Club's finances 2008-9

Andmcit · Apr 3, 2011

Newcastle football club losses increase

http://www.bbc.co.uk/news/business-12901992

Has there been a thread or comments on this - sorry if there is as I missed it!
Makes for interesting reading - Ashley still paying out the ÃÂ£'s to protect his 'investment'

Newcastle's revenues are expected to be higher now they have been promoted

Newcastle United Football Club sank ÃÂ£17.1m into the red as a result of relegation from the Barclays Premier League in 2009, figures show.

The loss, for the end of the 2008-09 season, compared with a ÃÂ£15.2m deficit in the season before that.

Turnover reduced 39% to ÃÂ£52.4m, according to accounts filed with Companies House.

The accounts also show that owner Mike Ashley put a further ÃÂ£42m into the club despite an increase in gate receipts.

The latest figures do not reflect Newcastle's return to the Premier League at the end of last season, with promotion worth anything up to ÃÂ£60m to successful clubs.

Nor do the accounts include Andy Carroll's ÃÂ£35m sale to Liverpool in January.

Newcastle managing director Derek Llambias said: "Our overriding aim in 2009-10 was to secure promotion back to the Premier League at the first attempt.

"Relegation presented a considerable challenge for us financially.

"With such a marked reduction in turnover, largely due to reduced TV and media revenue, we needed to cut our operating costs accordingly without jeopardising our ability to return to top flight football straight away.

"It has been a significant achievement to keep our overall loss at a level similar to the year before despite the impact of relegation, and our ability to do this has been helped immeasurably by the continued financial support of Mike Ashley, who injected a further ÃÂ£42m into the club last year interest-free," Mr Llambias said.
Sponsorship

Revenue from television and other media fell 57% to ÃÂ£16m, although new sponsorship deals were struck with Puma and Northern Rock.

Newcastle's determination to retain the services of enough Premier League-class players to launch a credible bid for promotion meant the wage bill still amounted ÃÂ£47.5m despite a 33% drop from ÃÂ£71.1m.

As a result, the wages-to-turnover ratio increased to 90.6% from 82.6% earlier.

Club debt was stable at ÃÂ£150m, although bank borrowings fell by ÃÂ£25m and were replaced by a loan of the same amount from Mr Ashley, taking the total he has loaned the club to ÃÂ£139.8m, all of it interest-free.
Click to expand...

It may show nothing or may help to rationalise whether there are now sizeable funds for anything more than the balance of whatever Carroll money there is left - has it not been said there has been some expenditure like the underpitch heating for the training ground at Benton etc?

Andmcit · Apr 3, 2011

Thinking about things, it probably doesn't amount to anything considering the improvement in
circumstances winning the Championship and surely the finances for 2009-10 are what are going
to a better indication of the current state of funds in the club? I used to hate Economics in school
but money makes this footie business successful or a failure these days...

Jose Enrique · Apr 3, 2011

I laughing for misleading title. Newcastle is going up in finances now but papers like talking rubbish for us.

Club's finances 2008-9

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Club's finances 2008-9

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