However it’s hard to argue that football finances have become more relevant to football fans up and down the country. The amount of debt clubs are in, turnover, expenditure, income, it can all get a little confusing, especially when you consider that there is a lack of clarity regarding income from things such as TV money.
Most fans are aware that by being in the Premier League you cane expect a windfall of cash from TV money. Some people, rather mischievously, claim that by being in the Premier League you can expect £90 million a season. This is misleading and usually only gets thrown about around the time of the play-off final, but I won’t bore people wit why it is misleading. What matters, I guess, is just how much Newcastle United can expect from the TV oney pot this season.
The Premier League distributes TV rights money based partly on performance, partly via equal shares of TV income, and partly on the number of times a club’s matches are screened live on domestic television. This season, each club will receive £13.8million as the equal share of domestic TV rights and £17.7million as the equal share of overseas TV rights.
So we’re on £31.5 million already.
On top of that, every place in the Premier League table is worth £752,000. if you base that on our current league position of 11th we can expect a further £7.52 million for our finishing prize.
That’s £39.02 million.
Facility fees of £485,000 are paid to a club every time they play in a live TV match, and we will have been on TV for 16 of our league games come the end of the season. That’s a further £7.76 million in TV money.
Giving us a total of £46.78 million from TV and prize money, if we finish 11th.
That’s a lot of cash, but to put it in perspective our wagebill is rumoured to be £52 million a year.
So there you go. From this you can work out just how much money the club can rake it from TV revenue if you’re that way inclined. Just bear in mind that £31.5 the club will get from the equal share is paid MONTHLY and not all in one go. It was paid every six months but the situation we saw at Portsmouth saw it changed to a monthly payment to help clubs budget for outgoings throughout the season rather than spend it all in one go.
Anyway, enough. This is one for the geeks among us.
Reet, we’re back. I’ve had to put the cache back on again for the timebeing so everyone will have to log in to make sure they get the latest comments 🙂
toonsy(Quote)
Are we back proper this time around? 😕
toonsy(Quote)
Nice to have blog back! 🙂
AndrewNUFC(Quote)
Weyyy! Good to be back 😉
dan4toon(Quote)
Don#t talk too soon 😕
toonsy(Quote)
Is it safe to come oot?
richietoon(Quote)
Hell’s Bells!
Moreno(Quote)
.org invaded my mackems 🙄
richietoon(Quote)
*by 😳
richietoon(Quote)
Makes a change from them invading their own mam’s back passages
Moreno(Quote)
Toonsy, are those numbers for this year? Or, are they the numbers for the renewed TV contract? I thought I saw those numbers in an article yesterday…but it was for the renewal? Still gives us a rough idea of TV income and such.
I guess the positive to take away there, is that with gate fees and the sale of a certain forward, the club should make a pretty nice profit this season then. I realize there are other operating expenses of course, but given the difference between wages (rumored) and TV income (supposed), being only 6m GBP, then we should find the club in a good…correction…very good position financially.
NorCal Toonfan(Quote)
Rich – That is part if the benefit of NOT being on Newsnow 😆
toonsy(Quote)
Least there getting more comments 😆
AndrewNUFC(Quote)
Is it me or have we turned into a group of accountants since the arrival of Mr Ashley… We were formally just football fans and Newcastle United supporters… Guess that’s the effect the way the club is being run has had on the fans.
That and draining almost all hope and ambition out of us… But then again at least we wont “do a Leeds”
NiMagpie(Quote)
If you add in £28 million for gate receipts/Season tickets, catering and sponsorship of £15 million then the total revenue would be about £90 million.
Last accounts showed wages were £48 million and other expenses £27 million so that leaves about £15 million profit (but Ashley was due to take back £12 million last October so that means a small profit of £3 million) – hence the statement we are breaking even.
Of course there is also the small matter of £35 million from Carroll sale so there is plenty of money that can be spent in the summer. 😀
3hourswasted(Quote)
But in fairness the country as a whole has felt the effect of the recession depression!
Need a few good signings in the summer to cheers us all up!!!
NiMagpie(Quote)
Toonsy…aye, have to admit thats one thing I don’t miss
richietoon(Quote)
Very helpful article for those of who would have no idea how to track this info down
AndrewT(Quote)
cracking article by the way.
So if we finish 11th our prize money is £46.78 million and our rumoured wage bill is about £52 millions?
Smith and Xisco being on about 50k per week is about £5.2 million per year…
Moreno(Quote)
AndrewT – One of the reasons I wrote it. This info isn’t that widely available so it can serve as a reference in the future 😉
Shame it couldn’t have been read earlier 😥
toonsy(Quote)
Is the league position money and transfer money taxed? I know nothing of financial stuff… :/
NiMagpie(Quote)
NiMagpie – It will be. Everything is taxed 👿
toonsy(Quote)
Tax will be paid on the operating profit (about £3 million) so doubt there’ll be much to pay
3hourswasted(Quote)
There we go, now we know 😀
toonsy(Quote)
Good evening all whats the craic 😆
Big Dave(Quote)
great article. Always been interested in player contracts, wages, and income. Does this come public after a set amount of time?
Ryan(Quote)
Ryan – It’s not often that stuff like this becomes public. The only chance we get is when the accounts come out, but by the time they are available they are already outdated. I mean the latest accounts were out a few weeks back and they covered our Championship season.
toonsy(Quote)
Err…. I’m not a maths genius, but 11 x 752,000 is not 7.52Million… I believe it is 8.272 Million…
Shanghaitoon(Quote)
Calculate it again, from the bottom club up. The bottom club gets 752,000 up to 11th which is ten payments including what the bottom club gets.
Still as you said, you’re not a maths genius, neither am I, but the calculator I used to check it all is 😉
toonsy(Quote)
Toonsy, 😀
Moreno(Quote)
😆 😆
richietoon(Quote)
We really need to make up for the low spending last season by bringing in a good few new players so we can finish higher and make our results and
performance a lot better
SNUFC(Quote)
Toonsey
SNUFC(Quote)