Newcastle United in strongest ever commercial position
Newcastle United has been named as the 19th richest football club in the world according to the Deloitte Football Money League report, published yesterday.
The report tracks club finances each year, with the latest report considering finances between July 1st 2013 to June 30th 2014.
The club’s revenues are said to be a record high at £129.7 million, a 35% increase on the previous year.
Deloitte said: “Newcastle United return to the Money League in 19th place after increasing revenues by 35% to £129.7 million.
“On the pitch the Magpies endured a frustrating season; exiting both cup competitions in the early rounds, and suffering home and away defeats to arch rivals Sunderland before finally finishing in 10th place in the Premier League.
“Newcastle’s broadcast revenue, much like the other English clubs, increased significantly by £27.2 million (53%) to £78.2 million thanks to the new Premier League broadcast deals.
“This offset the loss of UEFA distributions (€5.3 million) as a result of Newcastle’s run to the quarter-final stages of the UEFA Europa League the previous season.
“Newcastle’s lack of European football in 2013/2014 resulted in four fewer home matches being played at St James’ Park, which decreased match-day revenue by 7% to £25.9 million.
“The St James’ Park average attendance of 50,688 for the Premier League season was the third highest in the division.
“Commercially, revenue increased by an impressive 50% to £25.6 million in 2013/2014. This was the first year of the controversial shirt sponsorship agreement with Wonga, as well as the continuation of long term partnerships with Puma and Thomas Cook, and the addition of online gaming brand 138.com.
“With Wonga and Thomas Cook already signed up to long term agreements, and Puma recently announcing a long term contract extension at the start of the 2014/2015 season, Newcastle United are commercially in the strongest position in their history.
“After being an ever present in the Money League until 2007/2008, the new Premier League broadcast deal has helped propel Newcastle United back into the Money League top 20 this year.
“Given the strong commercial performance of the club coupled with the Toon Army’s continuing support in their impressive numbers, Newcastle should be capable of an extended stay in the Money League in future editions.”
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