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Just a quick thread on the Newcastle financials to understand what the new ownership is coming into
THREAD
THREAD
The latest available accounts cover the 17/18 season, as Mike Ashley has yet to publish for 18/19
https://beta.companieshouse.gov.uk/company/00031014/filing-history
https://beta.companieshouse.gov.uk/company/00031014/filing-history
Total revenue for 17/18 was just over £178 million
The breakdown is as follows:
The breakdown is as follows:
Looking to 18/19, we can make a few assumptions to get us to a projection for total revenue
Matchday: Same figure
Broadcasting: Figure available
Commercial: 3% increase
Matchday: Same figure
Broadcasting: Figure available
Commercial: 3% increase
This gets us to a projected total revenue figure of £171.6 million for 18/19
Broken down as following:
Matchday: 23,937
Broadcasting: 120,130
Commercial: 27,505
Broken down as following:
Matchday: 23,937
Broadcasting: 120,130
Commercial: 27,505
The 18/19 bottom line profit will be down from Covid but otherwise the same
The club's net spend of £7.5 million will register a large profit on sale of registrations (Mitrovic) while adding roughly £10-13 million in amortization from new contracts
The club's net spend of £7.5 million will register a large profit on sale of registrations (Mitrovic) while adding roughly £10-13 million in amortization from new contracts
Here is the amortization schedule as of the end of 17/18
It appears that most players are on 3-4 year contracts
Five year contracts likely not feasible for clubs with relegation risk, even with relegation clauses included
It appears that most players are on 3-4 year contracts
Five year contracts likely not feasible for clubs with relegation risk, even with relegation clauses included
Speaking of Covid-19, let's look at the impact
Starting with matchday, @NUFC have hosted 14 league & 3 cup matches in 19/20... down from 21 matches in 17/18
At 23,937 million in total matchday, we can project an EPL match to be worth £1.2 mil, and cup matches to be worth £600k
Starting with matchday, @NUFC have hosted 14 league & 3 cup matches in 19/20... down from 21 matches in 17/18
At 23,937 million in total matchday, we can project an EPL match to be worth £1.2 mil, and cup matches to be worth £600k
5 PL matches behind closed doors & 1 missed FA Cup quarterfinal v Man City results in a loss of:
5(1.2) + 1(1) = £7 million
Commercial contracts also offer guarantees of visibility at the stadium and on advertising boards, so it's likely there will be a loss in revenue here
5(1.2) + 1(1) = £7 million
Commercial contracts also offer guarantees of visibility at the stadium and on advertising boards, so it's likely there will be a loss in revenue here
Looking ahead, Mike Ashley's strict running of the club will afford the new owners a bit of wiggle room before taking on losses to build the squad
That's a wages-to-turnover ratio of just 52%
That's a wages-to-turnover ratio of just 52%
Final point
I'm going to continue to harp on those that say PIF will not be able to match the rise of Man City/PSG
This summer, all bets are off
A depressed market combined with an ownership group that is willing to spend
Look at Atletico last yr... https://twitter.com/brett_hartmann1/status/1253352830884249600
I'm going to continue to harp on those that say PIF will not be able to match the rise of Man City/PSG
This summer, all bets are off
A depressed market combined with an ownership group that is willing to spend
Look at Atletico last yr... https://twitter.com/brett_hartmann1/status/1253352830884249600
