Newcastle United – Riches Pour In From Around The World

Thursday 28th June 2012 by

Massive amounts of money from every corner of the globe will be flooding into Newcastle United, with Mike Ashley not having to lift a finger.

As most of you will be aware, the domestic rights to show the Premier League on TV for 2013-2016 have just been agreed, with SKY and BT agreeing to pay over £3Billion for the three year deal.

However, on top of that the deals to show English Premier League football around the world are due to be announced in the coming months.

In the current deal (2010-13) the Premier League clubs have made £1.437billion over the three years.

Amongst the various deals which made up that near one and a half billion were £190m for rights in Singapore, £225m from the Middle East and £146m in Hong Kong. While £111m came in from Scandinavia, the remainder coming from numerous smaller agreements, a total of 81 separate deals.

It is virtually certain that there will be decent overall growth from the £1.437bn overseas total for 2013-16, and the Premier League expects to know that total by the end of October 2012; it continues to negotiate contracts around the world.

As an illustration of the amounts involved club by club, even if there is no rise in the amount the overseas deals bring in (highly unlikely!) then Manchester City’s income (via the TV deals) for winning the league would increase from £60.6m to around £90m if they won the league again in 2013-14 when the new deals kick in.

Heading nineteen places down the league, Wolves ‘earned’ £39m by finishing bottom this season and again, if overseas money didn’t increase, that would become £53.3m for the bottom club in 2013-14.

If overseas income jumps 50%, then the Premier League winners in 2013-14 would pick up £99.3m, or if it jumps by the same 70% that domestic income has jumped, then it goes to £103m.

If it doubles, the Premier League winners of 2013-14 can expect around £109m from finishing top while the bottom club might expect some £72m, or £12m more than the highest club in 2011-12.

In the first overseas deals already signed for 2013-16, Scandinavia will pay the League around double what they earned last time, helped also by the fact they have dealt direct with the broadcasters rather than using a middle man as previously.

The bottom line is that for clubs like Newcastle United and of course Mike Ashley, the riches will continue to flood in from every part of the world, the big question then is what the clubs and in our particular case, Mike Ashley, does with the money.

There is clearly the potential for the owner to take the instant benefit as cash, or take the long-term view of making Newcastle United an even more attractive future buy. (Read more on the excellent www.sportingintelligence.com )

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  • Gary

    Grow up Mark and stop misleading fans.  You have a hidden agenda with your flawed idea that the Fans could buy the club.  There is more to running a club than simply spending big and then paying prima donas ridiculous wages.  Ask Rangers who are in a dire straits because they owed money to the inland revenue etc.  
    Football is a business and Mike Ashley is entitled to take money out of the club if appropriate.  
    Regardless of whether you like MA or not our club would in dire straits if Mr Shepherd had continued to spend money that did not exist.
    We finished 5th last season or have you forgot

    • Paul Soulsby

      Amen to that, though the ridiculous Shep was just a beard for old man Hall, remember that pompous arse ?, last seen counting a huge pile of Mikes wedge. What was it the Thatcherite twat said, You don’t come into football to make money ?, Thatcherite millionaires do bugger all out of altruism, he always wanted to make some money, he just never realised he could make so much.

  • GeordieLegend9

    To get an indication of where St James Holdings Ltd and Newcastle united Ltd is going, do a company search. Accounts filed in March 2012 show that NOT A SINGLE penny of the debt/liabilities has decreased. It has infact increased in both companies. However there is an increase of £9m in the bank at the time of the accounts being filed. Considering we are still on parachute payments from our relegation (3 seasons remember) in addition to the monies from promotion and huge player sales not to mention the large TV revenue, gate receipts etc from what is a significantly reduced wage bill. Isnt it time you Pro Ashleys start pondering where the money is going to yet ? I expect we will hear “wait until this time next year” to see what debt has been cleared. Ba will not be sold, if he is it will be against MAs wishes as the clause is significantly below his market value. The prime sheep for the slaughter are Simpson, Tiote and Best. Tiote is good but not irreplaceable in his position. Cabaye is our playmaker and Ben Arfa is a ball player, they would be considered too risky to sell and may disjoint the harmony of the teams fluidity. Cisse is a no brainer, he wins you football matches. The club is doing well but for the sake of business not football ambition. One is the fortunate side effect of the other. 

  • Rhealy82

    “Tiote is not irreplaceable”?? Have you not seen this guy play? He is at the centre of almost everything Newcastle do and losing him would change who whole dynamic of the team. Big clubs like Manchester United and Chelsea dont come sniffing around mediocre players (usually). To replace Tiote with a player of his calibre would cost upwards of £20million and we all know MA doesnt work that way. So no, Tiote IS irreplacable

  • Flyingmags

    After 50 odd years I’m happy the way the club is being run. Ashley paid the debt out of his own money, he owns the club and is entitled to make money from it. At least we know that he has money, not like FS who spent money we didn’t have. If the club’s debts appear not to have changed, remember that – and after the flak I’ve given him I’m eating humble pie now – we would probably be in the same situation as Rangers had Ashley not stayed when he was getting pelters.

  • GFH

    I agree totally Flying Mags ! I also go back 50 odd years of supporting the club and I feel better about our management practices at club level than for many years , if ever. I loved the first Keegan years and Sir Bobbys regime (mostly) but I feel more confident that we will progress to win things this time around than I have for along time.
    It seems that some fans want MA to pay the debts , buy every available good player BUT keep away from the ground on match days.

  • Dave E

    We in Geordieland were as much incensed as we were bewildered by the unceremonious – and ostensibly unfair – removal of Chris Hughton, but who amongst us now doesn’t understand, nor disagree with, Ashley’s explanation at the time that replacing Hughton with Pardew was an unfortunate but necessary step that had to be made in order for NUFC to be taken to the next level. I for one am not a big fan of Ashley, but you can’t really blame him for completely disregarding the voice of the populace and do what he thinks is best (for himself, of course, but because his successes are also NUFC’s successes, for the team and its supporters too)

  • Dale Down Under

    I believe it is a little early to for us all to be sucking Ashleys dick and eating humble pie. At present yeah, I take my hat off to the former fat man as to what he has done on the financial side etc, however I will wait until the transfer window is shut as one swallow does not make a summer. If we do not sell any of our ‘blue chip’ players (all rights reserved to Sir Bobby Robson), then yeah, I will believe things have changed for the longish term betterment of our fine club.