Newcastle United Are Only Heading One Way
Whether it is two buses coming together or great minds think alike, we sometimes get two or more articles on similar subjects arriving at the same time.
On this occasion we published [intlink id=”35440″ type=”post”]Newcastle United Financial Accounts – Where Has The Money Gone Under Mike Ashley?[/intlink] yesterday which brought a massive response from visitors to the site.
Below you’ll find an article by Alex which is in the same ballpark but uses similar information in a slightly different way, if you haven’t seen either of them then enjoy them both…
We all hear a lot from Newcastle United of how our club is unable to compete financially and how money needs to be generated by the club in order to spend. Be it JFK’s ‘programme notes’, Pardew’s post-match interviews, or the information passed through the media.
Well I decided to have a good look at the differences between the start of Ashley’s reign up to the last reports published and to be honest the figures are quite alarming. Now I’m no financial expert and maybe there are reasons for each of these figures but I just can’t see it. I think one of the best ways to compare our figures are to compare to other Premier League teams.
First I went back to 2007 when Ashley arrived. A time when we had a large amount of debt. This was the time when Ashley allegedly failed to take due diligence of the club and this is where I think the bending of the truth started.
Firstly, the massive debt we were in wasn’t totally made up of big transfer fees and huge wages, that didn’t help for sure, but there was also a large loan from the stadium extension that was included in there. A stadium Ashley now owns, surely at the time he saw the books and knew that the stadium wasn’t just built out of Sir John Hall’s pocket. Ashley must of had a pretty good idea of the club’s finances, everyone knows roughly what players earn, everyone knew Newcastle paid over the odds, for me it was obvious not all was rosy and I’m far from being a billionaire businessman with advisors all around me.
So back to the figures, in 2006/07 we had a turnover of £87m, Spurs were at £103m, Everton £51m and the mackems £26m.
Going forward to 2011/12, NUFC turnover is £93m, Spurs £163m and Everton £80.5m, while the SMB’s has risen to £78m.
When I saw those results I thought it quite strange that in the time since Ashley has taken over our turnover has risen by just £6m, I looked at not only the teams above but also many other Prem teams and the story is the same, nearly every other team’s turnover has gone up by at least £30m in that period.
That obviously led me to look at our commercial turnover which stood at £25.7m in 2006/07. This figure stood at £13.8m in 2012.
Again nearly every Prem team has made significant improvement on commercial turnover, we have halved.
With all the news about S***** D***** effectively running the club shop and online store, I think it is something we need to seriously look at, for commercial turnover to half in that time when all around us teams are maximising that revenue seems ludicrous.
As JFK said, we can’t compete with the big teams when the likes of Spurs commercial turnover is £53m compared to our £13.8m…..the problem is in 2006/07 we were higher.
The club is going one way, backwards and fast.
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