Newcastle announce modest gains
By Football News
Newcastle have announced a profit of 1.4 million pounds for last year, despite outlays on players such as Papiss Cisse and Yohan Cabaye.
A fifth-place finish in last season's Premier League boosted turnover on Tyneside, pushing them into the world's top 20 revenue-generating clubs.
"After making significant strides towards meeting and exceeding UEFA's Financial Fair Play regulations last season, the club has recorded an overall profit for the second successive year," a Newcastle statement read.
"While last year's figures, which included an overall profit of 32.6m pounds, were significantly boosted by the 35m sale of Andy Carroll to Liverpool, this year's figures give a clearer indication of the club's positive performance overall with profit after player amortisation standing at 1.4m.
"The club has also re-entered the list of the world's top 20 revenue-generating clubs after increasing turnover to 93.3m – representing a 5.4 per cent increase on last year."
Commercial revenue, however, fell by 12.7 percent, while a significant increase in the club's wage bill had a huge impact on operating profit.
But, with a bumper Premier League TV deal on the horizon and a new sponsorship agreement with Wonga yet to kick in, Newcastle are confident of strengthening their financial position further.
"Commercial revenue fell by 12.7 per cent, though the latest figures do not include income from the club's new partnership deal with Wonga.
"That partnership, which is effective from the 2013-14 season, represents a significant increase on the club's previous commercial agreements.
"While operating costs have remained steady at 21.6m, operating profit is down from 13.3m to 7.5m. A key factor is an increase in the club's wage bill, which has risen by 20 percent to 64.1m following the signings of a number of key players, including Cabaye, (Sylvain) Marveaux, (Davide) Santon, (Demba) Ba and Cisse."