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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.

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Comments welcome.


147 comments so far

  • Jib

    Apr 19, 2019 at 8:26 AM

    Comment #121

    Our playing squad alone is valued at about £180M

    0
  • Tsunki

    Apr 19, 2019 at 8:28 AM

    Comment #122

    Aye jib IF Rafa stays. He might not like the “no competition” policy though, what do you think?

    1
  • Lindisfarne

    Apr 19, 2019 at 8:30 AM

    Comment #123

    IMO the lastest accounts show that the club has recovered from the last relegation and unprecedented spending of that season. Whilst the club is potentially seeking congratulations for not meeting the so called demands of delusional fans to over spend, they continue to act like a kid threatening to take their ball home. The continuos use of the ‘Leeds’ analogy to justify under investment in the club as a whole is not justifiable.

    2
  • lochinvar

    Apr 19, 2019 at 8:41 AM

    Comment #124

    In the photo why does Charnley always seem to have a mega scarf knitted by his Nan around his neck ?
    Is it somewhere to hide deep in the wool when faced with talking to Ashley ?
    Think he should donate it to one of our needy away fans who don’t even have a shirt on their back to keep warm. Charity begins at home or in this case away.

    2
  • Lindisfarne

    Apr 19, 2019 at 8:41 AM

    Comment #125

    The valuation, as I understand, is based on the figure MA bought the club plus the ‘loan’, beiing around £250-270m with anything above that being profit and subject to any increase in the clubs assets. As we know the owner has managed to reduce the assets of the club and no potential buyer has so far matched the asking price of £300m. In this circumstance the valuation of players does not really effect the asking price, as the squad value has been highly inflated by the TV revenue.

    2
  • Lindisfarne

    Apr 19, 2019 at 8:42 AM

    Comment #126

    sorry, must go

    0
  • Jib

    Apr 19, 2019 at 8:44 AM

    Comment #127

    Lindy
    In this circumstance the valuation of players does not really effect
    the asking price, as the squad value has been highly inflated by the
    TV revenue.
    EH !!!!!!
    Please tell me your a tax inspector.
    I’m going to change my tax district to yours !!!

    0
  • Munster Mag

    Apr 19, 2019 at 8:45 AM

    Comment #128

    It looks like the speed of transfers could be the key issue. As I tried to explain before to jail and Co the top clubs won’t want rafa (some people said spurs wud consider ousting potecchino for him. Was never going to happen) and the medium clubs like wolves and Leicester are OK. I wud fear for a rich Leeds but their mad manager has done a great job. Rafa wants to stay in England so huge jobs in China won’t interest him. So if he gets 50 mill plus sales it should allow him to get 2-3 decent players although it’s not a great budget obviously. He won’t get the new training centre it seems, so it will hinge on transfer speed strategy and autonomy. Rafa wud prefer to stay and his English options are probably not great. Let’s get this done Fats.

    0
  • Tsunki

    Apr 19, 2019 at 8:46 AM

    Comment #129

    One of the things Rafa will probably be wondering is “will I live long enough to see this project achieve anything sports-wise?” I think club planning always has a contingency for a new manager who will toe the line and a decent pr strategy to push the idea out.

    1
  • Tsunki

    Apr 19, 2019 at 8:53 AM

    Comment #130

    Tighten your drum Munster it’s sounding a bit hollow now. And I think it’s only you who suggested Pochettino would be chucked to get Rafa in, while debunking your own theory to make it work. I still maintain that if some (not all) “top” club falls on tough times they’d have Rafa. His CV and what he’s done here are pretty good recommendations. Just think what he’d do with a budget, proper training facilities and a competitive ethos. That’s what top clubs would be thinking. Leeds? You’re a joke.

    7
  • Tsunki

    Apr 19, 2019 at 8:54 AM

    Comment #131

    Munsters pro-rafa-anti-rafa campaign of endless deflection and sideswipes.

    Get Rafa hired Ashley! Then stick him in the broom cupboard with a portable telly! Ha ha.

    6
  • Jib

    Apr 19, 2019 at 8:55 AM

    Comment #132

    Tsunki
    Sorry Lindisfarne’s grasp of things financial
    distracted me.
    You asked me

    Aye jib IF Rafa stays. He might not like the “no competition” policy though, what do you think?

    You clearly only read what you want to
    Charnley said

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

    0
  • The next Mike Williamson

    Apr 19, 2019 at 8:55 AM

    Comment #133

    Jail there were a lot of reports in the summer that Ashley had reduced the asking price by 50m. Nothing concrete though.

    0
  • Bambams

    Apr 19, 2019 at 8:58 AM

    Comment #134

    It’s strange when the club announces they want to look to bring in ‘Younger players who can improve ‘ yet they wont sanction the money to ‘improve the training facilities ‘ for these younger players.

    I love the part where Charnley stated ‘I have never known any player turn down a move to us because of the training ground ‘ , he had to get that one in.

    Weeks ago he had a big fall out with Rafa and it ain’t going to get any better.

    3
  • Munster Mag

    Apr 19, 2019 at 9:01 AM

    Comment #135

    Incorrect again tsunki. And you would have said same re wolves that you said re Leeds. Think bigger. I think the main concern is a growing European club in one of the established leagues or maybe a galatasaray. Huge fan base that rafa likes, euro football, if they have big bucks. That’s where the main rafa threat lies in my books. I think Jay photo said similarly recently re rafa having somewhat restricted options given that he wants to be near family in UK.

    0
  • Munster Mag

    Apr 19, 2019 at 9:04 AM

    Comment #136

    Yes tsunki, my many assertions that rafa should be signed for 10 years and then become a DOF and choose his successor is a real ‘stick him in the broom cupboard’ statement. Well done. I’m just trying to look at rafa’s options in terms of the negotiation. Your friend Jail claimed that rafa shudnt negotiate, which is a bit naive in the real world.

    1
  • Budge123

    Apr 19, 2019 at 9:08 AM

    Comment #137

    So according to the press Rafa is offered 50 m, 100m or ‘living within our means’
    Let’s pretend that 100m is real and not PR planted.
    The key point is to most 100m means 100m of transfer fees to Cashly it will also need to cover agent feels and wages for length of contract.
    Thus a 20m player is probably a 35m player all in.
    Slim pickings ahead.
    Rafa to go and blamed as unrealistic by our beloved ownership is my likely outcome.
    Followed by another relegation

    3
  • Munster Mag

    Apr 19, 2019 at 9:09 AM

    Comment #138

    Another threat would be rafa taking a break altogether and telling Fats to stick it. Hasn’t been mentioned here before but even allowing for his addiction to football, a real threat. Joe Schmidt doing same at Ireland. Top cláss manager. Everyone thought he wud run to the all blacks as he is a kiwi. But no, he is resigning and taking a long break. Imagine the pain of seeing rafa on sky with Jamie C, whilst we have a pardew type managing us. Barf.

    0
  • Ron Knee

    Apr 19, 2019 at 9:09 AM

    Comment #139

    And yet a Grauniad football hack said recently that Rafa would do a great job at Manure or Everton.

    1
  • Jib

    Apr 19, 2019 at 9:14 AM

    Comment #140

    I was told recently by someone who knows
    that Guardiola’s assistant Mikel Arteta was being
    considered at Goodison but then Marco Silva
    found his mojo

    0
  • Munster Mag

    Apr 19, 2019 at 9:24 AM

    Comment #143

    Great stuff jib. Massive match against England’s richest. Might be a bridge too far but I’d never write munster off. Our fans are easily the best in Europe and our men will bleed into the soil because of our pride and history. Tear into them Munster!

    0
  • Jail for Ashley

    Apr 19, 2019 at 9:26 AM

    Comment #144

    That’s going to please Rafa, being publicly told that the training facilities are fine, no mention of the skills of the manager who negated that disadvantage and putting out a story that he’s got 50M to spend when really it’s in vouchers to be spent where the ow or sees fit. They might as well have just thanked him for his services there and then.
    Another good season, let’s see how the next one goes.

    4
  • Munster Mag

    Apr 19, 2019 at 9:28 AM

    Comment #145

    Ron rafa wud do a great job anywhere but Everton and man u are not relevant in reality. Leicester, celtic, a rich Leeds, an ambitious Italian club, the likes of galatasaray. These are the threats. But his English options are limited and the top clubs won’t go for him. That grates with some people here but it’s the way it is. Maybe if klopp leaves but that’s not going to happen.

    0
  • lochinvar

    Apr 19, 2019 at 9:32 AM

    Comment #146

    The Mail reckons Rafa is getting £50m for transfers while The Mirror states £100m.
    Elsewhere Charnley is quoted as saying that with £18.6m profit the club can expect to live with its means.
    No doubt contributions towards any transfer budget will come from players sales but that’s speculative. Who goes ? Joselu, Murphy, Shelvey, Clark ( who’s a solid player if fit but might not want to spend his career in the reserves ) a keeper ? It’s only a Bank Holiday weekend so fuel prices are jacked up and journos start writing drivel in a vain attempt to sell their rags. Should be a good lively atmosphere on Saturday as a few bevvies during the day will lubricate the vocal chords of many. HWTL

    1
  • lochinvar

    Apr 19, 2019 at 9:43 AM

    Comment #147

    It’s blindingly obvious that the next generation of younger players expect to be pampered as if they had already made the grade at City or Barcelona.
    Training grounds need to be state of the art and Benton is clearly tired at the edges if not well past its sell by date. I’ve said before that a more enlightened approach is needed. Maybe sell Benton to the Universities in town and look to build a purpose built Training facility at Bullocksteads or elsewhere – missed the chance to do something at the Great North Park site which could have been well placed. Charnley is not a man of vision and that’s what’s needed. Brighton’s facility looks excellent, although it may become the best in the Championship if they’re not careful.

    1


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