Newcastle United Financial Dashboard

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Newcastle United Financial Dashboard

Post by ProfitsonTarget » Tue Jun 23, 2020 12:10 pm

For all those interested, I've created a financial dashboard which graphically depicts all of the financial activities of the club from 2016 to 2019. Feel free to get in touch with any comments or questions. Cheers! ... l-overview ... -overview

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Re: Newcastle United Financial Dashboard

Post by Colly » Tue Jun 23, 2020 1:24 pm

Are we still balance sheet Champions?

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Re: Newcastle United Financial Dashboard

Post by Remember Colo » Tue Jun 23, 2020 1:43 pm

I'll be awaiting the Donkey Toon audit.

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Re: Newcastle United Financial Dashboard

Post by overseasTOON » Wed Jun 24, 2020 7:54 am

Ta! I'll have a gander when my hangover fades.

Knew I shouldn't have drunk last night. Its not even 9am and its 23 degrees outside.

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Re: Newcastle United Financial Dashboard

Post by TJR » Wed Jun 24, 2020 8:42 am

In the latest NUST email they've provided an analysis of the accounts as follows:

Towards the end of May, Newcastle United released their latest financial accounts for the year ending 30th June 2019, we provide some analysis of the accounts below.
The club's profit before tax improved by £18m from £23m to £41m, due to profit from player sales of £25m. Overall revenue dropped from £178m to £176m. Post-tax profit increased from £19m to £35m. The club generated £35m cash from operational activity, spending a net £19m on players and £2m tax, before paying £33m to Mike Ashley.
The £33m repaid to Mike Ashley - it should be noted Mike Ashley stated during this accounting period, with reference to Rafa Benitez, “I will continue to ensure that every penny generated by the club is available to him.” The accounts prove that this statement was, as most thought, simply not true.
The club receives only £1.1m for all Frasers Group (read Sports Direct) advertising yet as we know our beloved St. James' Park is now is synonymous with the red, white and blue of Sports Direct and its associated companies and brand. The club had not received payment for this revenue by year-end yet had bought and mostly paid for £1.057m of goods from Frasers Group (we understand this is bulk buying mainly PUMA merchandise at a discounted rate via Frasers Group to be sold in club stores).
The key point to note is that Mike Ashley was repaid £33m in the year on his loan to the club. A loan caused by his need to repay this loan upon purchase of the club (as per the terms of the finance used to pay for the expansion of St. James' Park), with this loan increasing due to financial support given following the two relegations under Ashley's tenure. This repayment was on top of a £10m repayment the previous year. The outstanding amount is now £111m and isn't showing as repayable on demand but in long term creditors.
Commercial revenue fell slightly to £27.7m - this is only marginally higher the club's commercial revenue when Mike Ashley bought the club 13 years. A monumental commercial failure.
There remains a contingent liability following the HMRC inspection alleging underpayment of taxation.
Wages to turnover ratio increased from 52% to 55% - but still one of the lowest in the Premier League. £97m was spent on player wages, 14th highest in the Premier League
No dividend was paid to MASH Holdings, the same as the previous year. This is the big point Ashley will make, in his view no money is taken out of the club. This is true in the form of dividends but he has directly taken out £43m in loan repayments over the last two years, despite stating every penny generated would be made available for Rafa Benitez.
£48m was spent on players and management post-year-end. This compared to £6m the previous year but most of it went on Joelinton.
Lee Charney gets no income from MASH Holdings and earned £267k in the year compared to £300k the year before. This is an incredibly low salary for a Premier League Managing Director.
Mike Ashley received corporate hospitality to the tune of £109k in the year and appears to have paid for it after the year-end.
So essentially our terrible commercial performance continues and Fraser Group (Sports Direct) continue to pay well below the market rate.

I've no issues with the loan repayment, though it would be nice if Ashley didn't lie about it as alluded to in the NUST email.

Overall a healthy profit which is obviously a good thing. Though more ambitions owners would have perhaps used some of it to further strengthen the team. Leaves us in a good position for new owners though, allows them to spend big without any worry of financial fair play.

It's a shame our commercial team are useless. Not increasing commercial revenue in 13 years is just embarrassing. Especially when you look at other teams who had a similar commercial revenue to us back then and where they are at now.

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Re: Newcastle United Financial Dashboard

Post by Don Sholeone » Wed Jun 24, 2020 10:42 am

The commercial revenue could work in our favor, PIF could potentially inflate our sponsorship and advertising and cite mismanagement by Ashley for the reasons it looks to be inflated under them, they could point to the likes of spurs who had similar commercial value and have seen massive increase. I'd also argue that the price of advertising hasn't matched the growth of the PL brand and its TV deals.

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