Newcastle Named In Tax Shame Report
The report by the Independent On Sunday reveals that five Premier League clubs including Newcastle made a combined profit of £70m according to the latest financial figures available, yet paid no tax.
In the case of NUFC the figures relate to the last available accounts which are for the financial year 2010/11 and the club made a profit of £32.6m thanks in the main to the sale of Andy Carroll. However, due to being able to carry forward losses, Newcastle have paid no corporation tax for two years.
The report doesn’t claim there is anything illegal with how clubs have managed to pay so little corporation tax, or in these cases none at all, but politicians and suchlike are querying why with so much money flowing into the Premier League there isn’t a better return for the government/public.
Despite the low levels of corporation tax paid, there is an acknowledgement of large amounts of revenue generated by PAYE and other taxes.
The club that handed over most corporation tax was West Brom who paid £1.8m on £18.9m profits, suggesting that it is possible for a well run middle ranking Premier League club to make a profit, even before taking into account the vastly increased TV revenue which will start to flow from next season.
Of more interest to Newcastle fans is what funds are made available for essential strengthening of the squad in the next transfer window.
If you take those 2010/11 financial figures as your starting point then while Papiss Cisse made a dent in that £30m+ profit, the player trading since then is unlikely to see Newcastle having made any substantial outlay. While players such as Cabaye, Ba and Santon came in, big earners such as Nolan, Smith, Barton and Enrique have all departed.
Plus of course our unexpected great season last time around will have meant an undoubted increase in revenue compared to what was forecasted.
With those massive new TV deals coming into effect from next season, Newcastle United have to make sure they are in the very best position to take advantage, bringing in a few more quality players could be essential if we are going to really put any mention of the ‘R’ word to the back of our minds.
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