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Newcastle United moves towards ‘financial stability’ as club reports fourth consecutive profit

Newcastle United Football Company Limited has reported a record profit after tax of £18.7m, up from £9.9m in 2013, for the year ending June 2014.

The club, which has reported the fourth consecutive year of recorded profit, saw an operational profit of £4.7m compared to £600k in 2013 as the Club continues to ‘outperform’ UEFA Financial Fair Play regulations.

Newcastle United reported a turnover increase of £129.7m, up from £95.9m the previous year, with matchday revenue, which includes ticket sales and hospitality, dropping slightly to £25.9m, down from £27.8m in 2013.

Season ticket renewal figures held steady, as did average Premier League attendances, which were 50,395 compared to 50,517 the previous season.

Media rights revenues accounted for £78.3m of turnover, a 53.3 per cent increase on the previous year. This reflected the new Barclays Premier League broadcasting rights deal as well as the Club’s improved league position of tenth in 2013/14, compared to 16th the season before.

The club reported strong commercial revenue growth delivering £25.6m in 2014, up from £17.1m in 2013. Newcastle United managing director Lee Charnley has attributed this 49.7 per cent increase to two lucrative new deals with the Club’s principal sponsors, Wonga and Puma.

The club’s debt continues to remain static at £129m in the form of an interest-free loan from owner Mike Ashley, with no imminent plans to repay.

Newcastle United managing director Lee Charnley said: “I am pleased to report a positive set of results which confirms the healthy financial position the Club now finds itself in and is a reflection of the prudent and measured manner in which we operate.

“The club benefits from a supportive owner and is financially stable. This gives us a strong platform from which to grow, both on and off the pitch, a result of which means, as we move forward, we are able to net spend on the playing squad and invest in other areas of the business.

“The most pleasing aspect in this set of accounts has been the growth in our commercial revenue and it has been our strongest year yet in that respect.

“With our commitment to keeping ticket prices affordable for our supporters growing our commercial income has been crucial. The deals we struck with our two main sponsors, Wonga and Puma, together with a stronger focus on our commercial operations, have helped us achieve this growth.

“We believe financial stability will deliver positive on-field results for the Club.”

This was posted in Bdaily's Members' News section by Ellen Forster .