Newcastle in profit again
Published 25/02/2014 | 16:52
Newcastle have made a profit for the third year in a row as the club cut spending on player wages and increased their commercial income.
The club made a profit after tax in 2012/13 of £9.9million - up from £1.4million in 2011/12 - even though spending on player transfers increased.
Turnover also rose by £2.4million to £95.9million with commercial revenue rising 24.2 per cent to £17.1million, while Newcastle's total wage bill fell from £64.1million to £61.7million and the wage-to-turnover ratio has dropped to 64 per cent below the Premier League's 70 per cent average.
The club's debt remains the same in the form of a £129million interest-free loan from owner Mike Ashley.
A statement from the club's board said they were striving to comply with UEFA's financial fair play (FFP) rules and the Premier League's new spending controls.
The statement said: "As supporters will be aware, finances are a significant issue for all football clubs given the introduction of financial fair play into the Premier League in addition to UEFA's regulations.
"Complying with FFP continues to be a key influence on strategy and something we have been working hard at over a number of years.
"Everyone at this club wants to finish as high up the Barclays Premier League table as they possibly can. If the club can sustain itself as a 'top 10' team year-on-year with a stable structure and the right finances, it gives itself every chance of pushing even further.
"The process requires patience but we remain absolutely committed to growing the club in a responsible and sustainable way."
Newcastle purchased six senior players in the 2012/13 financial year - all in January 2013 - at a cost of £28.7million, partially recouped by £11.1million from the sale of Demba Ba, Leon Best and Fraser Forster.
Matchday turnover rose by 15.9 per cent to £27.8million, but the cub's income from TV money dropped by eight per cent to £51million, reflecting the impact of their 16th-placed finish in the Premier League last season.