Record Premier League profits announced with more to come
Premier league profits are looking guaranteed to show record figures.
With 12 of the 20 Premier League clubs of 2013/14 having released their figures, the collective profits are already showing almost £90m in total, with only 3 of the 12 posting losses.
The total Premier League profit is expected to reach around £200m once the other 8 clubs release their figures.
Newcastle are believed to be due shortly to release profits of as high as £50m or more, while Tottenham will also be expected to show a healthy return, mainly due to Gareth Bale’s record transfer.
The figures are after player trading and pre-tax, with Southampton and West Brom also looking set to boost the figure further.
The 12 who have announced so far:
£40.5m Manchester United
£10.3m West Ham
£9.4m Hull City
£9.3m Norwich City
£3.8m Stoke City
-£3.9 Aston Villa
-£12.0 Cardiff City
-£22.9m Manchester City
When you consider that only a year earlier (2012/13) there was a combined loss of over £315m from the twenty clubs, it is a huge turnaround.
The record though for losses was back in 2009/10 when combined losses were £406m, an average of more than £20m per club.
Whilst Financial Fair Play has played its part, by far the biggest factor is the extra Premier League TV riches of close to £30m a season on average per club, which kicked in last season for the first time. The turnaround from 2012/13 (losses of £315m) to 2013/14 (anticipated profits of around £200m) is approximately £500m. This is an average of around £25m per club, almost exactly the same average increase in the Premier League TV revenues.
With an even bigger increase in TV revenues to commence in less than 18 months time, the profits look to be heading ever higher, unless clubs collectively let the cash disappear on monumental wage increases and transfer fees.
It looks certain as well that a sure fire by-product of the profitability of Premier League clubs will of course mean another jump in the value of those clubs, if they can stay in the Premier League.
Which brings us to Newcastle United, with every chance of finishing top of the profits for last season (2013/14), Mike Ashley got away with it. The anticipated £50m or so profits delivered simply by not buying any players, selling the best player Cabaye for £20m and banking the extra TV cash.
This season has seen moderate investment in players and much of that will have been financed by the sale of the likes of Debuchy and Mapou, whilst other high wage earners such as Ben Arfa and Santon (since January) have also been removed from the wage bill.
Yet another healthy profit will be shown for this season but all of the time the squad gets weaker and most of Newcastle’s competitors outspend United.
Mike Ashley may have grabbed massive short-term profits but it has been at the expense of the future health of the football club.
Anybody who thinks Newcastle are guaranteed mid-table obscurity at the worst, may well have to think again if Ashley doesn’t change direction and show some ambition.
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