Newcastle United have reported a 69 per cent rise in turnover for the 2010/11 season from £53.4m to £88.4m. Much of that increase came from a threefold rise in television revenues, with corporate hospitality sales also up.
The operating loss was £3.9m for the year ended June 2011 in comparison to a £33.5m loss the year before and moves the club close to a break even position ahead of Uefa’s financial fair play rules being introduced.
Newcastle United have reported a 69 per cent rise in turnover for the 2010/11 season from £53.4m to £88.4m. Much of that increase came from a threefold rise in television revenues, with corporate hospitality sales also up.
The operating loss was £3.9m for the year ended June 2011 in comparison to a £33.5m loss the year before and moves the club close to a break even position ahead of Uefa’s financial fair play rules being introduced.
The club has brought down its wages-to-turnover ratio to an acceptable level of just over 60 per cent. The club has cleared all its interest bearing debt which in 2006/7 was costing £6.5m a year to finance. Owner Mike Ashley continues to provide interest free loans totalling £140m.
The club’s net cash spend on player transfers to June 2011, which includes the sale of Andy Carroll, saw it return a profit of £5.4m. A further £25m has been spent on transfers and players’ wages since then.