Newcastle’s Accounts Boost Put Them Back Amongst World’s Richest
Wed 27th Mar 2013 | Money & Finance
Newcastle United have re-entered the list of the world's top 20 revenue-generating clubs after increasing turnover to £93.3m according to their latest accounts released today.
The figures, to the year end June 2012, represent a 5.4% increase on the previous year and show an overall profit for the second successive year.
While last year's figures, which included an overall profit of £32.6m, were significantly boosted by the £35m sale of Andy Carroll to Liverpool, this year's figures give a clearer indication of the Club's positive performance overall with profit after player amortisation standing at £1.4m.
Turnover was boosted by a strong performance on the field, with a fifth-place finish in the Barclays Premier League swelling TV income by 14.6%. That figure is set to continue rising next year courtesy of improved broadcast agreements.
While the average attendance at St. James' Park has risen to 49,936 - an increase of 2,190 on last year, ticket revenue has fallen by 7% after the club froze season ticket prices with its ten and nine-year season ticket deal and continued its commitment to making football affordable through a variety of ticketing initiatives.
As a result of these initiatives Newcastle saw a hugely significant increase in the number of season ticket holders and members reaching its highest level since 2007.
However, commercial revenue fell by 12.7%, though the latest figures do not include income from the Club's new partnership deal with Wonga. That partnership, which is effective from the 2013/14 season, represents a significant increase on the Club's previous commercial agreements.
Operating costs have remained steady at £21.6m, but operating profit was down from £13.3m to £7.5m. A key factor is an increase in the Club's wage bill, which has risen by 20% to £64.1m following the signings of a number of key players, including Cabaye, Marveaux, Santon, Ba and Cisse.
That puts the Club's wages-to-turnover at 68.7%, an increase of 8.1% on last year.
Posted by: Aaron Gourley
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