Newcastle United are the latest Premier League club to report a profit for the 2012-13 season, £18.7m up from £9,9m in the previous financial year. This is the fourth consecutive year in which the club has made a profit.
As far as fans are concerned, this profit has not been reflected on the pitch with a thin squad and insufficient acquistions of new players. The club is £129m in debt to owner Mike Ashley.
Newcastle United are the latest Premier League club to report a profit for the 2012-13 season, £18.7m up from £9,9m in the previous financial year. This is the fourth consecutive year in which the club has made a profit.
As far as fans are concerned, this profit has not been reflected on the pitch with a thin squad and insufficient acquistions of new players. The club is £129m in debt to owner Mike Ashley.
The importance of media revenues, largely broadcast income, is shown by the fact that at £78.3m they accounted for 60 per cent of revenues. These revenues increased by 53.3 per cent compared with the previous season.
Commercial revenue was up from £17.1m to £25.6m, largely reflecting new deals with the club’s main sponsors, Wonga and Puma. Matchday revenue was down by £1.9m, but this in large part reflected that the club had been in the Europa League in the preceding season and had played seven extra matches.
Some suspicion has been aroused by the fact that, despite a large increase in turnover, there has not been a corresponding increase in profit. There has been an unexplained increase in operating costs, although these are not a full set of accounts.