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
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