Must Read: Why NUFC profits are no miracle under Mike Ashley
An excellent look at the NUFC profits and the truth of what has really gone on at Newcastle United under Mike Ashley, has been published today.
Turning his eye to St. James’ Park, ‘The Swiss Ramble’ (an ex-pat Brit living in Switzerland who writes about the business of football) has investigated exactly what the finances really tell us in the context of the whole club.
You might need to take a little time to read it as Swiss Ramble goes really in-depth, but here are a few of the highlights below.
Thanks to the new TV money, most Premier League clubs actually reported profits in 2013/14 with only five clubs making a loss. That said, Newcastle’s post-tax profit of £19 million was the fifth highest in England’s top tier, only surpassed by Tottenham Hotspur £65 million, Southampton £33 million, Everton £28 million and Manchester United £24 million.
As you can see by Swiss Ramble’s image below, it is a myth that Premier League clubs can’t make money these days, with 15 of the 20 clubs making a profit last season.
Though none of them did it by a combination of simply banking the extra TV money, buying not a single player AND selling their best player.
More key points that Swiss Ramble makes:
Fourth consecutive profit:
In fact, this is the fourth consecutive year that Newcastle have made money and they have accumulated profits of £63 million since 2011.
Poverty of playing squad:
It’s little wonder that supporters are enraged by this level of profit, especially when they compare it with the absolute poverty of the playing squad.
If selling players not included…:
If player trading were to be excluded, Newcastle would not be one of the more profitable clubs in the Premier League.
Devil in the detail:
Before the big man arrived, Newcastle’s revenue was £87 million in 2007, which has since increased to £130 million in 2014. On paper a 49% (£43 million) growth is reasonably impressive, but the devil is in the detail, as this has been entirely driven by the centrally negotiated Premier League TV deals, which have helped produce a £52 million growth in this period.
To read Swiss Ramble’s excellent full article go HERE
If you would like to feature on The Mag, submit your article to [email protected]