Newcastle Utd Posts Turnover Increase
Newcastle United has revealed an operating profit of £7.5 million last season, down from £13.3 million the year before, but a fifth-place finish helped the club to a turnover increase of 5.4% to £93.3 million.
The results see the northeast club, who face Benfica in the quarter-final of the Europa League next week, re-enter the world’s top 20 clubs by turnover.
Covering the year ending June 2012, it is the second successive year the Barclays Premier League club has turned a profit.
Following an influx of new signings, spending on wages rose by 20% to £64.1 million with arrivals including Yohan Cabaye, Sylvain Marveaux, Davide Santon, Demba Ba and Papiss Cisse – resulting in a wages-to-turnover ratio of 68.7%, up 8.1% from the year before.
Commercial revenues at St James’ Park fell by 12.7%, though the latest figures do not include income from a new sponsorship deal with loan company Wonga.
The club performed better than many expected last season, with results boosting television income by 14.6%. Those revenues will also be expected to increase further with improved broadcast rights agreements for next season.
Meanwhile, average attendances at St James’ Park rose to 49,936 – an increase of 2,190 – but ticket revenue fell by 7% after the club froze season ticket prices.
The latest results put the Magpies in a strong position to meet UEFA’s incoming Financial Fair Play regulations, designed to make clubs pay their bills and only spend what they earn, from the 2014/15 season.
