24-05-2018, 07:56 AM
May 24, 2018
The authoritative Swiss Ramble has added his comments on Newcastle United's 2016/17 accounts. He notes, 'Revenue has decreased by £1m since Ashley’s arrival in 2007 from £87m to £86m, despite £22m more central TV money. Commercial has fallen by £13m (46%), while match day is £10m (30%) lower. In fairness, 2017/18 revenue in PL will be much higher, estimated at £175-180m.'
It should be noted that if one factored in inflation, the £1m decline would look larger. Using the Bank of England inflation calculator £87m would be £110.8m in 2016 so the real decline in revenue is almost £24m.
He also notes, 'Over the years player sales have had a decent impact on Newcastle United profits contributing £180m since 2008. The club would have made small losses without this activity until 2014.' Average net spend under Ashley has been around £6m a year.
According to the Deloitte Money League Newcastle United had the 14th highest revenue in the world in 2007 before Ashley’s takeover, just £19m lower than the 10th placed club. In 2017 this gap has soared to £263m. Based on 17/18 estimate, Newcastle would be in 19th position, just ahead of Napoli.
'Commercial income should increase in 17/18, thanks to new shirt sponsor Fun88, reportedly worth £6m a year, plus first sleeve sponsor MRF Tyres. Puma have been the club’s kit supplier since 2010.'
However, 'Not only is the club's commercial income lower than £28m that Ashley inherited, but they have fallen way behind rivals, e.g. gap to Tottenham Hostpur has grown from £11m to £58m in that time.' The Swiss Ramble argues, 'The ubiquitous presence of Sports Direct advertising surely puts off other potential partners.'
The club 'enjoyed the fifth highest wage bill in England before Ashley bought it in 2007, but in 10 years this has risen by just £20m (34%) from £60m to £80m, while others have increased wages by significantly more, e.g. Tottenham Hotspur up £83m (190%) from £44m to £127m, so Newcastle dropped to 15th.'
'Nerwcastle's £152m debt is about twice as much as the £77m Ashley took on in 2007 and is the highest in his reign. It’s the first time an overdraft has been required since 2013. It was the second highest in the Championship, only below Brighton £207m (new stadium & training ground).'
The authoritative Swiss Ramble has added his comments on Newcastle United's 2016/17 accounts. He notes, 'Revenue has decreased by £1m since Ashley’s arrival in 2007 from £87m to £86m, despite £22m more central TV money. Commercial has fallen by £13m (46%), while match day is £10m (30%) lower. In fairness, 2017/18 revenue in PL will be much higher, estimated at £175-180m.'
It should be noted that if one factored in inflation, the £1m decline would look larger. Using the Bank of England inflation calculator £87m would be £110.8m in 2016 so the real decline in revenue is almost £24m.
He also notes, 'Over the years player sales have had a decent impact on Newcastle United profits contributing £180m since 2008. The club would have made small losses without this activity until 2014.' Average net spend under Ashley has been around £6m a year.
According to the Deloitte Money League Newcastle United had the 14th highest revenue in the world in 2007 before Ashley’s takeover, just £19m lower than the 10th placed club. In 2017 this gap has soared to £263m. Based on 17/18 estimate, Newcastle would be in 19th position, just ahead of Napoli.
'Commercial income should increase in 17/18, thanks to new shirt sponsor Fun88, reportedly worth £6m a year, plus first sleeve sponsor MRF Tyres. Puma have been the club’s kit supplier since 2010.'
However, 'Not only is the club's commercial income lower than £28m that Ashley inherited, but they have fallen way behind rivals, e.g. gap to Tottenham Hostpur has grown from £11m to £58m in that time.' The Swiss Ramble argues, 'The ubiquitous presence of Sports Direct advertising surely puts off other potential partners.'
The club 'enjoyed the fifth highest wage bill in England before Ashley bought it in 2007, but in 10 years this has risen by just £20m (34%) from £60m to £80m, while others have increased wages by significantly more, e.g. Tottenham Hotspur up £83m (190%) from £44m to £127m, so Newcastle dropped to 15th.'
'Nerwcastle's £152m debt is about twice as much as the £77m Ashley took on in 2007 and is the highest in his reign. It’s the first time an overdraft has been required since 2013. It was the second highest in the Championship, only below Brighton £207m (new stadium & training ground).'