Newcastle United Profits (and Losses) Under Mike Ashley And Beforehand
Following on from the recent articles with regard to the turnover and commercial revenue at Newcastle United, I thought I would also have a look at the pre-Ashley era pre-tax profits/losses.
Now don’t get me wrong, I wasn’t a big Shepherd fan and I’m not here to defend his time at the club, we all know money was wasted on certain players and big wages but what I wanted to try and get an idea of is if that approach was a lot worse than the opposite approach that we are currently getting. The figures again were quite interesting.
I took the 5 years before Mr Ashley bought the club in 2007 and compared to the 5 years of available figures since he has been here, these are the results (after player trading).
Ashley era Pre Ashley
2007/08 -£20.3m 06/07 -£32.8m
2008/09 -£15.7m 05/06 -£12m
2009/10 -£17.1m 04/05 +£0.1m
2010/11 +£32.6m 03/04 +£4.2m
2011/12 +£1.3m 02/03 +£4.4m
Total -£19.2m Total -£36.1m
Now I can already see what people will say, we seem to be heading in the right direction and by the figures yes we are, the problem is the 2010/11 figures are made up of one big £35m sale, the full amount of which was included in that year’s figures.
The second issue is that in 2007 when Ashley bought the club, the TV rights for Premier League football had its first massive boost with the news that BskyB could no longer hold the monopoly on Premier league football. Setanta and ESPN entered the fold and TV rights were boosted by £700m, a 70% increase, which resulted in a minimum £12m of extra income to every team in the PL, I don’t know exactly what Newcastle’s share was but I’m sure at that time we would have been one of the higher end to benefit, in comparison the deal before that which ran from 2004-07 was actually £200m lower than the deal from 2001-04.
Many people say Ashley was suckered in by Shepherd and Hall but maybe he was the wise one and saw the TV money would solve the losses NUFC were making. Don’t get me wrong, I’m sure if Shepherd had remained at Newcastle that extra money would have probably been wasted but it would have at least been an opportunity to turn things around.
The point I’m trying to make is, are these figures really that much better? Are they worth the seeming lack of ambition that is currently the case? Or are they just masked by making big sales and extra TV money, while other revenues, mainly commercial, plummet? Couldn’t we, with a correctly run club, have so much more, with happy fans buying shirts and filling the stadium, and even, dare I say, some advertising money. I’m sure the figures could be great without needing to sell our best players.
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