By David Owen
March 30 – Newcastle United have become the latest Premier League club to report strong financial figures for the 2013-14 season. For the year ending June 2014, the Magpies generated a record after-tax profit of £18.7 million, not far off double the £9.9million achieved in 2013, and the fourth consecutive year in the black for the club which is owned by businessman Mike Ashley.
While the full report could not yet be located for scrutiny, a summary of the results on the club website explained that the prior year’s operational losses of £0.6 million had been turned into an operating profit of £4.7 million.
As with other Premier League clubs, surging media rights revenues as a result of the league’s new TV deals were reflected in turnover, which rose 35% to £129.7 million, up from £95.9 million the previous year. Matchday revenue, including ticket sales and hospitality, dipped to £25.9 million from £27.8 million. In addition to broadcasting income, commercial revenue also showed strong growth at £25.6 million, up from £17.1 million a year earlier, in a jump explained by the club as “largely the result of two lucrative new deals with the club’s principal sponsors, Wonga and Puma”.
While the summary included no more detailed breakdown on costs, it stated that Newcastle’s debt, in the form of an interest-free loan from Ashley, remained “static” at £129 million. “None of the debt,” the club said, “has been repaid to Mr Ashley nor has the owner taken any other monies from the club”.
Lee Charnley, managing director, said that the club, which has spent much of the present season anchored in mid-table, benefited from a “supportive” owner and was financially stable. “This gives us a strong platform from which to grow, both on and off the pitch, a result of which means, as we move forward, we are able to net spend on the playing squad and invest in other areas of the business.
He continued: “With our commitment to keeping ticket prices affordable for our supporters, growing our commercial income has been crucial…We believe financial stability will deliver positive on-field results for the club.”
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