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Newcastle move into profit

Newcastle United moved into profit in 2017/18 following promotion to the Premier League. An operating loss of £90.9m became a profit of £17.6m: Financial results

Total revenues were up £92m to £179m. Broadcasting revenue went up by £79m to £126.4m. Commercial revenue more than doubled to £26.7m. Matchday income increased marginally at £23.9m.

The wage bill was slashed to £93.6m, although the size of the playing squad, coaching and support staff did not change. The reduction was due to lower bonuses and offloading unwanetd players. This gave a wages to turnover ratio of 52 per cent, well below the Uefa recommended level of 70 per cent. There are, of course, two ways of looking at that: prudent financing or failing to spend enough on players. Kieran Maguire of the PriceofFootball has pointed out that Newcastle had the lowest (negative) percentage wage change of any Premier League club in 2017/18, despite being in the Championship the previous season.

Profit on player sales of £3.6m was relatively low by Premier League standards, having been £42.3m in the previous year.

£144m was owed to Mike Ashley and companies under his control. Mike Ashley lent and was repaid £10m in 2017/18 to Newcastle United and since June 2018 club had repaid £33m to the Sports Director owner. The balance would be paid if the club is sold.

The accounts can be seen in full here: Accounts to June 2018

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