United almost double profits
ACCOUNTS REVEAL UNITED MADE A £34.7M PROFIT, UP FROM £18.6M, AS:
OWNER CUTS PERSONAL DEBT OWED BY TOON
HE SPENT £109K ON HOSPITALITY FOR FAMILY
SPORTS DIRECT ADS FINALLY BEING PAID FOR
NEWCASTLE United made a £34.7million profit for the year ending June 30, 2019.
This shows a significant increase from 12 months earlier, when the club reported an £18.6m profit.
With Newcastle still undergoing a Premier League owners’ and directors’ test ahead of a potential £300m takeover, this was the first piece of information to filter down from the boardroom in months. A statement read: “Media income fell £2.5m, being the net of a lower merit award based on league position offset against one additional live TV game (19 vs 18) and an increase in international broadcasting income. “Match income increased £0.9m (4%) from £23.9m to £24.8m as season ticket and Premier League matchday attendances averaged more than 51,000 for the third successive season. “Commercial income fell £0.5m (2%) from £26.7m to £26.2m, impacted by the success in the previous year of the three Ed Sheeran concerts.”
The statement also confirmed owner Mike Ashley was now paying for Sports Direct advertising at St James’ Park.
The retail mogul has come in for criticism from supporters for not paying the club for using the club’s home ground to market his primary business venture.
The club statement added: “The group is now receiving income from Frasers Group plc (formerly Sports Direct International plc) for stadium advertising at St. James’ Park.
“Operating expenses increased £3.3m (3%) from £119.6m to £122.9m, due almost entirely to an increase in wages and salaries, which accounted for £3.2m of the increase.”
United confirmed their wage budget had increased in the last 12 months of accounts.
The club said: “At £96.8m the wages to turnover ratio of 54.9% remains under the target 60%, although slightly up from last year (£93.6m, ratio 52.4%). Excluding amounts released in respect of previous-year onerous contract provisions, the 2019 year figures are £100.9m (2018: £103.4m) and 57.2% (2018: 57.9%).”
The accounts also show Ashley pumped in another interest-free loan after the club’s second year following promotion.
The latest financial figures show he is owed £111m, down from £144m the previous year.
The accounts added: “Mr MJW Ashley and companies under his control continued to provide loan facilities to the group during the year.
“The total balance outstanding at 30 June 2019 was £111m (2018, £144m).
“The maximum amount outstanding during the year was £144m (2018, £154m).
“No interest was payable on for either the current or prior year.”
Ashley also provided matchday hospitality of £109,000 to members of his family over the year and United spent more than £1m on sports goods from Frasers Group.