Newspaper article The Journal (Newcastle, England)

United Profits Double - but Club Faces 'Fiscal Cliff'

Newspaper article The Journal (Newcastle, England)

United Profits Double - but Club Faces 'Fiscal Cliff'

Article excerpt

Byline: Lee Ryder Chief Sports Writer

NEWCASTLE United have announced a profit of PS32.4m in their annual financial figures, but admitted that healthy fi-nances will not be any consolation to fans with the club on the brink of relegation.

The club's accounts, which cover the period before its spending in both the summer and January transfer windows, show profit after tax almost doubling to PS32.4m.

Managing director Lee Charnley has admitted supporters will not take much consolation from a positive set of figures and said that "football results and not financial results are what our supporters want to see from us".

The annual results, which have been lodged at Companies House, come just days after a football finance expert warned the club is on the edge of a "fiscal cliff" as relegation to the Championship would cost it tens of millions of pounds.

The accounts also show the club still owes owner Mike Ashley PS129m in interest-free loans.

A United statement read: "During the year ended 30th June, 2015, Newcastle United generated a profit after tax of PS32.4m (2014: PS18.7m) and a net cash inflow from operating activities of PS39.1m (2014: PS32.9m).

"Of the PS39.1m cash generated, PS23.8m was spent during the financial year on the playing squad (net of disposals).

"The remainder (which formed part of our cash balance at 30th June, 2015, of PS48.3m) has been spent (or has been contracted to spend) in full since 1st July, 2015.

"In total, the summer 2015 and January 2016 transfer windows have seen a net spend on the playing squad of just under PS80m, and a significant increase in the club's annual wage bill."

The accounts show that matchday revenue increased 3% to PS26.8m, mainly due to an additional home cup match in the accounting period.

Media revenue fell 1% to PS77.2m due to the reduction in merit-based payments resulting from the club's 15th-place finish, although that was partially offset by an increased number of games broadcast live (20 compared to 14) together with an increase in overseas TV revenue. …

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