Skip to main content

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

Comments

Popular posts from this blog

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...

A poor financial record, but new hope at Everton

I recently saw an amusing video online in which a group of Everton fans were rebuked in jest for being hopeful.  Football fans in general tend to swing between excessive optimism and excessive pessimism, but for many it seems that moaning is in their bloodstream (Spurs fans probably take the trophy).  However, Everton fans have had plenty to moan about on and off the pitch.   Let’s hope that a new era is about to begin for this grand old club. Everton’s 2023/24 financial results covered a fairly momentous season, when they ended up 15th in the Premier League, though they would finished three places higher if they had not received an 8-point deduction for breaching the Premier League’s Profitability and Sustainability Regulations (PSR). It was a worrying time for Everton fans, as the club faced a “perfect storm” of issues, including large financial losses, an ever increasing debt burden, a challenging stadium build and the tortuous sale of the club. There were eve...