Newcastle United 2011 accounts now online (£32.6 million profit after Carroll sale)

Posted on March 15th, 2012 | 53 Comments |

Newcastle United crest.
Newcastle United: £32.6 million profit after player trading.
Newcastle United’s annual accounts were finally released to the public today by Companies House.

These, of course, are the accounts which cover last season, our first since being promoted back to the Premiership at the first attempt. As previously announced in a PR statement by the club’s Managing Director, Derek Llambias, operating losses before player trading fell to -£3.9 million, which is significantly down from a loss of £33.5 million for the period which covered our season in the Championship. However, the club’s overall profit after player trading was a mighty £32.6 million. This of course was due largely to one man, not Mike Ashley, or Derek Llambias, but Andy Carroll, whose sale to Liverpool FC brought in a huge £35 million to the club’s coffers. This is up from a loss of -£17.1 million in the previous year. According to the report, this profit “has been transferred to the club’s reserves.”

Newcastle United debt

On the matter of the club’s debts the report and financial statements reports:

“The overall level of net debt (including shareholder support loans and net of cash) has fallen from £150 million to £130.5 million.”

Basically, this figure is a £140 million pound debt to the club’s owner, Mr. M.J.W. Ashley, minus a positive bank cash balance of £9.5 million. This is still significantly higher than it was when Mr. Ashley took over the club in 2007, when it was around £70 million. However, this £70 million figure did not include the mortgage on the ground which had to be paid off, which took the true level of debt to around £124 million.

Some other points of interest

Interestingly, although revenues from things such as TV revenues and corporete hospitality from the glory hunting “Prawn stotty brigade” rose significantly for one obvious reason (Promotion to the Premiership), other revenue streams were “relatively flat” to use the words of the report. These included such things as season ticket revenue, gate receipts, commercial, catering and sponsorship revenue. On this the report stated:

“Commercial turnover was relatively flat compared with the Championship season and it remains a potential growth area and the club will be working over the next few years to grow this revenue stream.”

Of course, you can see all these figures in detail by following the link below and reading the club’s audited accounts.

I may or may not write some kind of opinion piece or more in depth commentary about the accounts in the fullness of time, but for the moment I will just put the accounts themselves up for the perusal of all you budding accountants out there.

Link to Newcastle United accounts, 2011

Newcastle United accounts, 2011 (PDF).

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NUFCBlog Author: workyticket workyticket has written 1096 articles on this blog.

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53 Responses

  2. Well done WT only just logged on to www so havent yet had time to disseminate the details.

    However “Commercial turnover was relatively flat compared with the Championship season and it remains a potential growth area and the club will be working over the next few years to grow this revenue stream.”

    when translated means

    “Whatever happens to the team – as long as its playing stylish, attractive football at home, you’ll get bums on seats. Otherwise expect 32,000 against Bolton and Stoke !!!!!”

  3. Nice one worky.

    Notice the name of the ground (address)?
    ;)

    Andy,
    i think it means fans have stopped buying so much inside the ground, so there’s a lot of potential for that revenue to rise, mate.

  4. AndyMac says:
    March 15, 2012 at 9:26 pm

    “However “Commercial turnover was relatively flat compared with the Championship season and it remains a potential growth area and the club will be working over the next few years to grow this revenue stream.”

    when translated means”

    We’re going to sell the naming rights for the team for £10 million. In the meantime, as a “showcase,” it will be known henceforth as “Sports Direct United.” :-)

    Thanks Andy.

    ps: and you, Clint.

  5. Also on a slightly separate note with both Manc teams heading out of Europe, its just a matter of time Bluenoses, now is the time to consider how far the BPL has plunged in terms of quality and skill levels while still attracting players with high wages but little motivation.

    Time for Scudamore and his fat cat twat brethren to stop swannying around Doha and start rattling a few cages. After all if the BPL loses its appeal then Sky’s money disappears as well – then how would the Rooneys of this world get their hair planted ???

    http://www.redcafe.net/f6/rooneys-hair-transplant-photoshop-331831/

  8. CLiNT FLiCK says:
    March 15, 2012 at 9:35 pm

    “Andy,
    i think it means fans have stopped buying so much inside the ground,”

    It means they’re still buying the same, or even slightly more, but not alot more since we were promoted.

    It also means that commercial revenue streams from sponsorship are also pretty static because the stadium is already chocka with free Sports Direct advertising, so there isn’t any room for much else. ;-)

  10. worky,

    there has been a distinct slice of fans that have withheld their usual spend from inside the ground though, hey?

    Not disagreeing with your points though.

    The commercials being a case in point.

  11. We’re struggling to reach anywhere near the t/o figures of the top six and thats not because we dont do good pies. It’s down to the product on the pitch.

    Team Country Rev9/10 Rev9/10
    Liverpool UK 225.3 217
    Internazionale Italy 224.8 196.5
    Juventus Italy 205 203.2
    Manchester City UK 152.8 102.2
    Tottenham HotspurUK 146.3 132.7

    Ask yourself how many games, in the Pardwho era at SJP, can you HONESTLY SAY THAT BEEN ENTERTAINED ???

  12. Team Country Rev9/10 Rev8/9

    “can you HONESTLY SAY THAT (YOU’VE) BEEN ENTERTAINED ???

    Must stop licking these toads :)

  14. Peter Beardsley says : “We have got a brilliant owner, a brilliant managing director, a brilliant manager”

    = incontravertable proof that I know absolutely nothing about football.

  16. Uefa co-efficients – just can’t get enough of them!
    So no point in gloating over the manu & manc results then.

  19. Soz to WT for hijacking the “Fatman gets it right(ish)” thread by demonstrating the way forward is to sell players at exhorbitant prices and then remind them they should play shlte for their new employees for the length of their contract !

  20. AndyMac says:
    March 15, 2012 at 11:50 pm

    “Soz to WT for hijacking the “Fatman gets it right(ish)” thread”

    Fatman gets it right(ish) thread? Are you being serious? Please answer “No.” ;-)

    Don’t get me wrong, “Fat” Freddy Shepherd and Douglas “Weaselface” Hall were awful. Their buying policy was lousy, they trousered millions from the club’s coffers. They were a textbook example of how not to run a football club and have been savaged for allegedly almost leading the club into administration with a debt of £70 million, or even £128 million if you include the SJP mortgage.

    However, with Ashley in charge, the debt is now £140 million, either the club, or the next buyer of the club will have to pay Ashley back for his mistake in not doing due diligence before he purchased it, it is one big, free advertising hoarding for Sports Direct, it has lost the name of it’s historic home, it has been relegated, it has been an even bigger laughing stock than it was under Fat Freddy, no manager of any real calibre will manage it. And yet, Ashley is been hailed as a genius for reducing the club’s operating losses to £3.9 million for one year and selling a player who was aquired under the Shepherd regime for £35 million pounds.

    Sweet Jesus, Mary and Joseph! Is anyone ever going to get it? Are Geordies really so naive in the face of such obvious PR crap? (I exclude myself from that, of course) :-)

    If Mike Ashley were to say “There’s one born every minute” (which he probably does, regularly), he would certainly be right!

  21. I’m sure the Carroll money was an eye opener and only increased Ashleys belief that he has it covered and can make money every year on player sales.
    The retailers mantra buy cheap sell for as much as the market will bear, after all players value is really a matter of perception.
    Which leads me to believe he is right in regard to selling Tiote.
    Why ?
    Well if we got him for, what was it? less than 5m, obviously not many rated him.
    And they are right, the guy is one dimensional, sure great stopper, but thats it!
    One guy had the nerve (or Stupidity) to compare him to Roy Keane, let me tell you he’s no Roy Kean, who was the engine room that drove Man U., a guy that could do it all.
    Cabaye is a much better player than Tiote, who can also do it all and i would be concerned if he were on the block.
    I would be very surprised if we sell Tiote (thats if we do) for more than 10m, but then again it’s all about perception.
    And i believe the two footballing experts Derick and Mike think they have got a windfall coming, with the twin sale of Tiote and Ba.
    And i cant argue with that logic, if you can get big bucks for a one dimensional DM and a CF who could blow out his knee at any time, go for it.
    The combined fee may bankroll bringing in some younger, hopefully better and of course cheaper replacements.
    One or two who may make an impression and in turn be sold down the road.
    An assembly line so to speak.
    Some fans will be upset, were it to happen, but the side is still a work in progress and by no means the finished product, though i can recall Ashley mentioning a five year plan, when he first took over.
    Guess he has realized by now what he did’nt know then and the fact he is still on a learning curve.
    I think it will be an interesting summer, not just for NUFC but for a number of PL sides, with serious investments made in players.
    The question remains, what does Ashley have in mind, making money or attempting to put to-gether a competitive side ?
    Possibly thinks he can do both, yeah sure !

  22. Say we got 15m. for the combined sale of Ba & Tiote, who could we then bring in ?
    Of course first and foremost we need defensive help.
    Hopefully a CD and perhaps two full backs.
    Of course it would be nice to get players who are versitile and can play in more than one spot across the back four.
    That is two RB’s on the premis we may lose Simpson, which would bring in a few more bucks.
    I’m gonna bore you with my continal touting of Hoilett who could fit in as a second striker or winger, we already have one attacking Midfielder in Amalfitano, which would make it five in.
    Then Llambias has already stated we are likely to have a smaller squad, which could mean the speculation of a clearout is for real.
    Which in turn would generate more funds not only in sales, but in getting high salaried players off the books and in turn have more funds to finance “quality” replacements.
    I mean this particular blog is centered on beancounting,
    innit ?
    We live in interesting times !

  23. We live in interesting times ! – true chuck
    – which is why turn to football to keep us happy through the night, and put up with so much crap from our brilliant owner, brilliant managing director, and brilliant manager

  24. Big Clubs? I knew I had seen somewhere NUFC rated about 8th, here it is:

    A historical ranking of football clubs competing in England since organised competitive football began on a nationwide basis with the inaugural FA Cup in the 1871-72 season. Updated to: end of 2010-2011 season.

    Rank Club Points

    1 Liverpool 557
    2 Manchester United 529
    3 Arsenal 420
    4 Aston Villa 361
    5 Everton 353
    6 Chelsea 287
    7 Tottenham Hotspur 285
    8 Newcastle United 282
    9 Sunderland 277
    10 Manchester City 276
    11 Blackburn Rovers 251
    12 Shefield Wednesday 242
    13 Wolverhampton Wanderers 241
    14 West Bromwich Albion 235
    15 Nottingham Forest 234
    16 Derby County 212
    17 Bolton Wanderers 206
    18 Sheffield United 200
    19 Leeds United 199
    20 Birmingham City 180

    Points awarded as follows:

    Champions Cup Win +15
    Other European Trophy Win +10
    League Championship +10
    FA Cup Win +6
    League Cup Win +3
    Second Level Division Win +3
    Lower Division Win +1
    Season in top division +2
    Season in 2nd division +1
    Bonuses: Super Cup; Club Cup; Double +1

    from
    http://www.aboutaball.co.uk/aboutaball-historical-football-rankings/historical-ranking-of-english-football-clubs

  25. And I see no chance of improving on this record – we have a setup geared for perpetual 8th – mid-table with ( I hope) the odd cup run, selling our top players and deluding ourselves that we can compete with the top clubs!

  26. And if you compare that all-time top 10 with the current PL top 10 it is basicaly the same – the only difference is Villa who are having a poor season.

    I Have said since xmas we will finish 7th-8th – and I think over the next 5 years we will average 7th-8th.

    If we want to sit near the front to get a good view of the show then we will have to buy expensive tickets – ie £20+ for top players, just like the top 5 are about to do (again).
    We are going to sit about 8 rows back – I just hope the fat woman in front or us dosn’t wear a big hat!

  31. Worth pointing out perhaps that Llambias’ salary was £195k and £15k pension contributions and Charnley got £90k and £5k pension contributions.

  32. Other points to note, there was nor will be any payment for the Sports Direct advertising, certainly up to 30.06.2011. I’d assume that sets a precedent for the ground naming not to be paid for either. (Note 23).

    Looking at post balance sheet events (note 24), I would say the only transfer of note not included in the figures of 8.5m purchases and 7.5m sales is that of Cisse. Ba was a June transfer and his signing on fee/agents fees are all included in these accounts.

    On a technical point, I’d also say Worky’s analysis of the increased debt is wrong – anyone who wanted to buy the club before Ashley took it into private ownership from the plc would have had to do what he did and buy the shares as well as take on the debt, so the debt has gone up a bit but that’s effectively irrelevant.

  33. Some of the tweets sent to Danny Simpson after the Arsenal game.

    @CallumBryce11 wrote: “You my friend are the worst right back in the world,yoy and mike williamson should be shot with s**t!!”

    @sav89 wrote: “ur a helmet”

    @Jaynufc11 wrote:”We wud of got a draw if you decided to cross the ball or eve throw it to a NUFC player u wankr”

    What kind of trash are supporting NUFC now? I was at the game on Monday evening and I almost got into a fight with a couple of NUFC supporting pricks when they tried to stop me going back to my seat for the second half.

  34. Simon says:

    March 16, 2012 at 2:57 pm

    “On a technical point, I’d also say Worky’s analysis of the increased debt is wrong – anyone who wanted to buy the club before Ashley took it into private ownership from the plc would have had to do what he did and buy the shares as well as take on the debt, so the debt has gone up a bit but that’s effectively irrelevant.”

    Thanks for the input Simon, but I’m afraid that doesn’t explain at all why £140 million worth of debt is “effectively irrelevant,” or for that matter why Ashley and Llambias have been trying to mislead fans about it for several years now.

  35. Worky, those two men trying to stop you going back to your seat were stewards. You were pissed, a hint, geordies don’t wear pink or yellow fluorescent jackets to a football game.

    I know its been a while worky. ;:-()—+

  36. It’s technically irrelevant only from a buying the club point of view. If you wanted to buy club at the time Ashley did, you’d have had to pay the £133m he paid for the shares, and you’d have been left with say, £125m of debt. Now, the shares are all his and are (on paper), worthless because he’s the major creditor propping up the club with the £140m owed to him.

    Anyone wanting to buy it now would have to negotiate a price, but clearly that price would take into account the £140m owed to him. So a buyer now would offer, say, £100m for the club (yeah right) and then another £140m to pay off the debt to Ashley.

    I absolutely agree with you about the misleading people about it, but communication/discussion/trust is hardly his strong suit. See also paying Llambias £200k a year (nice work if you can get it) and not paying for the subtle SD adverts.

  37. If he’d just said ‘I’ve paid the mortgage and other debts off to save interest and help make the club profitable, by way of an interest free loan which I’ll take out again when it’s sensible to do so’, it would have been much easier than getting Llambias to keep rattling on about how much his boss has put into the club.

  38. Look guys, y’all may thimk football is aboot winning, y’kna having a good side like, etc.
    It certainly was back in the day.
    But only the oligarchs can afford to have that mindset to-day.
    We all know it’s really about money.
    Do the Glazers, the Fenway group, wor Mike ? care about anything other than making a buck out of he club ?
    Sure they would all like to have winning sides, for both ego reasons, but primarily due to the fact winning teams earn more in general.
    The EPL is fortunate to be the prime benefactors of Murdochs tv money and to be honest the providers of a product (a fast paced and a more physical game) that is both entertaining and available throughout the globe.
    Even though being threatened by a more modern and more technical Spanish version,now being played.
    Were that to be threatened by the formation of a super league or a provider (ESPN etc.)with more muscle.
    What would be the outcome ?
    This situation does not go un-noticed by other european leagues and their owners and if it continues (EPL sides culling their top talents, both managerial and players)something will have to be done.
    Those presently running things (EPL and FA people)have to be on their toes, with a vison of where they want to be, years down the road.
    I’m afraid i dont see that, right now, but i do read about some putting their foot in their mouths and having to apologise afterwards.
    Seems like a good old boy club, rather than a group of visionaries, with a plan for the future of football in the UK.
    Which could result in another breakaway taking place, by the owners, (with the precedent being the EPL) fed up with a moribund bunch of “if theirs nowt wrong with it what’s to fix” idiots.
    And with the discussing of the finances of this club NUFC, where and how would that leave this club. ?

  39. Simon says:
    March 16, 2012 at 3:32 pm

    “Anyone wanting to buy it now would have to negotiate a price, but clearly that price would take into account the £140m owed to him. So a buyer now would offer, say, £100m for the club (yeah right) and then another £140m to pay off the debt to Ashley.

    I absolutely agree with you about the misleading people about it, but communication/discussion/trust is hardly his strong suit. See also paying Llambias £200k a year (nice work if you can get it) and not paying for the subtle SD adverts.”

    Exactly Simon. Don’t get me wrong, I do understand how it works, I do understand that Ashley’s interest free loan is pretty much standard practice, and also that we were in trouble with the kind of leveraged and high interest debt we had under Shepherd, a truly awful custodian along with Dougie Hall. But, as you point out yourself, it IS still relevant, not only from a buying the club point of view, but also from an if current circumstances change point of view.

    However, it’s the constant BS, this constant raising of the spectre of Shepherd to justify everything and worst of all, this ridiculous charade about the stadium renaming. Do you remember when he made alot of fans beleive that he wouldn’t be taking back any of the money he had put into the club, when what he really meant was that he would be deferring the repayment of one smaller loan for the season we were relegated? A loan which was secured against future broadcasting revenue which we wouldn’t get in the lower division anyway.

    Sometimes, Ashley and Llambias lie even when they don’t have to, just for the hell of it and it gets my goat, especially so because everyone seems to beleive it merely because we had a run of eleven good games at the beginning of the season. I used to defend Ashley in his earlier days, and I do believe that he’s had the right emphasis in some areas but he always seems to find a way to ruin it. As a fan, if we have a good run of games, instead of being delighted as I should be, I’m worried that Ashley is going to use it once again as a pretence for the further Sports Directification of NUFC, something which will reap enormous benefits for SDI to the detriment of Newcastle United, and it’s “brand”. Sports Direct will always be Mike Ashley’s primary concern, even when it is to the detriment of his secondary one.

    As I’ve written several times before, both he and Llambias are complete hucksters who can never be trusted.

  40. Stephen C says:
    March 16, 2012 at 3:25 pm

    “Worky, those two men trying to stop you going back to your seat were stewards. You were pissed, a hint, geordies don’t wear pink or yellow fluorescent jackets to a football game.”

    Of course, I know you’re joking but I thought that the stewards were great, Stephen. I stood right through the game just as everyone else did in our end. I preferred them to the SJP fluoro-nazis.

  41. its different at away games worky.

    they would need to take names of every one standing and write to the club if they were to tackle away fans standing.

    at home its a different matter. they check the cctv of the seat, take down the season ticket number and ban them for life. its as easy as that.

    last season i was at the spurs game. talk about nazis. i couldnt see the game because stewards were constantly telling people to sit down. there was around ten stewards constantly telling people to sit down in the first 3 or 4 rows of the upper tier, which meant any one shorter than 6 foot and sat from row 5 backwards they couldn’t see for 6 foot 10 stewards getting in the way.

    not sure what it was like this season as i didnt go into the game. i still did my die hard coach duties regardless though

  42. Worky ticket spot on we are just being taken for mugs. The more money we pour in the more bricks in the wall of his Totteridge mansion. The blokes laughing all the way to the bank!!!

  43. Stephen C says:
    March 16, 2012 at 3:25 pm

    “Worky, those two men trying to stop you going back to your seat were stewards. You were pissed, a hint, geordies don’t wear pink or yellow fluorescent jackets to a football game.”

    :-)

  44. Worky did you fork out for a membership? When we were up / down in Scunny in the cup I wasn’t going to pay the extra 50 quid for the two of us who went. Think it may even have gone up in price since then.

  45. Jimbob says:
    March 16, 2012 at 8:08 pm

    “Worky did you fork out for a membership?”

    Stephen (C) got ’em for this one, Jimbob, and there were six of us who met up; Clint, myself, my Arsenal supporting friend, hoosiertoon, his American friend and Stephen himself. The membership is still £25.

  46. its £25 now jimbob.

    and the trick is if you dont want to buy a membership.
    find someone who has a season ticket and is willing to the tickets on your behalf.

    that way you get the ticket without having to purchase membership and they get the extra loyalty point towards future games.

  47. Worky / Stephen, cheers lads.

    Hope you’s had a good one. Shame bout the end. Not many Yorkshire based games in the Prem, but on the plus side it’s not too expensive to get up to St James’ so hopefully I’ll scrape enough together to catch another game before the seasons end.

  48. Bob says:
    March 16, 2012 at 5:38 pm

    “Worky ticket spot on we are just being taken for mugs. The more money we pour in the more bricks in the wall of his Totteridge mansion.”

    Bob, we’re here to promote Ashley’s primary interest, Sports Direct, to a worldwide audience. If it works and he cracks the emerging Asian market, it could eventually make him and the minority shareholders in SDI far more than our beloved club is worth in it’s entirety.

  49. A modern day Hamlet, in quiet desperation, to himself:
    “Without an extremely eccentric billionaire who should wake up one day and discover that he bleeds black and white, and profusely, how on God’s green Earth are we ever to be expected to be a title chasing, cup-winning team? THAT is the question…”

    Worky?

  50. jimbob

    although there isn’t many games in Yorkshire there are quite a few in Lancashire which if my biology is correct is within reach of yourself?

  52. Stephen your chemistry is spot on mate :-)
    Blackburn and Bolton are not too far away. Just find a struggle to find time. When we were in the championship there were loads of local games at Sheffield, Nottingham, Leister etc. I just see this memberships thing a bit of a con. I also do not know any season ticket holders. I have always admired people like yourself who travel up and down the country to follow us, just for me at the moment it is just not feasible unfortunately.

  53. The reason commercial income is down quite a bit from Shepherd’s days is the club now contract out their catering so it doesn’t show up, before it was bringing in around £7 million a year but costing around the same in outgoings so the club washed their hands with it.

    It was too little reward for the effort being put in.