We now know how well Newcastle United have done on the pitch in 2017/18.

A tenth place finish and 44 points delivered, thanks to that win over Chelsea topping things off.

What about when it comes to the money side of things?

Well the largest part of the Newcastle United revenue comes from TV and broadcasting and now the final matches have been played, the forecasted Premier League TV money club by club share out for this season can be seen below, in the table compiled by the excellent Sporting Intelligence who report on sport’s relationship with money:

newcastle united

(Sporting Intelligence added the following notes to their table – Precise amounts all TBC +/- the odd million. The biggest winners of the final day: West Ham, who bagged an extra £4m for beating Everton and climbing two places. There is an error in this updated table; Stoke’s win of course takes them above WBA. So they will be relegated with £2m more than stated and WBA with £2m less. Apols and sorry, Baggies.)

So Newcastle United are set to bank roughly £126m for 2017/18 from TV and broadcasting.

So what about the overall total?

Well, we do have the figures from the Premier League season of 2015/16.

Rounding figures up, this is what Newcastle banked two seasons ago:

£73m TV and Broadcasting

£25m Gate and Matchday

£28m Commercial and other income

Total turnover of £126m

So moving forward to 2017/18, what can we expect?

Well we know TV is set to hit £126m, which is exactly what Newcastle United banked in total two seasons ago.

In 2015/16, Matchday (£25m) and Commercial (£28m) added another £53m, and I think at the very least those figures should have been matched.

In fact, they should surely have gone up.

Crowds have increased from 49,754 average in 2015/16 to 51,992 in 2017/18 and tickets prices have gone up.

The FUN88 shirt sponsor deal was claimed to be NUFC’s highest ever, whilst with MRF the club gets extra money from sleeve sponsorship.

With the feel good factor provided by Rafa and the players, especially compared to that McClaren relegation season, we should surely be looking at more money coming in from every direction.

Whether that is shirt/merchandise sales, even programmes and matchday spend on food and drinks etc etc.

The bottom line is the 2017/18 turnover must surely be at least that 2015/16 figure (£126m) plus the extra £53m from TV this season, though as I have explained above, both Matchday and Commercial must surely have gone up as well.

As for costs?

This is where we are in the dark but once again we can use 2015/16 as a good guide.

I simply can’t see how wages can be higher this 2017/18 season compared to 2015/16.

Pretty much the whole squad on the wage bill back in 2015/16 had been bought as Premier League players and there was a massive clearout after relegation. The likes of Coloccini, Steven Taylor, Obertan, Marveaux, Townsend, Wijnaldum, Sissoko, Janmaat, Doumbia, Cisse, Cabella all leaving. Then later you also have seen Krul, Tiote, Thauvin, Siem de Jong etc all exit as well.

We then saw replacing them, a whole load of players recruited for the Championship promotion push and then the largely bargain shopping last summer, a combination which makes up the vast bulk of this squad that has finished 10th.

With wages being by far the largest part of operating costs, it is very difficult to see the 2017/18 operating costs being higher than the £96.5m figure of 2015/16, indeed it should be lower.

So with likely income in 2017/18 being at least £179m and operating costs no higher than £96.5m, that leaves us with around £82.5m. With the only big unknown being what kind of figure player transfers/amortisation will be.

In 2015/16 that transfers/amortisation figure was £28.3m in the books, even if it was a similar figure (which I very much doubt – surely lower than that 2015/16 figure), you are still looking at a profit of at least £55m or so, probably higher, maybe significantly higher…

For whatever reason, Newcastle United still haven’t even released the accounts for the Championship season of 2016/17! The deadline was almost seven weeks ago and the club will be fined for filing them late but the level of fine is a pittance for Mike Ashley. It will be interesting though when the 2016/17 accounts are filed at Companies House, as the club may give us some indication as to what has happened in this last year.

For example when the 2015/16 NUFC accounts came out, they chose to add a special note saying that Rafa Benitez had made a profit of £40m in the summer 2016 transfer window but that the majority of that £90m for players sold, would only reach the club’s bank account in the seasons following 2016/17.

Mike Ashley got away with it this season when limiting Rafa’s transfer spend but no excuses this time not to give the manager serious backing from profits generated, plus extra cash from the likely sale of Aleksandar Mitrovic and others.

It would be very interesting to know what is happening in these talks between the club and Rafa’s people, George Caulkin of The Times reported that Rafa Benitez’ advisors had ‘laughed off’ reports that Ashley was prepared to give him an £80m transfer budget.

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  • Fireman Sam

    Where’s the money gone Mike?

    • Dont stop bobbi fleckman

      You’ve not read the piece, have you?

      Micky, Leazes’

    • TheNutJob

      Fleckman does the books and i mean does them

  • Stephen Paylor

    You also must remember that amortisation as with depreciation is simply a tax write off. That money is still eaned but discounted for tax accounting only. With Sissoko installment i would estimate an actual 185 million and an expenditure of less than 90 million. There is no way the wage bill now is as big as it was then. 95 million would be the net amount i think. Add in maybe 20 million for Mitrovic/Colback and i think it would be safe to say we should expect a transfer spend of around 70 million this summer keeping money aside for potential good deals in the January window. Dubravka 4 million and Kenedy 18 million. New left back 15 million, striker 25 million. 4 in and 6 out (Mitro, Gamez, Colback, Haidara, Lazaar, Elliot/Darlow)

    • Dont stop bobbi fleckman

      Sissoko was accounted for last year, not 2017/18. Don’t mix up cash flows with transactions unless there are contingencies.

      • Stephen Paylor

        Sissoko was $6 million a year for 5 years a couple of seasons ago.

        • Dont stop bobbi fleckman

          That’s not how it’s accounted for, the revenue is counted at the moment the transfer happens. Only contingencies are accounted for later, i.e. if Sissoko had to play 50 games for an extra £1m etc etc.

          • Stephen Paylor

            You are seemingly trying to complicate the cash amounts coming in and out on the P&L. The accrued accounting practices are irrelevant for everyone other than the tax man. Im talking what is coming in and going out in cash real time. Balance sheet is irrelevant.

          • Dont stop bobbi fleckman

            The cashflows are not the same as the p&l estimate that’s in the piece, we can agree on that although cashflows are derived from the p&l and the budget will be based on the profit estimates.

            The budget will be for new player purchases, their wages and agent fees as all of this will be new cost.

  • Andy Mac

    Yes Sky have stolen the soul of football not only because of the rearranged games on a Monday night, Sunday afternoon or on Christmas Eve etc etc but also because they’ve made football so cagey and unattractive for teams below sixth/seventh place.

    With the wealth involved in football now, owners dont care about attractive free flowing football what they want is to SURVIVE. Pure and simple

    • Come&TakeIt1836

      I agree. I might even change your survival term ‘want’ to ‘need’. The financial impact of a relegation cannot be overstated.

  • Come&TakeIt1836

    The writer is adequately working to describe what the snapshot of ledger will look like when eventually released but the key is really the cash flow timing and the projected needs. This year’s salaries and operating expenses are already paid and the tv revenues are just arriving so the snapshot view isn’t really accurate to the decisions being made at the club.

    This tranche of cash along with next year’s game day receipts, any future commercial income, and any cash in the till at this yearend is what has to pay for next year’s wage bill, next year’s operating needs, and any determined capital improvements (if any). The balance is what is available for transfers and the associated fees that occur this summer and in January.

    • Dont stop bobbi fleckman

      He’s estimating the p&l figures, the only area that I’d say he differs is his player amortization figure.

      Cash, as you say is a different animal.

      • Come&TakeIt1836

        Yes but his conclusion was that from these p&l numbers a sizable transfer kitty should be available from the profits generated. That isn’t exactly how it works (as I’m sure you understand). This is the error I was pointing out.

        A club’s process for determining a transfer pot could be rather casual for lack of a better word. Though for different reasons, that doesn’t sound like Rafa or Ashley. I suspect they are mapping out potential targets (provided by Rafa’s team with the info ‘pressure tested’ by Ashley’s team), estimating transfer costs and wage bill impact for the coming year (same), estimating player sells and wage impact (same) determining if facility upgrades will occur (both groups work together) and seeing what is left over so they don’t overspend their cash flow before the new season even starts. Then going back and readjusting targets and figures to get the budget into an agreeable plan for all (if possible). I can believe that to be being a multi-meeting process over a few weeks.

        • Dont stop bobbi fleckman

          I agree with you in the most part. When Ashley sayys “every penny” I’m taking it that he’s not going to take back his loan that got us promoted so we’re not dragging the dead duck of relegation but the timing of receipts and payments is still relevent. He should be fairly confident to allow some overdraft to pay for say salaries whilst the TV money arrives later.

          The estimate in the piece is high but essentially, the profit for the year should be about £50m -£60m which should be the rough budget for new players, agent fees and the new salaries.

          • Come&TakeIt1836

            Agreed on all points. Next summer could be a really solid transfer period.

          • Dont stop bobbi fleckman

            Careful, you’ll be called a troll by the simpletons pretty soon.

          • Come&TakeIt1836

            It is well past the first occurrence and ‘troll’ doesn’t begin to touch the multitude of names or the cyber-bullying efforts launched in my direction. But my conscience is clear… I don’t believe anyone can claim a personal attack from me… unless someone wants to include me comparing Leazes and Jezza’s online relationship to Gaston and LeFou in Beauty and the Beast as a personal attack.

          • Dont stop bobbi fleckman

            Heh heh, there is a live-in going on. Ironically, Leazes’ has his Micky moose and Fireman Sam aliases

        • Guest 2

          As I have shown in another set of comments, you have no clue what you are actually talking about. You make things up and change facts in order to try and make your argument.
          Are you auditioning for an accounting role at NUFC?

          • Dont stop bobbi fleckman

            What are those other comments?

          • Billmag

            Fleckmans on the prowl again with his made up fact’s.

          • Guest 2

            Another pseudonym being used.

          • HarryHype59

            Yes, I thought that too! Same old excuse mongering!

          • Come&TakeIt1836

            You have not ‘shown’ anything. There is nothing ‘made up’ here. It is how the business world works.

          • Guest 2

            You know as much about business as do you about accounting.
            Fantasist wannabe accountant – the only people who ever defend Ashley.

          • Come&TakeIt1836

            You are welcome to provide an alternate theory as to why cash flow isn’t what is important here.

          • Guest 2

            Sick to death of your theories and alternate realities. Like the club has paid off over £130 million of Ashley debt.

            Fantasist.

          • Come&TakeIt1836

            Fair enough. I accept that you have nothing worthwhile to offer to the discussion.

        • Weyhhadaway

          Those few weeks of planning should have happened already, in a real world scenario, to be ready for the window opening.
          Which is the worrying thing about this whole Rafa negotiation. He has picked his targets, the club have sat on their hands and waited things out, what they were waiting for is beyond me, oh yeah this is the Toon, I nearly forgot.

          • Come&TakeIt1836

            I agree. It should be a process that is wrapped up by now. For all we know it is, too. Some info being made public would not help. Some very basic info being made public would sure help the fans.

        • mactoon

          I don’t think ‘Ashley’s team’ have anything to do with it. I think Rafa will cost everything out in terms of players, transfer fee and wages and his list is then handed to Charnley who, under the direction of those above him put in bids below the selling club’s valuations which means he slowly works his way down Rafa’s list of names.

          • Come&TakeIt1836

            I’m just talking about the budgeting/planning process and not the actual recruitment process. Unfortunately I think you are correct on how the process works at that point. Hopefully it changes a bit this summer.

    • Philly

      Thank you for the insightful post. In light of what you said about he potential transfer budget and how it is worked out, what do you think Rafa’s specific demands to Ashley be in his contract negotiations? And do you think they can find a compromise?

      • Come&TakeIt1836

        This is certainly just what I think and what do I know about what Rafa’s wants… nothing.

        I suspect Rafa isn’t looking so much for a specific number. If I were in his place, I’d want some sort of agreed formula (of sorts) that can be used every year to determine money available. It would generate a specific number for this summer/January since the inputs are known but its use could be replicated every year so this protracted discussion isn’t needed.

        The bigger issue is probably the speed of decisions and how much autonomy does Rafa have.

        I think they can find a compromise so long as the process and communication doesn’t become too obfuscated between the layers of control and approval (Charnley to Barnes to Ashley).

    • HarryHype59

      The club has already received most of this year’s TV income. Contrary to popular myth, the money is paid in installments ie. July, Jan with a final performance related payment getting paid around now. There were also monthly payments from the TV deal to ease cash flow.

      • Come&TakeIt1836

        I’ve looked for substantiated proof of the installment theory and not found any. If you can point me in the direction of that documentation and approximately how much comes at those installments, I’d be most grateful. Until then I’m sticking with the generally accepted timeline.

        It isn’t conclusive but furthermore, the club has historically taken out deeds of assignment with the year end tv cash as the guarantor on the deed.

        • mactoon

          I have to admit I’ve heard the same about TV money paid in instalments but have been unable to find evidence that this actually happens

        • HarryHype59

          The Newcastle Evening Chronicle (I know) ran an article in July 2017, claiming the TV cash is paid in installments. The first one is in July (2017) followed by a further payment in January (2018). A final payment reflecting the club’s league position is made around now.The

          In addition each EPL club, receives monthly smaller payments to ease cash flow issues.

          Now I know the Commie Gill is a discredited left wing rag in many respects. However, from a business perspective the instalment payment system makes sense.

          Regardless of how and when the money is to be paid, NUFC will earn £126m from TV.

          • Come&TakeIt1836

            I’ve done web searches and now specifically searches of the Chronicle’s archives and find nothing to support it. I found an article in the Chronicle last July when Sky announced they were picking up several games in the coming season. The Chronicle writer thought that would increase Rafa’s transfer kitty last summer. If you can narrow the parameters further, that’d be great. Unfortunately most stories are talking about annual totals. If there are installments, it isn’t discussed.

            Installment payments would make sense for the teams but not for Sky. If they (or the Premier League office itself) gets to hold the money and it doesn’t make its way to the teams, that helps the holder’s cash flow and interest generation. It just depends on how the deal is agreed. Unfortunately it isn’t always about making sense.

          • HarryHype59

            The instalment story was definitely published in the NEC in July or August last year.

          • Come&TakeIt1836

            Ok. I’ll keep looking. Much of the time their reporting seems to be how they ‘hope’ the world is and does not necessarily reflect an ‘understanding’ so I’m doubious unless I can validate elsewhere…but I’d like to read it as a start. Thanks.

          • HarryHype59

            If you type in “TV money + installments” on the Chronicle website, it shows a number of articles referring to installments! I agree the NEC is not the most reliable, but staggered payments makes sense from the perspective of the clubs , for cash flow reasons.

          • Come&TakeIt1836

            Interestingly, they have an article today claiming the same… but no substantiation on the claim or suggestion how much has already been paid into the club. It seems amazing to me that there is not one corroborating article on the web (that I have found) explaining the timing of payouts. Thanks again.

  • TheNutJob

    Hola amigo`s. still no dosh for Rafael, still no progress on his contract talks.
    a sense of foreboding looms as Fatty ducks & dives as usual.
    😠😠

    • Wor Lass

      Bienvenue! Did you get time off for good behaviour?

      • TheNutJob

        Bonjour, watched the Mighty Toon pagger the cockney`s 3-0
        should have beat Spurs as well
        got back last night
        😎😎

  • TheFatController

    The Ashley Apologists’ conundrum:-

    – when we have a manager and transfer policy that Ashley approves of, we get poor team spirit and relegated

    – when we have a manager and transfer policy that Ashley disapproves of, we get great team spirit and great finishes to the season.

    And that, in a nutshell, is why he shouldn’t be allowed anywhere near our club.

    • Dont stop bobbi fleckman

      I think Ashley very much approves of Rafa.

  • FatParosite

    So there we have it. With NUFC running a profit nearly one quarter of the club’s worth potentially every year, why would Ashley sell his cash printing machine? More ambitionless football for those all too willing to go and watch it.

    • Dont stop bobbi fleckman

      The other side of the coin, why would someone not pay for a business that would pay for itself in 3 years? Seem undervalued to me.

    • Knowles2

      He wants to sell because he could do with the money, which he will probably use to reinforce his real cash cow and that is sports direct.

  • Billmag

    A Multi-Million £ concern run by a tin pot office boy you couldn’t make it up, what a shambles no progression ie training facilities, team progression. The club is run simply for the Ashley profit machine.

    • Dont stop bobbi fleckman

      “you couldn’t make it up” except you just made that up

      • Billmag

        What’s made up ? Has the club progressed in the last 11years, has the training facilities improved under this regime, has the team improved before Rafa, nothing made up just fact’s.

        • Dont stop bobbi fleckman

          Its progressed as in it exists and is solvent. You say it’s run by a tin pot office boy and run for Mike Ashley’s profit. He’s not made a penny yet.

          • Billmag

            With 52,000 going every other week it can’t do anything other than exist, you can keep on believing he hasn’t made a penny yet as much as you want, that is simply not true and you know it, the club isn’t solvent as has been pointed out to you many times off different posters on this forum we are more in debt now than we ever where under H&S and with increasing revenues from TV.

  • Wezza147

    So will MA use the takeover as an excuse again? Let’s wait and see. I wonder why they haven’t filed the accounts at companies house yet and are weeks and weeks past the deadline.

    • FatParosite

      They won’t release those until they have some good news to counteract the negative aspects likely to be seen.

      • Wezza147

        Judging by this regime you may be right on that!

  • Lord

    And still the accounts are overdue for the 2016/17 season. It really doesn’t take that long for an organized company to submit end of year accounts.

    Something fishy going on I think. Could there be a reason they are being withheld for as long as possible?

  • mactoon

    Without last seasons accounts we don’t know what profit/loss was made so this hasn’t been taken into account and will probably be used as an excuse to reign in this years spending?

    I remember Charnley setting the scene back in April 2017 that relegation would prove disastrous for the next accounts:

    “The financial impact of relegation is difficult to overstate and this will become evident in our next set of financial results for the year ending June 2017. The biggest impact by far is the dramatic reduction in centrally distributed income that comes with dropping down a division; the reality being our income in this area is forecast to fall by over £30m compared to 2015-16″

  • Weyhhadaway

    Numbers don’t lie, the money is there to back Rafa, he accepted the promise of getting all money generated when he took the job, he has done the same numbers game as us. Give him the profit, past and present transfer income and let his team do the negotiating. Do that and we will have our main transfer targets in by the time the world cup rolls around.

  • Wezza147

    “He hasn’t made a penny from the club”

    Oi Fleckman don’t make me laugh. Why do you think he owns the club? From his own generous heart and doesn’t get paid any wage for being owner? You are a total clown.

    • Knowles2

      He own the club for the simple reason he thought he could turn it around, get it finances in order and then flogged it off for around 500m to 1bn to a middle eastern billionaire. Unfortunately for Ashley fair play rules were introduced which means billionaires appears to have little interest in acquiring a premier league plaything for themselves.