Newcastle profits provoke questions

Newcastle profits provoke questions
Newcastle owner Mike Ashley.

Newcastle have emerged as one of the most profitable clubs in the Barclays Premier League after announcing record profits of £18.7million last season.

It is the four successive year the club has made a profit and cements Newcastle’s position, in financial terms at least, as one of the most successful in the top flight.

Everton made a profit last season of £28.2m, Manchester United £23.9m, Chelsea £18.4m and Arsenal £4.7m while Sunderland lost £16.9m and Manchester City made a £23m loss.

But Newcastle fans’ groups say the figures have provoked more questions than answers.

The club have not released the full annual report, only selected highlights with no detailed explanation as to how £28.5m of extra costs have been incurred.

Mark Jensen, editor of online fanzine themag.co.uk, said he had expected profits to be closer to £50m given the increase in income from television rights and the sale of Yohan Cabaye to Paris St Germain for £19m.

Newcastle also reported revenues increase by 35 per cent from £95.9m to £129.7m. More than half Newcastle’s income – £78.3m – came from the new Premier League television rights deals, with commercial income also increasing.

Jensen said: “This has just provoked more questions that answers. There is £28.5million of costs there is no explanation the wages to turnover ratio is also not included.

“We had anticipated a profit of around £50m especially with Cabaye being sold.

“The way that most fans look at it is that Newcastle didn’t buy a single player in the whole season and sold Cabaye.

“Everyone knows how much these clubs are getting from TV so Newcastle fans would like to think more profit would mean more team strengthening but that has not been the case.

“There seems to be both a lack of transparency and ambition.”

Newcastle finished 10th last season and are currently 12th in the Premier League table.

A Newcastle statement said: “Most significantly, the club reported strong commercial revenue growth delivering £25.6m in 2014, up from £17.1m in 2013.

“This 49.7 per cent increase was largely the result of two lucrative new deals with the club’s principal sponsors, Wonga and Puma.”

Newcastle’s debt remained static at £129m in the form of an interest-free loan from owner Mike Ashley – none of the debt has been repaid.

More in this Section

'Tenacious player who gave his all': Tributes paid to former Roscommon footballer Conor Connelly who has died'Tenacious player who gave his all': Tributes paid to former Roscommon footballer Conor Connelly who has died

Tommy Fleetwood hopes Ryder Cup can be ‘light at the end of the tunnel’Tommy Fleetwood hopes Ryder Cup can be ‘light at the end of the tunnel’

Conor McGregor wants Defence Forces to help with lockdownConor McGregor wants Defence Forces to help with lockdown

Pedro reveals struggle as he is separated from his children during shutdownPedro reveals struggle as he is separated from his children during shutdown


Lifestyle

Carol O’Callaghan sets out to prove how in the right hands items like discarded chairs can be transformedRecycling old chairs? Here's some practical advice from Cork experts

People and their businesses find themselves in an unprecedented moment.Designs for life: How designers are responding to the Covid-19 crisis

Spring is here and with it every reason to get out of the house and start planting veggies with the children. No garden? Not to worry, a large flower pot or plastic tub will produce plenty of edible greens. Helen O’Callaghan reportsWatering can-do: Veggie growing with the children

More From The Irish Examiner