Newcastle United’s commercial revenue is only half what it should be

Posted on October 2nd, 2013 | 57 Comments |

Sports Direct signs at SJP.
Sports Direct: Only using ‘unused’ advertising space.
Inspired by members of the NUFC board saying Sports Direct only takes up unused advertising space at SJP, as well as Newcastle United’s lousy commercial revenue figures, I decided to do a little number crunching and research.

Referring to figures from other clubs using Deloitte’s “Annual Review of Football Finance” and all the other sources I could find, as well as looking at other revenue streams for the club using the club’s last published accounts. I estimate that as per Newcastle United’s last published accounts (for the 2011-12 season), the club is only getting just over half the commercial revenue it should be.

According to my research, if Newcastle United were an average Premier League club with around 27% of the club’s revenue coming from commercial sources such as shirt sales and sponsorship, we should be getting around £25 million per season in total when we are actually only getting only a paltry £13.8 million. Having written that, with the third highest average attendances in the Premier League, some might say that these figures could be skewed somewhat as Newcastle United might be expected to get a higher percentage than normal from matchday revenue. However, they were exactly the same as the average for the whole Premier League, around £21.5 million of £93.3 million, or 23% of total turnover.

This leaves Newcastle United even more dependent than other clubs on revenue from broadcasting revenue. On average, Premier League clubs receive 50% of all their income from Premier League broadcasting rights, though at Newcastle United it is a huge 59.6%. Of course, this is also expected to rise even higher this season with the huge 70% increase in broadcasting rights payments over the next three years. Of all the top twenty richest clubs in term of turnover (where we are now 20th), Newcastle United were the second most reliant on broadcasting revenue, just behind Internazionale. With the above mentioned increase in broadcasting revenue, Newcastle will probably become THE most dependent, but we’ll see.

The club have stated in the past that the commercial revenue figures are indeed “disapointing,” but have recently stated that all of that will change when the Wonga sponsorship money kicks in. This is hard to see though if the club are only receiving around £6 million per season for shirt sponsorship and £1.5 million for Academy sponsorship, a figure which previous Managing Director Derek Llambias confirmed as being “not far off” before he left. As I have mentioned already in a previous piece on my own blog, this is roughly around the average of all Premier League shirt deals (£7.36 million).

Despite what the club say, the amount of Sports Direct advertising at St James’ Park is just so extensive, there wouldn’t be much left if it were all taken away, and it’s hard to believe that a club like Newcastle United has such a problem attracting real advertisers. If they are, there’s something seriously wrong.

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Mike Williamson.
Iron Mike.
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Has Mike Williamson earned the right to a starting place?.”




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57 Responses

  1. if all that space is unused as the club claims, then im the pope lol,what they really mean to say is the club wont sell that space cause, fatboy wants it to advertise his tatty shop

  2. The trouble is that Newcastle in current climate is not an attractive proposition to companies – coupled with the fact we have some of the lowest ticket prices in the league means we’ll always struggle to get anywhere near the more attractive teams and be more and more reliant on TV money

  3. The whole thing comes back to Ashley making himself a pariah, In Football circles.
    Personally, I think ever since the “Keegangate” scandal, And some of Ashley’s other actions, Have tainted the brand of this club.
    No one decent in Football or Commerce will have anything to do with Ashley, And we will remain an unpopular choice, Until this parasite decides to leave!

  4. stevep says:
    October 3, 2013 at 10:16 am

    “coupled with the fact we have some of the lowest ticket prices in the league”

    Steve, I looked at the tickets prices across the league for a story I never published.

    As with most things at Newcastle United nowadays, it isn’t quite what it seems. What Newcastle has is a few very cheap bairn’s tickets. That is what was used for that story which said that Newcastle United offered the cheapest Premier League day out with a ticket, a programme and a cuppa or whatever it was. For most average fans though, it isn’t the one of the cheapest at all.

    October 2, 2013 at 9:11 pm

    “if all that space is unused as the club claims, then im the pope lol.”

    Even if you don’t go to SJP and get your eyes frazzled by all those flashing red white and blue signs, you just have to take one look at tbat photo above to know they’re taking the piss out of our intelligence again!

    This ‘showcase’ idea is pure crap. All those Sports Direct signs are going to do is put advertisers off, not attract them. No classy advertisers would want to be in the middle of all that market stall vulgarity.

  6. joe hawkins says:
    October 3, 2013 at 10:58 am

    “No one decent in Football or Commerce will have anything to do with Ashley”

    Liverpool did. They gave him over £40 million for Carroll and Enrique and look at what they got in return, Llambias bragging to a load of complete strangers in a bar about how he and Ashley mugged them and made fools out of them, all laid out in the pages of one if the UK’s most popular newspapers.

    Then there were the managers he derided to the same people, Keegan, Shearer, Hughton etc.

    If you were another big club who wanted to buy a top player, or a prospective manager or sponsor, would you fancy some of that?

    I wonder why Ashley’s plan of buying cut price continentals and selling them on for top dollar has gone so astray. :lol:

    As for Pardew, it could well be the start of the endgame for him.

  7. So, I got into a big fight with my girl last night. Google Maps had stored stuff in their cloud saying I had been to Chicago’s Art Institute many times in the last few months. I hadn’t, because I am a Neanderthal anyway.

    She thought I was cheating on her. I wasn’t (but the trust thing is a different story).

    And…I just almost had a cyber break-up.

    Pardew OUT.

  8. Worky, Ashley is a fool to himself, I cannot understand why he continually alienates people.
    He has gone out of his way to drive his clientele away, ie the fans.

    He tries to play hardball with football clubs, Over potential targets, He has more or less ruined the reputation of the club in France.

    He has p****ed the LMA off something terrible over the handling of what happened to Keegan.

    Banned countless Journalists from the Stadium, Because they dare to disagree with him.

    Treated a club legend in Alan Shearer, Like absolute s**t, And got rid of John Beresford, For him questioning his lack of investment.

    Ruined the reputation of the club in England, Through his actions.
    Letting his M.D run his mouth off about in a drunken bar stool rant, And insulting a top Premiership club, And more or less saying they take liberties, And are horrible people!

    He has more or less done for himself in Association Football, One day he might need a favour, And there will be no one there to help him.,
    He is a complete idiot, And i haven’t the faintest idea, Of where he’s coming from.
    You would think someone with a bit of sense, Would tell him, He is on the “Highway To Hell”, With his chosen path!

  9. @ stevep 2
    we talking about a team whos matchs are seen round the world, dint be giving me any spile that space could not be sold that is if fatboy did not want it

  10. As far as cheap tickets are concerned, on my visits to St. James’ Park I have always paid over forty quid for my seat.
    Nice seat, state of the art stadium, but not cheap.

    I have written many times about the mismanagement of this club, from day one when Ashley hired the London,
    Lawyer/moneyman Chris. Mort, who knew less about football that Ashley.

    Who on realizing this, quickly fcuged off back to familiar territory, Canary Wharf or Threadneedle St.

    Since then things have steadily gone downhill, hiring a series of cheap clowns, some of which knew less than himself (Ashley) about anything.

    Being sleaze is his business, obviously he only associates with sleazy characters and businesses.

    Plus he chisels his own club, by using space to advertise his other company.
    Something that doesn’t show up on the balance sheet or is taxed.

    But in general he remains the same small minded pennypincher, who, if he were smart would have hired not dumbass nobodies, who’s only positive is they come cheap, but people with ideas and knowhow, to expand the brand name and become more profitable.

    Attendance, broadcasting, sponsorships, player trades,
    club merchandise sales.
    All lagging the top and even average PL sides.

    Why ?
    Llambias, Kinnere, Pardew etc.

    Then compare the General managers at those clubs who generate high revenue with who we have, it becomes obvious.

    And of course, with the recent divulgence that mid level mediocrity is acceptable, only proves Ashley doesn’t get it.

    If you look at the sides who have a worldwide following, you will notice the one thing they have in common, is they have won things over the last decade or two.

    Success is a big factor in regard to following ergo shirt sales, brand name recognition etc.

    No one wants to wear the shirt of a looser, especially when it advertises a Loanshark operation.

    My point, Ashley should sit down with both a reputable
    Finance organization (yeah I know sounds like an oxymoron) and figure out how to best manage this club, now and into the future.

    Because Joe Kinnear is certainly not the answer, or any of the other cheapass hirings.

    That’s of course if he wants to project the side into a money making and worldwide recognizable club, who’s price could increase along with profit’s.
    Unfortunately it wont work any better than now if we don’t reorganize, but remain this struggling looser of a club.

  11. Interesting article in regard to the new “fair play” rule.

    Apparently the lawyer who handled the Bosman case back more than a decade ago, is about to challenge Uefa’s ruling.

    By claiming it contravenes the fair trade laws, being that football does not exist in a vacuum and it therefor inhibits clubs rights as a moneymaking entities, no different from any other business, who are entitled to operate as they please in order to be successful.

    No matter how one feels about this there are implications that could lead to serious problems within the organization.

    Restrictions in spending could reduce the popularity and abilities of EPL sides, who presently dominate the broadcasting spectrum.

    In order to meet some idyllic concept of parity among the countries involved.

    Which could create all kinds of problems, some of which we may be unaware of.

    I for one disagree with this kind of tampering, by petty bureaucrat’s who have some kind of axe to grind, because this ruling has an agenda, that you can be sure of.

    However I see no real reason to change to a system that could cause enforced not necessary improved restrictions on football as we know it.

    If it’s not broken, why fix it, especially when we see wealthy clubs like Man. U. being challenged and beaten by smaller clubs and more parity than we have seen for some time, leave it alone.

  12. I assume everyone saw the piece at the themag about the club refusing to even negotiate over selling the SD ad space. A blogger over there made contact about paying to advertise SBR’s charity. The club wanted no part of it-not even a bid.

    stevep @ 2 says:

    “more attractive teams”

    Like Fulham and Swansea?

  13. TAE @ 11: well that’s probably debatable. But I think worky can tell you exactly how much SD’s share price has risen since MA took over…

    October 3, 2013 at 7:35 pm

    “<<<<<<, wonders how much his tatty shop has made from that advertiseing" It's very hard to say Toon, but when Ashley was gobbling up the NUFC shares and taking over from the Halls and Fat Freddy, Sports Direct shares were hovering around 120-130p, now they are worth around 700p. That's billions. It's hard to think all those Sports Direct signs going out all over the country, and the world, haven't made a bit of a contribution. Ashley wants the club to stand on it own feet though, and apart from all the loans which have to be paid back, as you Yanks say, he won't put one thin dime into the club other than the £140 million or so he paid for it. As we cockneys say, he's a complete and utter 'Jeremy Hunt.'

  15. worky-the loans he put into the club were for his own benefit as well as I’m sure you know. And sure-stand on your own feet. But you can’t sell any signage. That’s reserved for SD. For free.

  16. tunyc, he hasn’t paid any tax at Newcastle United for years, I can’t even remember if he’s paid any. He’s hobbled the club, then asked it to stand on it’s own two feet. I would call him a parasite, however that would be too insulting to parasites.

  17. Checked out what some are saying on various blogs, it ain’t good and Pardew should be worried, as it possibly appears like deja vue all over again for him (you name the club)

    Looks like a dead man walking and is finally running out of excuses (true) his resignation should be forthcoming if he has any pride and it can’t be too soon for most.

    I found absolutely no one who said anything positive about him, plus many have wised up and realize it all emanates from Ashley, he is the disease, Pardew is but a symptom.

    On the other hand, perhaps he still has some conceited delusive fantasy that he is being unfairly judged.

    Sorry! time to call it a day Al. you probably have earned your last paycheck as a football manager and it should keep you in middle class comfort for some time, which is more than you deserve.

  18. It’s depressing, especially so when you’ve been waiting for it to happen for nearly three years.

    On a different team though, did anyone see Bayern Munich take Manchester City apart the other evening? Manchester City were playing 4-4-1-1 so Guardiola countered with a 4-1-4-1 with Lahm as a sweeper in front of the back four. It was a masterclass in tactics.

  19. though i do have a yank bud that watchs our games that i play mafia wars with but hes peeved off at the mo, cause they keep showing the sunderland games over there since they got that yank striker

  20. and america is 1 of the markets any serious owner should be trying to build up sales in

    October 4, 2013 at 2:11 am

    “@ workyticket
    i live in northeast england bud im not a yank”

    Aye, I know your’re not a Yank, Toon, but Chuckles and tunyc are, and GS is a Geordie in Chicago. Apart from them (and yourself), Joe was the last Geordie over here who commented and that was at 3.43 this afternoon.

  22. cause that 1st half for me was 1 of the worst i have ever had to sit though for me,the plasma come very close to geting chucked though the sitting room window lol

    October 4, 2013 at 2:55 am

    “@ workyticket
    whats ya opion on that 3rd goal we condeed the other night bud”

    Well for a start, it was one hell of a kick, you don’t get many like that. On the other hand it was totally misjudged by Coloccini and he should have done much better.

  24. Pardew Latest:

    You will have good days and bad days. I’ve been here 3 years and it is a tough job but I enjoy it.

    It hasn’t been our greatest week but the club we are, we can win 3-0 at Cardiff and everyone will say we’re going to win the league, you just have to go with it.”


  25. Someone else has finally caught up about who’s operating Newcastle United’s merchandising. It was bloody obvious though when the club’s online shop changed it’s name to “NUFC Direct” and the little “24 hour delivery!” things started appearing down the side just like the Sports Direct site used to have (both sites have been redone since).

  26. sirjasontoon says:
    October 4, 2013 at 12:09 pm

    “It hasn’t been our greatest week but the club we are, we can win 3-0 at Cardiff and everyone will say we’re going to win the league, you just have to go with it.”

    In other words, fans are fickle and shouldn’t be taken seriously.

  27. He’s a complete knob Pardew, He’s saying he is safe, And has the back of Ashley.
    Then after days of silence over the resignation rumours, He comes out with the, “We had a meeting, After the Everton game.

    According to him it is a regular occurrence, And part of the post match debrief.
    Apparently they discus how they are going to go forward.
    This is another of the repeated mantra’s, Which flow from daftie’s mouth, On a regular basis.
    We discus how to go forward, Then why is it, The more meetings they have, On how to go forward, The more backwards, This club goes?

    So is dafty saying if we win one game, We are going to win the league?
    Granted every club has a couple of muppets, Who get carried away, But as far as i can see, Pardew is the one who wins one game, Then acts like Mourinho!
    He then basks in the glory of a couple of wins, And lives of the back of it, Talking tough, And pretending he knows what he’s doing!
    Cannot wait for the day this chump gets what is coming to him!

    So The Mag have now just cottoned on to the fact, That the tills at St James’ Park, Are rigged up to fatties sweat shop?

    Talk about slow on the uptake!

  28. worky @ 20: I did see that. Hart didn’t really help matters much. Seems to me Forster should be England’s #1.

    Who cares though? I’ve given up on international football over all this blatantly corrupt Qatar bullshit.

    Speaking of bullshit, AP also pointed out that we have the same number of points as Manchester United. Yeah, and I have the same number of toes as Cristiano Ronaldo…

  29. tunyc says:
    October 4, 2013 at 2:23 pm

    “Who cares though? I’ve given up on international football over all this blatantly corrupt Qatar bullshit.”

    You’ve just noticed, tunyc? :-)

    FIFA became blatantly corrupt way back in 1974 when Joao Havelange succeeded Sir Stanley Rous as the President of FIFA. Septic Bladder is just Havelange mark II.

  30. Worky: are you doing a Cardiff preview? I lived there for a few months but never got to an area there called Splott. I have always wondered what Splott would look like.

    What’s in a name though? I have been to Upper and Lower Slaughter and they are just farms.

  31. Worky: In other words, fans are fickle and shouldn’t be taken seriously.

    Perfect :lol:

  32. Worky

    A fink weeve awl add some sort of experience wiv rhyming slang, so no explanation’s necessary ere loike!

  33. Well, I thought our 2 best players against Everton were Gouffran and Anita (I will leave Chuck and Worky to discuss Williamson). I bet you he drops them both.

    However, on the subject of Williamson. That was pretty much desperation on Pardew’s part, right. Hadn’t they tried to peddle him to any Championship club that would have him?

  34. Thought I would never say this, but i’m hoping we loose big time to Cardiff.
    Why ?

    Just to speed up the process of Pardews departure, to leave him no alternative but to resign.

    Though he’s just deluded enough to believe it’s not his fault and he will eventually win the cup or achieve some other fantasy.

    Here we are with only Sunderland having conceded more goals, six in the last two games and this is the guy who coaches defensive play.

    He has two good strikers, who are not scoring.
    Perhaps if he could arrange for them to be supplied all alone up front, it could help.

    The mans a disaster and by now it should and has been recognized by all Newcastle fans, with absolutely no one willing to come to his defense.
    Just too bad it took three years to figure it out.

  35. Chuck, I feel the same to an extent, You don’t want the team to lose, But on the other hand, If it pushes Pardew towards the door, Then a little bit of collateral damage, Could come in handy.
    It’s coming to something though, When people are getting that desperate to rid themselves of a crap manager!

  36. worky @ 33: no, didn’t just notice but after this, I can’t fool myself any more, even for 90 minutes.

    Just can’t get thoughts like these out of my head:

    over the last year, NUFC are 11-21-6 in the PL, 39 of 114 points-relegation form over 38 matches…GD of -27…even when we’re good, we’re not that good: 7-2-3 in matches where we score 3 or more (5 times in 38 matches, last in February v. Soton) or keep a clean sheet…in that time, we’ve only beaten one top-half club (Chelsea, February…last good month this club had on the pitch)

    Also, how does this season look if Gabby Agbonlahor doesn’t miss a chance I’d expect to finish 8 times out of 10?

    But yeah, nothing to see here-keep rowing, you paranoid shits…land is in sight…

  37. Looking at our next six games, I’ll be surprised if AP makes it past the next break in Nov. We’ll likely have 11 points or less from 12 matches then.

  38. tunyc

    Ermm! Jonas is fit I hear !

    I think you are aware of what my views are on Williamson.

    Plus I see Gosling has gone out on loan, saved another two bob a week.
    Is there any end to this mans parsimony ?

    God knows who he will pick to play against Cardiff, at this stage no doubt he will field a defensive lineup.

    Grasping at straws, anything to avoid another defeat.

    It’s becoming painful to watch him on the sideline, though of late he appears somewhat detached, a kind of resigned look.

    Is he in fact just waiting like ourselves for the axe to fall ?
    Toughing it out in order to get fired ,as opposed to resigning, in order to be paid.

    That’s not what’s bothering me at present, i’m more concerned whether Ashley has figured out yet that winning sides generate more dosh than loosers.

    And whether he could possibly consider hiring someone who knows how to manage a football side, to replace one that obviously doesn’t.

    Is that too much to ask for the twentieth or so richest club in the world, or are we doomed for more of the same, not mid table mediocrity, but a constant fight to survive relegation.

  39. The thing that surprises me most is that there are no chants from the terraces of “Pardew Out”.

    I think football management has become a game of chess and Pardew doesn’t have the mental capacity to play.

    I make fun of Chucklebunny when he big-ups his faves like Martinez and Rodgers, but he is right in one aspect of what he says, they would both do a better job than the silver pox.

    This job is too big for Pardew, Charlton were too big for Pardew.

  40. tunyc: but Gouffran missed a chance against Wet Spam that my dog could have converted, and he’s dead.

  41. Chuck @46: Yes. If you compare Martinez and Rodgers to Mourihno you have to take into account their records. Rodgers has won nowt and Martinez won a cup and got relegated.

    That said, I would probably rather watch their teams than our team at the minute.

    Actually, our team were better than Everton in the second half – but that was 100% down to Williamson :)

  42. chuck-you know, he is the manager for now and I’m consistent so just as KK should have been allowed to control the squad, AP can pick whom he wants too. But if he does start Willo (I don’t think I would) and/or Jonas (no way I’d start him) I just wish he would take responsibility for the result, either way. As for Gosling-was going to say something myself but what’s the point? As you say, a few more a week saved and we’ve such great depth…

    GS @ 45: I know, and we also should have had a penalty at Villa. I’m just pointing out, though, how one tiny difference in that match might have us on 5 points. If that were the case, nobody could defend our performance so far as even adequate.

  43. GS @ 47: it was also down to the game being virtually over by then. Don’t forget: EFC enjoyed a multiple-goal lead until the 89th minute.

  44. tunyc: I am trying to find a silver lining in the Alan Pardew cloud and there doesn’t seem to be one.

    I think I will switch to being a Man U fan. Doh.

    Did they really think that because they got another dour, aggressive Scot, it would all be a bed of roses?

  45. tunyc

    Actually I don’t recall comparing those mentioned with Mourinho, but I believe just as when he came here as a relative unknown, who had just won the uefa cup, with Porto, the present young group should both be recognized and given the opportunity to prove themselves.

    Unlike say Villas-Boas when hired by Chelsea, who is now doing a decent job at Spurs.

    There is at present a whole bunch of good young managers in the PL, along with the few re-treads as I refer to them, mostly found in the lower ranking sides.

    It’s not brain surgery to recognize this if you know anything about football.

    I mentioned Steve Clarke while he was an assistant at both Chelsea and West Ham as a good prospect for the then revolving door of managers at NUFC.

    I have subsequently added others to a list of good young managers, much better and certainly more aware of how the game has changed and adapted through the last decade, than the so called re-treads.

    And believe they have improved the league both in a tactical and technical way.

    Do I have my favorite’s, not really, I just tease some on here on occasions, in which case they assume I do.

    What i’m saying is, give these guys a bit of respect, as we are lucky to have talented managers like them, in the league

    Not great for us, with our dinosaur re-tread, but there’s an end to everything.

    That and the hope that our Kna nowt owner can reach the conclusion, it’s better to have a young dynamic winner, than a perennial looser, for a manager.

  46. Time for a bite and a couple of Amstels, gorgeous day, best time of year in the city.

  47. Chucklemeister: it has been like David Wilkie for the last month in Chicago – absolutely superb.

    Now tell me what the f@ck is going on with the politics over here and I will confirm that you are an idiot savant.

  48. GS @ 50: I think it’s more that they thought picking whomever SAF tapped would necessarily work out…

    chuck @ 51: huh? Think you got me mixed up with someone else there.

  49. According to Radio 4, Vietnam is said to be “in shock” at the death of super general Vo Nguyen Giap, who defeated both the French and the Americans in the two Indochina wars.

    He was 102 and he’d been suffering from a long illness, surely they can’t be all that shocked!

  50. Well it seems, lunch was not enough.
    In which case I made an evening out of it.
    Few beers plus a take out of possibly the best Asian restaurant in the neighborhood.
    Combination of Sushi and every thing from Indian to Korean Kimshe, Malasian or any of the South Asian recipe’s you want, of course Chinese remains the standard.
    I can well understand the fact that we are getting more overweight by the day, even in China.
    Gotta get out there manana and shed a few pounds.