Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

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

Newcastle United Make 32m Profit

Wed 6th Apr 2016 | Money & Finance

Newcastle United made a profit of over £30m after tax according to their latest financial results for the year ended 30th June, 2015.

The club, that finds itself in 19th position in the Premier League this season, generated a profit after tax of £32.4million (2014: £18.7million) and a net cash inflow from operating activities of £39.1million (2014: £32.9million) despite a poor season in which they narrowly avoided relegation to the Championship.

Of the £39.1million cash generated, £23.8million was spent during the financial year on the playing squad (net of disposals). The remainder (which formed part of the cash balance at 30th June, 2015, of £48.3million) has been spent (or has been contracted to spend) in full since 1st July, 2015.

In total, the summer 2015 and January 2016 transfer windows Newcastle had a net spend on the playing squad of just under £80million along with a significant increase in the club's annual wage bill.

Turnover remained fairly constant compared to the prior year, falling less than one per cent overall. Matchday revenue increased three per cent to £26.8million (2014: £25.9million).

Media revenue fell one per cent to £77.2million (2014: £78.3million) due to the reduction in merit based payments resulting from the club's 15th place finish (2014: 10th) being partially offset by an increased number of games broadcast live (20 compared to 14) together with an increase in overseas TV revenue.

Commercial revenue fell three per cent to £24.9million (2014: £25.6million), the most significant factor being the one-off income from the Kings of Leon concert in the prior year. 

The club's debt remained static at £129million all of which is made up in interest free loans owed to Mike Ashley. The accounts reveal none of the debt has been repaid, nor has Ashley taken any other monies from the club during the year or since the year end.

Managing Director, Lee Charnley, said: "We appreciate that, at the present time, football results and not financial results are what our supporters want to see from us.

"That said, it would be wrong for the club not to acknowledge the submission of our accounts for the period July 2014 to June 2015.

"We understand, however, that what you want to see are results on the pitch. There are still 21 points to play for and lots can, and likely will, happen over the next seven games.

"We, of course, acknowledge the seriousness of our situation. However we must remain positive and retain the belief that we can secure our Premier League status and we are doing everything we can to support Rafa and the team."

Action Images via Reuters / Lee Smith Livepic

Posted by: Aaron Gourley 

Tripleplay 468 banner V2 (468x60_Animated_v2.gif)
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

Watford FC: An Unlikely Financial Success Story?

Wed 26th Apr 2017 | Money & Finance

The business model carried out by the owners of Watford FC is unlikely to be adopted by too many sectors outside of football, but by hiring and firing a conveyor belt of managers, they have managed to...

Newcastle United & West Ham Face Tax Investigation

Wed 26th Apr 2017 | Money & Finance

Newcastle United and West Ham United have been targeted by HMRC for alleged Tax and National Insurance fraud. Officers are understood to have raided the offices at St James’s Park and the London...

Premier League Revenues Grow But Losses Return

Thu 20th Apr 2017 | Money & Finance

Premier League clubs’ revenues increased to a new record of £3.6bn in 2015/16, according to Deloitte, the business advisory firm. Analysis of the financial results of Premier League clubs...

7 Tips From The Best Online Football Merchandise Stores

Thu 13th Apr 2017 | Money & Finance

CEO, Lewis Holland and the team at DiscountIF team have been studying various merchandise stores of football clubs in the UK. This article was originally posted here. We’ve compiled a short list...