12:58 AM

    Comment #82

    Ronaldo,

    Yes, same – I look and google for stories and comments, but don’t interact

    0
  • toon22

    Apr 19, 2019 at 1:02 AM

    Comment #83

    Ok I hold my hands up
    Can’t remember posting that

    I was utterly wrong

    Won’t be fooled again

    5
  • toon22

    Apr 19, 2019 at 1:03 AM

    Comment #84

    NY mag

    You enjoy defending MA ?

    7
  • toon22

    Apr 19, 2019 at 1:03 AM

    Comment #85

    Just a hobby or professional?

    6
  • NY Mag

    Apr 19, 2019 at 1:03 AM

    Comment #86

    No worries, as I always said – nothing wrong with changing your mind

    3
  • toon22

    Apr 19, 2019 at 1:06 AM

    Comment #87

    Hiya KBA

    3
  • NY Mag

    Apr 19, 2019 at 1:09 AM

    Comment #88

    toon22,

    I don’t think I have ever ‘stuck up’ for mike Ashley
    I don’t want him as owner of our club any more than you do (although I do think my reasons are more realistic than yours – of course that’s just an opinion)

    Unfortunately, my comments on here are purely a hobby – I wish it was professional, I would be well happy to get paid for my (poor) contributions to this blog

    6
  • Essex Geordie Bill

    Apr 19, 2019 at 1:14 AM

    Comment #89

    NY Mag

    There is more value and commonsense in any of you’re postings than there ever has been in toon 22s

    2
  • Essex Geordie Bill

    Apr 19, 2019 at 1:15 AM

    Comment #90

    Your, not you’re.

    Blog grammar police, spare me!

    1
  • toon22

    Apr 19, 2019 at 1:16 AM

    Comment #91

    NY mag

    I can understand your stance on MA but to be fair mostly your posts are very pro MA

    I’ll not bother looking back through it’s just my opinion

    0
  • Essex Geordie Bill

    Apr 19, 2019 at 1:17 AM

    Comment #92

    Don’t think any of the accused are MA supporters, only in someones obsessive mind.

    0
  • toon22

    Apr 19, 2019 at 1:18 AM

    Comment #93

    Shame that’s not true of this blog

    1
  • NY Mag

    Apr 19, 2019 at 1:19 AM

    Comment #94

    Bill,

    Thank you for that…….unfortunately, I fear that toon22 represents more of our fan base than I do

    3
  • Essex Geordie Bill

    Apr 19, 2019 at 1:21 AM

    Comment #95

    NY Mag I very much doubt that, perhaps Ed could run a pol!

    0
  • NY Mag

    Apr 19, 2019 at 1:22 AM

    Comment #96

    Toon22,

    I can understand from your militant perspective why you think that – but I have never posted anything that supports mike Ashley (because I don’t support him)

    4
  • NY Mag

    Apr 19, 2019 at 1:27 AM

    Comment #97

    Bill,

    I would love to believe you……….maybe this blog is polarized – but, really there’s very little actual debate on the club, it’s really a binary faction – either you’re with us or against us

    2
  • toon22

    Apr 19, 2019 at 1:27 AM

    Comment #98

    That’s a good idea

    How many alts of JIB do you think agree with him

    As for being militant I’d say I’m an average fan,I’ve met people who would do the guy physical harm

    4
  • NY Mag

    Apr 19, 2019 at 1:37 AM

    Comment #99

    Toon22,

    I’m glad we’re engaging in conversation – that’s what the blogs all about………opinions!!!!!

    I say you’re militant, becasuse historically you have not engaged with people – your only opinion is what you believe and nothing else matters…….the key is post, listen, learn and respond

    You have an opinion (which is not right or wrong but is simply your own) – share it, discuss it and debate it

    11
  • Essex Geordie Bill

    Apr 19, 2019 at 1:45 AM

    Comment #100

    NY Mag

    I think you’ll find that there are a lot of people would agree with what he says, I do and I’m sure so do you, it’s the way he seems to deliberately try and alienate fellow bloggers.

    And constantly repeats the same mantra over and over, it’s something that will not shift Ashley no matter how many times he says it.

    I have challenged him to show a comment of me supporting Ashley other than in the early years when most of us thought he was the billionaire that would cherish and grow the club. No show so far however!

    2
  • NY Mag

    Apr 19, 2019 at 2:06 AM

    Comment #101

    Bill,

    It’s kind of tragic……because most people on this this blog actually have the same overall opinion of the club (and want the same thing) but because of some previous interactions – there is hostility, human nature, I guess……

    Anyway, it’s nothing I can fix (so I won’t try)……as Rafa says, it is what it is 🙂

    3
  • Tonyd3b54

    Apr 19, 2019 at 2:51 AM

    Comment #102

    Knew there would be a lot of doom and gloom after this came out. I however don’t take issue with a lot of this. Provided the enormous caveat that Rafa signs and the actions are actually carried through.

    They made a nice profit their first year back and the loan to Ashley was paid. All good IMO. They want to spend on younger development players and quality over quantity. Obvious if you ask me but I’ll take the acknowledgement. People seem to leave out there was a bit in there that they see the value in breaking this when necessary. Also did you really expect big money spent this past year when ham fist over there just loaned 33mil and wants his money back?

    Now I did see something about 100 mil available over the next 2 years plus sales so 50 mil a season plus sales profits and loans. Seems like a decent deal. You can get 1 maybe 2 quality players with that a year plus Rafa’s diamonds he seems to unearth for next to nothing.

    Now if you ask me this seems to be Rafa’s blueprint only swayed towards younger players. Add in swifter transfer process and final say on players and Rafa could very well sign and we could be looking up.

    IF THEY ACTUALLY CARRY THROUGH WITH WHAT THEY SAY!!!

    Huge IF granted…. Good if not obvious words and how the club should be run the whole time, but if Rafa doesn’t sign I’ll be back here yelling curse words with the rest of you.

    9
  • The next Mike Williamson

    Apr 19, 2019 at 3:46 AM

    Comment #103

    The finances are more or less identical to what a lot of the more sensible people said in the summer, regarding the missing money paying off the loan to help Ashley sell the club. The only thing that bemuses me is why didn’t Ashley just say I’ve took £33m out (or more if he took some of the Mitrovic money) and it would have saved himself a lot of flak. Personally I thought and hoped he’d took £70-100m from his loan, but that was including £30m+ for Mitrovic and the £20m we have kept as profit.

    I’m a little confused on one thing. Did we make a £20m profit AND pay £33m off the loan? If so that means we were approx £50m up before paying the loan.

    4
  • toon22

    Apr 19, 2019 at 3:52 AM

    Comment #104

    Since MA bought us we have been fed so many lies people just expect anything they say to be bollix
    It’s obvious MA wants something entirely different to the supporters in regards to the club

    Until he’s gone it won’t change

    5
  • The next Mike Williamson

    Apr 19, 2019 at 4:22 AM

    Comment #105

    One point of interest for me is that we have paid off £33m from Ashley’s interest free loan and now have a £25m loan from a bank from the Almiron deal. I’ve got a feeling Ashley is transferring the debt to the banks so next season if we do actually spend £50m it could be from bank loans, freeing up Ashley to take £50m off his personal loan. Why he’d do this I’m not sure. It doesn’t seem beneficial to pay the banks their interest. Only two reasons I can think are that he needs ready money to buy something else, or it somehow makes the club easier to sell.

    1
  • DubaiMicky

    Apr 19, 2019 at 4:55 AM

    Comment #106

    So Rafa’s been handed £50m for the summer + sales (Mail) https://tinyurl.com/Rafa50Mail

    or

    £100m + sales (Mirror) https://tinyurl.com/Rafa100Mirror

    1
  • toon22

    Apr 19, 2019 at 6:46 AM

    Comment #107

    I wouldn’t trust MA with some plastic straws

    I doubt Rafa would either

    3
  • Jail for Ashley

    Apr 19, 2019 at 6:51 AM

    Comment #108

    So has the asking price dropped 33M now?
    Churnleys interview was a very public slap in the face regarding the training facilities which Rafa has made clear need upgrading, their policy of young players is staying the same “with top quality added” no mention of older players their, what was that fancy word Jib used yesterday. And the fact that the MD thinks we’ve had a good season while still not technically safe ffs.
    Adios Rafa en gracias

    1
  • toon22

    Apr 19, 2019 at 7:01 AM

    Comment #109

    Slow motion car crash of a summer

    Check…

    1
  • Jib

    Apr 19, 2019 at 7:30 AM

    Comment #110
  • Jib

    Apr 19, 2019 at 7:34 AM

    Comment #111

    Jail
    The accounts are from June 2018 when the sale
    was very much alive.
    The clubs valuation has pretty much stayed steady
    at £250M plus MA’s original loan £111M which he’s
    always said a buyer would have to pay back so when
    journos’ said buyers would have to find about £360M
    they were right.

    0
  • magscar

    Apr 19, 2019 at 7:51 AM

    Comment #112

    Some interesting posts from night shift AND frog interacted rather than nonsensical retort -wow

    Some of information re accounts and club policy isn’t what we want to hear perhaps from what people have posted (haven’t had time to read Charnley’s statement or any off Blog analysis) but a lot depends on a readers disposition I guess as to how irritating it is.

    As to its effect on summer transfers I am thinking these are last year’s accounts and finances have moved on but no doubt Rafa can be given a more up to date summary by Charnley in negotiation re a budget.

    The important news we await is whether Rafa signs or not. Charnleys statement (as reported) doesn’t seem appealing in some respects from Rafa’s perspective but as I say he will have had private briefings from him which will be more up to date and may assuage some of his likely disappointments.

    At the end of the day this statement is basically for the press and public not for Rafa in person and I don’t see it as a deal breaker per se. It all depends on negotiations when they finally get down to serious discussion .

    So on balance I still lean more towards he will stay rather than he will go but can contain my impatience 🙂

    1
  • Jib

    Apr 19, 2019 at 7:56 AM

    Comment #113

    It looks like Lazaar has really connected with
    the Sheff Wed fans
    https://www.instagram.com/achraf_lazaar_official/?hl=en
    We’ll probably sell him to SW this summer.
    Short widow this year
    The window opens at midnight on Monday, July 1, 2019
    closes 17:00 on Thursday, August 8, 2019

    1
  • Jib

    Apr 19, 2019 at 7:59 AM

    Comment #114

    Short widow !?!?
    ha ha ha

    1
  • Jib

    Apr 19, 2019 at 8:02 AM

    Comment #115

    We could have some new signings in place for
    the Asia cup in China starting 17th July

    0
  • Jib

    Apr 19, 2019 at 8:11 AM

    Comment #116

    The bookies odds have us to win (marginally)
    Newcastle31/20
    Draw11/5
    Southampton21/10

    0
  • Tsunki

    Apr 19, 2019 at 8:15 AM

    Comment #117

    Ashley’s loans were designed to right the ship – stop the leaks by cutting off the flow of money to creditors in interest payments and meanwhile start the structuring of pointing the profitability to his first love, SD. He’s been getting it to wipe its own nose – get the income stream steady and assured then let the club core business pay its own way again, get his own money out now it’s done its job and it’s sailing straight.

    He’s not going to leave while its on course steady as she goes and all that. Charley’s policy statement tells you all that really. It has a fixed long term strategy, it’s aiming for a steady current and won’t be deflected off course by aiming for the potential rocks of competition. That’s it I’m out of seafaring analogies, I’m sunk 😀

    3
  • Lindisfarne

    Apr 19, 2019 at 8:17 AM

    Comment #118

    The clubs valuation already includes the owners ‘loan’

    2
  • Jib

    Apr 19, 2019 at 8:21 AM

    Comment #119

    “Tsunki
    The club core business pays its own way again , has a fixed long term strategy.”

    With Rafa running the football side it’s all good.

    1
  • Jib

    Apr 19, 2019 at 8:22 AM

    Comment #120

    Lindy don’t be foolish
    The club is certainly not valued at £139M

    0


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