Newcastle United’s full accounts online and broken down

Newcastle United accounts.

NUFC’s latest accounts: Turnover up, profit down.

As many of you out there will be aware, Newcastle United recently announced their figures for the year ended 30th June, 2012. This corresponds to our second season back in the Premiership which, of course, is last season.

In the last few days the accounts were finally made public thorugh Companies House, and as usual, I obtained a set there to publish online here. You can peruse these at your leisure by downloading them from the link below:

Newcastle United 2011-12 accounts.

Below is a fairly easily digestible (I hope) breakdown of those figures.

Profit.

Profit declined by 96% from £32,619,000.00 in the last set of accounts to £1,365,000.00 in the latest.

Revenue.

Total turnover is up by 5.4% from £88.5 million to £93.3 million.

Season ticket revenue is down by 3.3% from £11.8 million to £11.4 million.

Overall gate receipts are down by 12.6% from £7.1 million to £6.2 million. However, revenue from the “prawn stottie brigade” in the corporate boxes is up 7.8% from £4.2 million to £4.5 million. Other matchday receipts have leapt by 63% from £1.1 million to £1.8 million.

The biggest provider of revenue nowadays of course is TV and Media revenue. This was up 14.6% from £48.5 million to £55.6 million. Presuming we manage to avoid relegation this season, this should increase by an even higher amount next season.

Finally, commercial, catering and sponsorship revenue was down by 12.7% from £15.8 million to £13.8 million.

So, to sum all that up, season ticket, gate receipts and commercial, catering and sponsorship revenue are all down. On the other hand, corporate box, other matchday receipts and most importantly, TV and media revenue are all up, resulting in the total turnover figure rising by £4.8 million or 5.4% to £93.3 million.

Operating expenses.

Although turnover was up, operating expenses were also up by 14% from £75.2 million to £85.7 million. This was all due to a rise in wages, which are up by 20% from £53.6 million to £64.1 million. This means that the clubs wages to turnover percentage has risen from 60.6% to 68.7%. Meanwhile, other expenses remained the same at £21.6 million.

Breakdown.

To break down the figures above, this means that

26% of the club’s turnover came from matchday revenue,

60% from media revenue and finally,

14% from commercial revenue.

Though the commercial revenue is very small for a club of Newcastle United’s reach, this is largely due to the fact that the club is being used primarily as a promotional tool for Ashley’s primary business interest, Sports Direct, who don’t pay sponsorship fees to the club.

Newcastle United’s debt.

The club’s net debt as of 30th June 2012 was £129,343,000.00 (£129.34 million). This is very slightly down on the figure for the previous year, which was £130,485,000,00 (£130.48 million). £129 million of this is owed to Mike Ashley (down from £140 million in the previous accounts) as Ashley took back £11 million which was secured on future broadcasting revenue. However the club’s cash in Barclays Bank which was over £9 million is now £343,000.00 overdrawn. Ashley will be taking back a further £18 million within the next year, once again secured on future broadcastling revenue. The bulk of Ashley’s loan was to pay the debt he inherited when took over the club, passing the debt from himself to the club.

Player sales and amortisation.

Not including amortisation, Newcastle United made a profit of £6,478,000.00 on player trading, which is down over 80% on the previous year’s Andy Carroll sized profit of £32,619,000.00.

Newcastle United’s amortisation losses amounted to £12,598,000.00 (£12.6 million) during the period covered by these accounts, leaving a deficit of -£6,120,000.00.

Tax.

Due to net loss carryovers, Newcastle United have not paid any corporation tax for 3 years, just VAT and PAYE on wages.

Derek Llambias and Lee Charnley’s salaries.

It is a statutory requirement to publish the “aggregate remuneration” (total paid before tax) of Directors along with the aggregate remuneration of the highest paid director. As Newcastle United’s only directors are Derek Llambias (Managing Director) and Lee Charnley (Secretary), I think it is safe to assume that the highest paid Director is Llambias and the balance is what has been received by Charnley.

If so, this would mean that Llambias received £250,028.00 plus £15,525.00 in pension contributions for the year. This a rise of 28.1% from the previous year’s figure of £195,135.00 plus the same £15,525.00 in pension contributions. This would mean that Lee Charnley received £118,791.00 plus £4763.00 in pension contributions. This is also up, this time by 37.5% from £86,383.00 plus the same amount in pension contributions once again.

Attendances.

Average attendance at St James’ Park increased from 47,746 to 49,936, although as you can see above, both gate receipts and season ticket revenue is down.

Amount of staff.

From the young Academy players up to Alan Pardew, Newcastle United currently employ a total of 128 playing and coaching staff. This is up by four from the previous years total of 124.

94 people are employed in the club’s commercial department (up from 78), 42 in administration (up from 32). However, the club’s ground staff fell to 36 (from 48). This all adds up to 300 people (up from 282 the previous year).

The average amount of stewards employed for home games rose to 471 (from 418 the previous year).

Charitable donations.

Finally, in the period covered by these accounts, Newcastle United donated £22,600.00 to charity, which is up from the £8,970.00 in the previous year.

avatar NUFCBlog Author: workyticket workyticket has written 1034 articles on this blog.

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10 Responses to “Newcastle United’s full accounts online and broken down”

  1. 1
  2. 2

    wish i was a sheckle behind lambs arse

  3. 3
    avatar Thea says:

    I am a graduate student at George Washington University and an avid soccer fan-I have combined the two interests to compile a soccer survey!

    It is just 26 questions so its very quick.

    The questions try to get a global view of why people support the teams they do and how committed they are to their favorite team .

    Here is the link: https://www.surveymonkey.com/s/XX75JGF – thanks for helping out!

  4. 4
    avatar chuck says:

    Thats two overpaid geezers, Llambias & Charnley.
    It’s obvious they have no clue as to how to expand the brand name.
    Perhaps Ashley if he is interested in continuing with NUFC, should look at those clubs who’s earnings do reflect positively, earnings from areas other than bums in seats and pies n beer.
    Most i believe are clubs who have had success, MU, L’pool.
    On the other hand many NUFC fans, especially those overseas, are from the KK era, when Newcastle were everyones second choice team, due to a bit of success and the fact they played entertaining football.
    It has to come from a world-wide base, as Newcastle is a relatively small catchment area.
    There appears to be no policy, concerning travel to future market areas, such as Asia and the USA.
    If you are to expand the brand, you have to advertise, what better means than bringing the side to those ereas designated.
    That combined with a bit of success in both the PL and Europe, could see the number of fans from outside the UK increase.
    An association with teams in areas where football is still developing, plus a few cheap leftover shirts from SD distributed around during visits by the side may also create goodwill and an association with the club.

  5. 5
    avatar Free Scoring Smudge says:

    “Not including amortisation, Newcastle United made a profit of £6,478,000.00 on player trading, which is down over 83% on the previous year’s Andy Carroll sized profit of £36,731,000.00.”

    Not exactly. The club had a net spend of 10.7m on transfers, which is listed on the statement of cash flows (page 11 of your doc). Investments in players is considered to be capital expenditure, which means it’s not listed on the income statement (player registrations are intangible assets – see ‘acquired players’ registrations on page 12). When a player is sold for more than their ‘intangible’ value, the difference between the sales price and their book value must be recognized as income, which is where the 6,478,000 comes from. Player purchases are NOT included when calculating ‘profit on disposal of player registrations,’ so it’s misleading to state that the number represents the “profit” from player trading.

  6. 6
    avatar workyticket says:

    Millwall FC have announced that they’re going to have a minute’s violence in honour of Mrs Thatcher before their next game.

  7. 7
    avatar GS says:

    rather than their usual 2 hours of violence? They mustn’t have liked her either.

  8. 8
    avatar GS says:

    With the increase in TV money and the 5 new players we will probably be still at about 65-70% revenue spent on wages. That looks sustainable as long as we stay in the premier league. BUT, teams like Swansea and Wigan will have only a few million less than us in turnover/revenue so how do we differentiate ourselves from them?

    Ashley Money? Doubt it. From the looks of the accounts he is content for us to break even and be a big sports direct billboard.

    We need to boost the commercial revenue. Man U just sold their training ground naming rights for 100 million + for god’s sake. Hire their PR and advertising people!

    Spurs have about double our turnover. I wonder what they are doing right and we are doing wrong?

  9. 9
    avatar workyticket says:

    GS says:
    April 14, 2013 at 1:04 am

    “teams like Swansea and Wigan will have only a few million less than us in turnover/revenue”

    It’s much lower at clubs like that, GS. They don’t get as much telly money and the other stuff is, or should be far smaller by comparison. Wigan has around half the turnover of Newcastle, though Swansea seem to be going places with a cup, Europe, talk of stadium expansion etc…

  10. 10
    avatar squareball says:

    And both wigan & swans don’t pay their interns so should be saving a few quid there. irs might have something to say about that though.

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