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Newcastle Financials Look Reasonable – But Ashley Paying Peanuts For Worldwide Advertising



Newcastle’s had reasonably good financial results for the fiscal year 2018-2019, which were released yesterday.

The revenue was £176.4M, down only slightly from the previous year when we finished 10th in the league as contrasted to 13th last season.

The profit after tax was a good £34.7M, which is almost double that of the previous year, which was £18.6M.

Here’s some of what was published by the club as an overview of their fiscal results compared to the previous year.

Accounts overview

 	                2019	  2018	  Inc/(Dec)

Turnover	        £176.4m	 £178.5m  (£2.1m)
Operating profit* 	£53.5m	 £58.9m   (£5.4m)
Operating profit	£14.9m	 £17.6m	  (£2.7m)
Profit after tax	£34.7m	 £18.6m	   £16.1m
Wages/revenue	        54.9%	 52.4%	   2.5%
Loans/debt	        £111.0m	 £144.0m  (£33.0m)
Cash at year-end	£14.0m	 £33.8m	  (£19.8m)
Av. home attendance**	51,116	 51,992	  (876)


* before player trading and amortization
** Premier league

Here is the revenue split into three areas of income – broadcast (media), commercial, and matchday:

Notice our commercial revenue of £26.2M remains pitifully low and even embarrassing, and that’s one area of income that Amanda Staveley and company will be increasing rapidly in years to come.

And here is some of what the club reported about their financials:

“The Group is now receiving income from Frasers Group plc (formerly Sports Direct International plc) for stadium advertising at St. James’ Park.”

“Turnover (revenue) fell by 2%, from £178.5m to £176.4m.

“Media (broadcast) income fell £2.5m, being the net of a lower merit award based on league position, offset against one additional live TV game (19 vs 18) and an increase in international broadcasting income.

“Match income increased £0.9m (4%) from £23.9m to £24.8m as season ticket and Premier League matchday attendances averaged over 51,000 for the third successive season.

“Commercial income fell £0.5m (2%) from £26.7m to £26.2m, impacted by the success, in the prior year, of the three Ed Sheeran concerts. “

“The Group is now receiving income from Frasers Group plc (formerly Sports Direct International plc) for stadium advertising at St. James’ Park.”

“Operating expenses increased £3.3m (3%) from £119.6m to £122.9m, due almost entirely to an increase in wages and salaries, which accounted for £3.2m of the increase.

“At £96.8m the wages to turnover ratio of 54.9% remains under the target 60%, although slightly up from last year (£93.6m, ratio 52.4%)

“Excluding amounts released in respect of prior year onerous contract provisions, the 2019 year figures are £100.9m (2018: £103.4m) and 57.2% (2018: 57.9%).”

The amount the club received from Mike Ashley’s group (now Fraser Group) for one year of total advertising at St. James’ Park was £1.1M -which is a disgrace and nowhere near the commercial going rate.

But we suppose it’s better than previous years when he paid nothing to Newcastle, saying, as an excuse,  his interest-free loans helped pay for his company’s advertising.

So the loans were never free.

Mike Ashley has used Newcastle as a worldwide advertising board for his Sports Direct company (now Frasers Group).

It’s something the Premier League should be looking into for future owners, who don’t have the good of the club at heart.

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Comments welcome


141 comments so far

  • Gothmog's Pyjamas

    May 30, 2020 at 12:32 PM

    Comment #1

    SD pay us just over 1m for all the advertising.
    NUFC buy over 1m of merchandise from SD.

    so in effect, it was all for free to SD.

    also good to see Ashley didnt lose out by lowering his asking price down to 300m – he just took back 33m from the club to pay off some of his loan to offset this reduction in asking price.

    10
  • the Northumbrian

    May 30, 2020 at 12:36 PM

    Comment #2

    Seen an article in the financial times saying Saudi transfers 40 billion dollars to back wealth fund, can see another spending spree on the cards.

    1
  • WLtoon

    May 30, 2020 at 12:36 PM

    Comment #3

    For a club the size of ours, the fans that follow the club, i think the commercial income is pathetic.
    If we get a takeover i think that side of the business will increase 300%.
    Even i will buy a shirt or three, first time in 10 years

    5
  • Jail for Ashley

    May 30, 2020 at 12:37 PM

    Comment #4

    EGB,
    Not as sorry as I was, I’dhad garlic mushrooms the night before 😮

    1
  • the Northumbrian

    May 30, 2020 at 12:39 PM

    Comment #5

    Gothmog so that means he pays 1m we buy 1m of stock and he sells that in nufc’s shop and reaps the profit.

    0
  • cupiddstunt

    May 30, 2020 at 12:39 PM

    Comment #6

    Kevin,

    I just have to ask why are you taking umbrage with hibbit while at the same time you are “attacking” the blog with your passive aggressive name, and your passably subtle passive aggressive replies?

    I mention passive aggressive replies as I find remarks like “for the sake of tastebds” and “swallow my pride” as well as many other of your phrases as pretty clearly targeted elitist remarks intended to denigrate the recipient. I think I understand now why you ‘may have been’ as you claim subject to death threats.

    You say you had issues with someone on another blog that even reduced to death threats, and yet you come on this blog pushing your agenda by using a name that you knew from the onset and from past interactions would provoke a response.

    It appears that you want to force discussions about veganism but also play the innocent party card “I’m quite happy to talk about it if people ask but I will not be the instigator” of course you are the instigator as before you came on here you deliberately, knowingly chose to put vegan in you blog name knowing the response it would elicit.

    Instead of threatening long term posters like hibbit with going to the top of the blog to take issue with their posts why don’t you just take the simple route of removing “vegan” from you blog name, stop soliciting conversations on veganism and then all these issues will vanish?

    I for one actually applaud to a degree hibbit’s responses to your posts as the response of someone not taken in by your feigned innocence.

    22
  • cupiddstunt

    May 30, 2020 at 12:42 PM

    Comment #7

    Also Kevin before you try to cry innocent, I think you know full well that if someone puts things like ‘gay’ ’gender fluid” ‘halal’ and any other minority title in their blog name then it is guaranteed to promote discussion.

    So why did you do it?

    7
  • toon22

    May 30, 2020 at 12:44 PM

    Comment #8

    The parasite hasnt sold us yet

    10
  • IrishRob

    May 30, 2020 at 12:44 PM

    Comment #9

    Kevin, sorry but I stopped reading when you said red meat was a carcinogen. It seems you actually are a vegan.

    For those worried I assure you red meat isv100% not a carcinogen of ANY KIND. If it were we wouldnt be allowed to eat it. What is a carcinogen is BURNT red meat or cured meats containing Potassium nitrate which also get burned.

    10
  • hibbit

    May 30, 2020 at 12:45 PM

    Comment #10

    this takeover has been 2years plus in the planning,
    i’m sure every eventuality and every possibly scenario will have been played out by the buyers lawyers, every skeleton in every cupboard will have been found and discussed at length long before any documents were presented at the Premier Leagues door, Chris Mort and his team will have made sure of that,
    No way will this be turned down.

    17
  • Northumbrian

    May 30, 2020 at 12:47 PM

    Comment #11

    We need amerimag on to give us a pep talk

    5
  • Jail for Ashley

    May 30, 2020 at 12:48 PM

    Comment #12

    Right, let’s hound Kevin Vegan off the blog because people for what ever footin reason have a problem with what someone eats. Jeezus.H. Christos, what is the matter with people!!!

    16
  • IrishRob

    May 30, 2020 at 12:49 PM

    Comment #13

    People eat meat it’s very good for you, here’s peoples opinions on their experiences on meat ONLY diet.

    https://youtu.be/HLF29w6YqXs

    https://youtu.be/ivMoNhjnhqw

    0
  • IrishRob

    May 30, 2020 at 12:54 PM

    Comment #14

    Here is medical genius Dr Eric Berg, who is at the forefront of ketogenic diet and its understanding of what it does.

    Keto diet for beginners
    https://youtu.be/vMZfyEy_jpI

    Lower cholesterol with keto diet
    https://youtu.be/L2fKo_dbXS0

    2
  • IrishRob

    May 30, 2020 at 12:56 PM

    Comment #15

    Short video on 7 reasons why ketogenic diet is the best for long term health.

    https://youtu.be/_VqsQNLZDpE

    2
  • Kevin Vegan

    May 30, 2020 at 12:58 PM

    Comment #16

    Cupiddstunt,

    The name was a pun. I use it on footy manager. I didn’t think through the fact that it would cause issues as it was just a joke for me. Some people just see the word “vegan” and get triggered, and I should have anticipated that.

    You understand death threats for internet disagreements? If you think comments about “for the sake of your tastebuds” are controversial, sorry but I assume you have no idea. I didn’t come here yelling about how artificial insemination is rape and there is an animal holocaust going on in front of our eyes. I’ve answered questions when asked, and tried to move the topic on where possible.

    I did think about changing my username, a few people found it funny, but it seems to have triggered a lot of others. Might go for MagToonGeordie 😉

    But mate, are you really going to stand there and claim that I deserved death threats for a disagreement with somebody on the internet? You don’t even know what was said, yet you’ve decided that I deserved it? What have I said or done to make you think that?

    If you think that kind of behaviour is ever justified over a simple disagreement, it’s probably best we stay out of each other’s way. I have no desire to go there again, so if you’re one going to be one of those people, let me know right now and I will avoid you at all costs. People disagree. Threatening people’s lives because they hold a different opinion over something is not okay.

    5
  • Tackle from behind

    May 30, 2020 at 12:59 PM

    Comment #17

    I don’t want this Keto guy, sounds like he’ll cause trouble

    5
  • Tackle from behind

    May 30, 2020 at 1:01 PM

    Comment #18

    What a slavverer

    1
  • Northumbrian

    May 30, 2020 at 1:01 PM

    Comment #19

    Tackle,, is he muto’s brother?

    2
  • Anglo Saxon

    May 30, 2020 at 1:02 PM

    Comment #20

    Kev Might change my avatar To THE GAY ANGLO SAXON what do you think.

    3
  • Kevin Vegan

    May 30, 2020 at 1:04 PM

    Comment #21

    IrishRob,

    Youtube videos are great and all, but I’d take the advice of the IARC over youtube:

    http://www.iarc.fr/en/media-centre/pr/2015/pdfs/pr240_E.pdf

    “After thoroughly reviewing the accumulated scientific literature, a Working Group of 22 experts from 10 countries convened by the IARC Monographs Programme classified the consumption of red meat as probably carcinogenic to humans (Group 2A)”

    0
  • cupiddstunt

    May 30, 2020 at 1:04 PM

    Comment #22

    Sorry so many posts between my previous ones and this but hey ho

    To continue kevin.

    The fact that you post on this blog shows that you are using today’s technology which everyone knows full well makes use of increasingly hard to find and hard to extract rare earth minerals and metals, not to mention carbon fractions.

    The extraction/production of all these resources have shown unequivocally to have massively detrimental effects on not only the poor people that are forced by economics to work in these fields but the environment as a whole suffers.

    So while you may well feel somewhat smug in you veganism, cast a thought to all the humans that are suffering in order that you may wear synthetic fibres on your feet and body, the global pollution you are aiding and abetting with every inch you travel in a vehicle. Even cycling consumes carbon fractions in the tyres, saddles and cable housings not to mention the lubrications.

    You are a hypocrite of the highest order if you think you veganism elevates you the rest of us and your posts make it clear you do feel superior in your veganism.

    You put yourself up there to be shot at by your blog name so stop your whinging and crying when people take those shots.

    16
  • Tackle from behind

    May 30, 2020 at 1:04 PM

    Comment #23

    Anglo Identifies as Neutral Saxon

    2
  • Jail for Ashley

    May 30, 2020 at 1:05 PM

    Comment #24

    Kevin Keegan, Kevin Vegan, get it anyone?
    Where do we draw the line here in w

    10
  • Tackle from behind

    May 30, 2020 at 1:06 PM

    Comment #25

    No Northumbrian, it has been proven you will get ill if you eat Muto

    3
  • Anglo Saxon

    May 30, 2020 at 1:10 PM

    Comment #26

    TFB def has a ring to it excuse the pun.

    2
  • Kevin Vegan

    May 30, 2020 at 1:12 PM

    Comment #27

    Anglo,

    That would be RIP to the blog. All we’d need is someone asking about wheelchair access and another enquiring whether the blog was sustainable, organic and gluten free and the “fun” would never end.

    What baffles me is that I literally just put the name on there and people took issue with it. Am I not actually allowed to be vegan? Plenty of others directly post about their diets, what they had for dinner, where they get their favourite pies in town. I’m not here screaming “meat is murder” as I know this is not the time or place. I can (and do) discuss these things elsewhere online when I want. I actually currently help run a forum for debating veganism and it takes up too much of my life as it is. I came here for some down-time if anything, but I’m also well practiced in these discussions and armed to the teeth with sources, and people seem to want to “go there” so here we are.

    What do we do? Maybe we can all just agree not to mention it again and move on? I’d be fine with that, but it certainly won’t solve all the blog’s problems.

    Maybe if anyone wants to ask me about it, pick an old thread and we can chat at the end of the comments so nobody has to read it that doesn’t want to?

    1
  • Munster Mag

    May 30, 2020 at 1:13 PM

    Comment #28

    Ah shut up Jail and let people say what they want. As for lies, I’ve shown yours up in the past so you are in no position to throw stones here.

    4
  • Anglo Saxon

    May 30, 2020 at 1:18 PM

    Comment #29

    Kev carry on just don’t get into the vegan dispute anyone asking just say NO COMMENT.

    2
  • Munster Mag

    May 30, 2020 at 1:20 PM

    Comment #30

    Kevin I do find the vegan bit a little odd. It’s a bit attention seeking or something. I think I might change to Homosexual Hal or Catholics are Best Bradley? Not a biggie but however.

    6
  • Essex Geordie Bill

    May 30, 2020 at 1:21 PM

    Comment #31

    Kevin

    getting back to your question re. whether the team I went for, is it what I think will be Brucie’s choice or the one I want to see!

    It’s a bit of both, I’d rather see Dummett at LB than Rose but I think that’s what he will go with. Can’t see him picking AC but I’d prefer to see him over Joelinton and I think he’ll play Lazaro at RB but i reckon Manquillo would be the better choice.

    I see that you and others want Bentelab but he’s done nowt so far that convinces me that he’s a starter and I doubt if we’ll keep him new owners or not.

    2
  • dog

    May 30, 2020 at 1:21 PM

    Comment #32

    cupiddstunt #22,

    That must rate as the most preposterous, exaggerated, pompous and irrelevant response on the blog this year. Please tell us it’s a joke, a wind-up.

    4
  • Kevin Vegan

    May 30, 2020 at 1:22 PM

    Comment #33

    cupiddstunt

    Thisbis what is called a “tu quoque” fallacy. It is also a “nirvana fallacy”. Your argument is that veganism is imperfect and thefore is not valid at all (nirvana fallacy: things can be beneficial without being perfect) and that because it is imperfect, vegans are hypocrits, and their entire argument is invalid (tu quoque or “appeal to hypocrisy” fallacy).

    From my point of view, I could sit here and try to explain all the things I do to reduce my impact on the planet and other humans. I happily will list a few off if you want, but I really don’t want to pore over this again and again or add any more fuel to the accusations of thinking I am better than anyone.

    Can we please move on now?

    2
  • Northumbrian

    May 30, 2020 at 1:22 PM

    Comment #34

    I’ve changed my name and taken out the the I didn’t want anyone lambasting me for being a the.

    3
  • fairscup

    May 30, 2020 at 1:24 PM

    Comment #35

    PLEASE STFU about veganism.

    11
  • Anglo Saxon

    May 30, 2020 at 1:24 PM

    Comment #36

    Essex, was it not Bentelab who got 2 yellows in 2 game doesn’t bode well for me.

    1
  • Kevin Vegan

    May 30, 2020 at 1:24 PM

    Comment #37

    Anglo,

    That seems like a good idea to be fair.

    0
  • DaveD1000

    May 30, 2020 at 1:25 PM

    Comment #38

    Same crap as before

    1
  • Kevin Vegan

    May 30, 2020 at 1:25 PM

    Comment #39

    Munster, Fairscup

    No comment.

    2
  • Essex Geordie Bill

    May 30, 2020 at 1:26 PM

    Comment #40

    Jail

    I think you’d find that raw ginger is a more effective anti nausea remedy than garlic mushrooms and Vampires really hate it! 😉

    1


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