Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Newcastle United announce record profits

Mon 30th Mar 2015 | Money & Finance

Newcastle United Football Company Limited has today confirmed continued financial progress as it filed its annual accounts for the year ending June 2014.

The Club has recorded strong results, with the growth in commercial revenue playing a greater role in delivering a record £18.7million profit after tax, up from £9.9million in 2013.

The results signal the fourth consecutive year of recorded profit for the football club.

Operational losses of £0.6million in 2013 have been turned into an operating profit of £4.7million as the Club continues to outperform UEFA Financial Fair Play regulations.

The Club's turnover rose to £129.7million, up from £95.9million the previous year. Matchday revenue, which includes ticket sales and hospitality, dropped slightly to £25.9million, down from £27.8million in 2013, when the Club hosted seven additional home games as a result of its participation in the UEFA Europa League.

Season ticket renewal figures held steady, as did average Premier League attendances, which were 50,395 compared to 50,517 the previous season.

Media rights revenues accounted for £78.3million of turnover, a 53.3 per cent increase on the previous year. This reflected the new Barclays Premier League broadcasting rights deal as well as the Club's improved league position of tenth in 2013/14, compared to 16th the season before.

Most significantly, the Club reported strong commercial revenue growth delivering £25.6million in 2014, up from £17.1million 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.

The Club's debt continues to remain static at £129million in the form of an interest-free loan from owner Mike Ashley. None of the debt has been repaid to Mr Ashley nor has the owner taken any other monies from the Club.

Newcastle United managing director Lee Charnley said: "I am pleased to report a positive set of results which confirms the healthy financial position the Club now finds itself in and is a reflection of the prudent and measured manner in which we operate.

"The Club benefits from a supportive owner and is financially stable. This gives us a strong platform from which to grow, both on and off the pitch, a result of which means, as we move forward, we are able to net spend on the playing squad and invest in other areas of the business.

"The most pleasing aspect in this set of accounts has been the growth in our commercial revenue and it has been our strongest year yet in that respect.

"With our commitment to keeping ticket prices affordable for our supporters growing our commercial income has been crucial. The deals we struck with our two main sponsors, Wonga and Puma, together with a stronger focus on our commercial operations, have helped us achieve this growth.

"We believe financial stability will deliver positive on-field results for the Club."

The Newcastle United Supporters Trust said: "NUST believe that football clubs should be regarded as so much more than a traditional 'business'. They are sporting institutions which should be the focal point of the local community and represent the hopes and ambitions of its supporters. NUST does  recognise that clubs should not spend beyond their means and that any profit generated should be reinvested in the club to provide the best possible team on the pitch supported by the best infrastructure off the pitch."

Image: Action Images / Carl Recine

Posted by: Kev Howland

RETURN TO LATEST NEWS SECTION

SUBSCRIBE TO THE FCBUSINESS RSS FEED

If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk

To subscribe to our range of football newsletters including news, products and jobs CLICK HERE.

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

West Ham United launch shirt auction in aid of Mexican earthquake relief

Fri 22nd Sep 2017 | Money & Finance

West Ham United will auction all match-worn shirts from this weekend’s London derby against Tottenham Hotspur , with all proceeds going to the victims’ families and survivors of this...

Stoke City success bringing benefits to region

Fri 22nd Sep 2017 | Money & Finance

Premier League football brought £130m to Stoke region and employed 2,200 people in one season, an EY study finds. The chance to play in the Premier League not only brings joy to fans of a club...

Manchester United Post Record Revenue Of 581m

Thu 21st Sep 2017 | Money & Finance

Manchester United has followed a successful year on the pitch with a successful year in business posting record revenues for the year ending 30 th June 2017. In a season which saw the club, under the...

30 September: the other deadline day

Mon 18th Sep 2017 | Money & Finance

As of 30 September 2017, all football clubs, sports agencies and their intermediaries will fall within the remit of the Criminal Finances Act. Through this Act, criminal sanctions can be imposed on...