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:
Below is a fairly easily digestible (I hope) breakdown of those figures.
Profit declined by 96% from £32,619,000.00 in the last set of accounts to £1,365,000.00 in the latest.
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.
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.
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.
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.
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).
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.