When it comes to a Newcastle United valuation in terms of what the club is worth – just like everything else in life, it is worth what somebody is willing to pay at any particular time.

However, with not many top football clubs usually sold in any particular season, various experts/organisations regularly attempt to take a financial snapshot of club valuations.

Swansea City have finally released their club accounts for the 2015/16 season, the last of the 20 to do so.

Following their release, Kieran Maguire, who lectures on football finance at Liverpool University, has carried a same calculation on 20 Premier League clubs based on their accounts for that (2015/16) season and has come up with a combined worth of £11.65bn.

That is an average of £517m per club.

In this newly released list, Newcastle United are valued at£568.2m based on those 2015/16 accounts an Kieran Maguire’s financial template.

Premier League club valuations based on 2015/16 accounts by Kieran Maguire (Price of Football):

£2.297bn: Manchester City

£2.232bn: Manchester United

£1.265bn: Arsenal

£1.151bn: Tottenham

£1.050bn: Chelsea

£589.3m: Liverpool

£568.2m Newcastle

£376.4m: Leicester City

£248.3m Southampton

£249.5m: Norwich

£229.5m: Stoke City

£211.1m: Everton

£169.7m: Crystal Palace

£166.8m: Bournemouth

£161.8m: West Brom

£161.7m: Aston Villa

£148m: West Ham

£131.7m: Sunderland

£125m: Watford

£113.5m: Swansea City

There is no detailed explanation of how he came up with his valuations but he does mention that Manchester City take top spot from Manchester United due to no debt and Manchester United’s transfer losses. So presumably the existence of debt, particularly if owed to banks etc, plus performance in the transfer market, play a big part.

Of course, for three clubs in this list, the awkward event of relegation will have much changed any valuations based on accounts for this (2016/17) season, when Kieran Maguire updates his table/valuations above.

Unlike Villa and Norwich though, Newcastle United are now back to being valued as a Premier League club and if Rafa Benitez can establish NUFC once again in the top tier, then with yet another massive increase in TV money forecast in the next deals (due to be negotiated in the next 12 months and then come into force with the 2019/20 season) the true valuation of clubs is certain to go ever higher.



  • Alex

    After reading this, Mike’s right hand is on overtime.

    • NUFCLX

      Class

    • MadMag83

      Do Sports Direct pay overtime?

    • Andy Mac

      It’ll be all over Penfold 🤔

      • Alex

        I think I’m going to throw up, now.

        • Andy Mac

          🤣🤣🤣🤣🤣🤣🤣🤣

  • Leazes Ender

    Remarkable indeed as United don’t charge for advertising and give a large chunk of merchandising to Sp**** D*****…… add to that an embargo on Wong* goods and Ashley in general….. we could be an attractive proposition for an ambitious buyer.

    …. as a stopgap scenario of course until the law changes on ownership of football clubs as community assets and drives these sh*tty owners out for good.

    • Oooh bobbi fleckman

      Demonstrating a clear understanding as ever MMM, well done

      • Leazes Ender

        I post as me chum….

        MMM is your alter ego…. you used to post as someone called Xenobia another right wing trans-gender persona and your own alter-ego then was someone called ‘PaddywhereamI’… bit racist…. you have changed your two names but you still troll me with both

        You are psychotic bipolar troll now go play with your trainset in your imaginary world where you are princess of all of the fairies.

        What was the Cockney phrase you used to use….’capiche’

        • Oooh bobbi fleckman

          Wrong on all counts, no change there.

          • Leazes Ender

            You obviously do have multi accoiunts…. there cant be two people as thick as you.

          • Oooh bobbi fleckman

            I’m afraid I actually don’t [have multi accounts]

            A very strange use of sic erat scriptum BTW.

          • Leazes Ender

            I’m saying you post with opposites…. thus polar…..you posted under the name of Xenobia…. don’t lie…. and her opposite her husband, and you are massively overweight, wheelchair bound, and I think…. you now post as……

            MMM Wor Mongo, The nut Job, and Wor Lass to name four…

            Reference to your posting name in the second and third person…. is interesting but it doesn’t make a personality.

            And lastly you one gave me this face as an insult….which I have used for years now…. I put some shades on him and turned him green…. remember…. I do its a memorably striking avatar.

          • Oooh bobbi fleckman

            No, ‘fraid not. I’ve not posted as any of those. I did have previous log-ins but only had to create new ones as there was some censorship going on. I’m not interested enough to create an alter-ego, very few people seem to agree with me on here in any case.

            As for wheelchair bound, thankfully not and my heart goes out to anyone who is. Overweight, well, a little 14 1/4 stone – 6ft 2 if I can get 3/4 stone off, I’ll be down to my playing weight.

            My posting name is just a take on the film Spinal tap.

            I can’t say I gave you your face, I thought it was one of your photo-shop fun times.

            Sorry to water your chips. If you are not MMM or Nut Job, I accept your word, it just seemed uncanny. Even with your explanation, the sic erat scriptum does not make sense.

  • Lord

    A few things on the list look suspect. Even allowing for those figure being based on 15/16 season, we are surely further behind Liverpool than that and Everton seem way too far down the list. Tottenham ahead of Chelsea based on one season of higher league placing?

    Having said that even if the figures are off, demonstrates we are (were?) a valuable club capable of generating good commercial revenue outside of match day. What a disgrace it was that we were relegated and scrapping around for years before that.

    • Oooh bobbi fleckman

      We’re closer to Liverpool than is appears logical because the figures will not take into account the intangible asset of their worldwide reputation. Our position is strong because we have control over costs, very low external gearing.

      The valuation method would need to be looked at but Everton made a £24m loss in 2016 and you have to bear in mind, Goodison Park needs redeveloped and this would cost a minimum of £200m but estimates are far higher.

  • It’s really a simple set of sums if you know where to look. Clubs are valued by what they call “prospective P/E ratio”. Supposed football finance experts, Deloittes, suggest that for a mid table side, a club is worth about 14 times projected profits in the current economic environment, a top side up to 20 times that value.

    A Premier League club should average about £110m in TV income. Match day receipts for a 52,000 stadium should be around 30m and with a new shirt sponsor, the rate should have gone up from Wonga’s. Global TV exposure means that other commercial revenues should be a lot higher than before.

    Take off wages and other costs, perhaps some profits on transfer trading which Ashley has had in the past and you come up with a figure of around £700m, then subtract Ashley’s loan to himself.

    If in the top 4, you are looking at over £1bn, plus a multiple of Champions League revenue.

    • Andy Mac

      Hi Rex, still doing the maths I see ?

      However the “value” of a club, as we all know, is how much someone is willing to pay for it. No one in their right mind would shell out £500m for NUFC especially if they had to pay off Fatman’s “debt” as well ?

      BTW any financial boffins know how much its risen to now after another season the the EFL ? Funny how we seem to be the ones who have to pay for Fatman’s blunders year on year ?

      • Oooh bobbi fleckman

        I’m pretty sure £500m is about right for the club. MA paid £130m (far too much) to Hall et al. He then had to put in £129m to resolve the liabilities and the business then was losing money to the tune of £30m a year. So, he paid out £259m and turned it around to making profits (perhaps not in 2017) on an regular ongoing basis. This is a football club that will not need stadium redevelopment in the foreseeable future, a fairly inelastic demand curve, I’d say any buyer would need over £500m to take it off his hands.

        The value in the EFL was far lower, had we have failed to go up, the value would have dropped to almost unsaleable.

        There was an interesting article on Sunderland’s financial position (yesterday in tf) which showed Sunderland in a worse position than we were at the end of the FFS / Hall period with added relegation to consider. I bet Ellis Short is looking at the valuation in this piece and hoping someone will pay 1/2 that figure.

        • Andy Mac

          “I’m pretty sure £500m is about right for the club. MA paid £130m (far
          too much) to Hall et al. He then had to put in £129m to resolve the
          liabilities and the business then was losing money to the tune of £30m a
          year”

          Now I know you’re talking bolux ! .🙄

          • Oooh bobbi fleckman

            On what basis?

        • HarryHype59

          He will add another 50m to the debt to himself to cover the cost of yet another relegation under his ownership. But who cares? We have won the second tier and there is now a tin pot trophy in the boardroom, all is well.

          • Oooh bobbi fleckman

            He will have covered the losses this year, no doubt about that, that’s even been noted in the accounts. The fact the main shareholder has put the debt in is generally seen as a good thing.

            It’s all relative, a potential owner will adjust his offer accordingly.

      • Indeed.

        The club has become more saleable with the global TV deals. The big money is now coming from China and we should see a Chinese betting company on the shirts next season. There are still some billionaires scattered around Russia and the Middle East. no doubt there are some Americans who still think they can boost franchise income.

        As for the debt to Ashley from Ashley, some good points above but interest free does not include a service cost. We don’t know for sure how much it stands at but between the £129m and and extra £33m so a maximum of£162m. We don’t know what the instalments are for some of the sales.

        Just picking up on another point above, it is the “prospective” p/e ratio that a club should be valued by. Whilst income before player trading will drop, maybe to around £80m this season, with the current market for TV rights, coverage and commercial income should mean that even Charnley can get revenue to about £200m.

        • Oooh bobbi fleckman

          I’m not sure I’m reading this correctly, you think we can get to £200m revenue in this year, 2017? I think that is way off in that the parachute money is £40m compared to the £73m we received in 2016, even with us being a regular star on the Championship live games, I can’t see our media income exceeding £45m?

          If you mean 2018, I still think that’s ambitious. In 2016 (last accounts) income was £126m with media income of £73m – if we finish 10th in 2018, then media income would be £118m (+ adjustment for actual TV appearances) £45m more than 2016 so all things being equal revenue would be £170m. The sponsorship deal should be better than Wonga’s £6m a year (7th in the country between Spurs and West Ham) but I can’t see it exceeding the £16m Spurs get – say £10m? That takes us to £174m. Other commercial income is never that high but maybe an extra £5m could be squeezed in. Everything else is outsourced so that £3.2m we got in 2016 goes straight to profit. Even if the new shirt is a thing of beauty, we only get the profit into the P&L, £1m extra? I can get us to £180m revenue.

          We are more saleable in the EPL, we’re also one of the most attractive clubs to plough money into as we’ve been profitable and a tight ship. The problem now is that the keenest investors have already ploughed money into clubs, others have had their fingers burnt.

    • Leazes Ender

      Yes you are right but I don’t think that you have to subtract the ‘loan’ as its a part of the value of the club…. and only put in place as a tax dodge.

      • Oooh bobbi fleckman

        For once, Leazesl Ender is right (not about the tax dodge), if you are using an earnings method of valuation, you would not take off the debt as servicing the debt is considered part of the cost of creating the income. In our case, that is a bit of misnomer as Mike Ashley is lending the money interest-free but it’s a fair argument to say this is in lieu of forgone income for advertising SD. Now, in 2016, the accounts showed a PBIT of around £4m (I’m not exactly sure but far less than the £20 odd million in 2015) and this was not under the new EPL tv contract. What I suspect the ‘expert’ has done is to transpose the future earnings with the current proven cost base (with a reasonable mulitiplier) to value the clubs.

        • Leazes Ender

          Could you do a version in English…. all you are doing is trying to bamboozle people with bu**sh*t…

          You do not get a single reply to one of these bits of abbreviated inconspicuous detailed conditions in an agreement or contract….do you…. its nonsense!

          Isn’t this just a justification for the crime…. you are in effect condoning the loopholes in the law which allow businessmen to escape taxation and perpetrate the crime of TAX EVASION…

          Just because its legal doesn’t make it right…. there are armies of solicitors and parliamentary lobbyists (solicitors) trying to close and open up loopholes in the law to allow EVASION by business and individuals.

          reciting the loophole doesn’t make it right…. unless you are an unthinking moraless pen pushing accountant!

          • Oooh bobbi fleckman

            No bamboozling intended but in simple terms, when it comes to company valuation, there are many ways to skin a cat. RexN is assuming the ‘expert’ has used the earnings method which is basically to say the company generate x amount of profit, therefore, the company is worth y times that profit. You were correct to say he should ignore debt as under this method, it’s assumed that the debt is manageable and it’s cost (interest) is already accounted for within the profit figure.

            You are barking up the wrong tree here if you are referring to NUFC borrowing from MA. He’s not charging interest, would you rather that he did? NUFC are not evading tax as they have less cost and more profit, therefore, more tax to pay. MA is forgoing the income so yes, any interest he earns would be taxable but it’s not hurting the public purse.

            I assumed I don’t get a reply into the analysis of the figures is because I present it very well and clear. What I’ve done is to present the situation to some folk who may not fully understand and they’ve read it, digested and and thought to themselves, thanks Bobbi, I understand that now.

  • Rich Lawson

    Any chance of Ashley selling up and going home has probably been lost with the financial goody bag that comes with being back in the prem’,there had to be a downside or we wouldn’t be NUFC !

    • Oooh bobbi fleckman

      I’m sure he’d gladly do so if he’s offered the money. You may just see something in the sponsorship deal.

      • Danimal

        As you’ve said. Hope you’re right.

  • joe mac

    Did he not say he was staying til we won a trophy?……not like him to go back on his word!…is it?

    • Leazes Ender

      He seems reluctant to turn up at SJP these days…. he should go.

      The law on ownership should be changed to deny any individual more than 5% of a local amenity such as a football club….. that would give the Club a board…. instead of the will of an individual. A little more accountability…

      • Oooh bobbi fleckman

        It would also kill professional football in the UK.