These, of course, are the accounts which cover last season, our first since being promoted back to the Premiership at the first attempt. As previously announced in a PR statement by the club’s Managing Director, Derek Llambias, operating losses before player trading fell to -£3.9 million, which is significantly down from a loss of £33.5 million for the period which covered our season in the Championship. However, the club’s overall profit after player trading was a mighty £32.6 million. This of course was due largely to one man, not Mike Ashley, or Derek Llambias, but Andy Carroll, whose sale to Liverpool FC brought in a huge £35 million to the club’s coffers. This is up from a loss of -£17.1 million in the previous year. According to the report, this profit “has been transferred to the club’s reserves.”
Newcastle United debt
On the matter of the club’s debts the report and financial statements reports:
“The overall level of net debt (including shareholder support loans and net of cash) has fallen from £150 million to £130.5 million.”
Basically, this figure is a £140 million pound debt to the club’s owner, Mr. M.J.W. Ashley, minus a positive bank cash balance of £9.5 million. This is still significantly higher than it was when Mr. Ashley took over the club in 2007, when it was around £70 million. However, this £70 million figure did not include the mortgage on the ground which had to be paid off, which took the true level of debt to around £124 million.
Some other points of interest
Interestingly, although revenues from things such as TV revenues and corporete hospitality from the glory hunting “Prawn stotty brigade” rose significantly for one obvious reason (Promotion to the Premiership), other revenue streams were “relatively flat” to use the words of the report. These included such things as season ticket revenue, gate receipts, commercial, catering and sponsorship revenue. On this the report stated:
“Commercial turnover was relatively flat compared with the Championship season and it remains a potential growth area and the club will be working over the next few years to grow this revenue stream.”
Of course, you can see all these figures in detail by following the link below and reading the club’s audited accounts.
I may or may not write some kind of opinion piece or more in depth commentary about the accounts in the fullness of time, but for the moment I will just put the accounts themselves up for the perusal of all you budding accountants out there.
Link to Newcastle United accounts, 2011
Newcastle United accounts, 2011 (PDF).