However, the new figures are better and given the new feel good factor bought on by the transfer window I thought I’d have a closer look.
It is important to stress that the Deloitte figures are a bit simplistic but they will do. Instead of demonstrating that our wage bill could cope with a few extra quality players which I did last time I thought I’d be a bit simplistic myself by looking at our position in the Premier League.
In my last article I pointed out that our wage bill was £54m and that given a good squad with 19 international standard players on £50kpw we would need a wage bill of somewhere in the region of £70m. Well our revenues have gone up to £115m which means that would leave us with a wages to revenues ratio of 67% which is good, we could afford a wage bill of £77m which means we can very realistically improve the quality of our squad. Which we appear to be doing.
We have consolidated our position of 7th in the financial league. With Spurs above us with a revenue of £178m. The gap below us to 8th has increased to Everton who brought in £99.5m.
The area of concern for me is that our commercial revenues has dropped by £2m. Now for me that is Llambias’s remit. If we are going to catch up with the others it has to come from commercial revenues. Matchday is limited by capacity and ticket price. Do I hear a clamour from the crowd to increase ticket prices in line with Arsenal? Thought not. TV revenue is dependant upon performance on the pitch so unless we get Champions League money we have to get it from commercialisation. I wrote an article which talked about global brand recognition which is an indicator of how much we can demand from sponsorship. Again we are well down on even Spurs. We are again valued at just under £100m whilst Spurs are £200m and Manchester United £850m.
So from the financial position 7th is where we are. The trouble is to catch up with 6th would take an increase of 55%. Which would require a four fold increase in commercial revenues if it all came from that stream. There are four clubs about 15% below us which is a much smaller gap. These are in order Everton, Villa, Fulham and Sunderland in 11th at £96.4m Below that the Deloitte report does not go.
So what does all this mean in layman’s terms. It means that we are in very good position. We still have room to free up our wage bill to bring in a few more good players. Whilst we are not going to challenge clubs that want to radically over pay players. Hence we didn’t bid for Zaha, and lost out to QPR for Remy. Liverpool, financially in fifth, could easily afford a wage bill double ours. We can however pay more than lots of continental clubs. This means we can bring in a player for good money and then increase it again if the establish themselves as first team players. Which appears to be the policy we have.
We should be challenging for Europe every season but not too surprised when we are not chasing 4th. Champions League is a bonus for us if we were to get it. However, we are vulnerable to the chasing pack if we get it wrong. Like this season.
Oh and 20th biggest (in terms of revenue) club in Europe? I’ll settle for that, for now.
Good read as usual. Do you think Spurs figure will be effected by the lack of champions league this year?
bkemp247(Quote)
It’s 115 million euro’s which is about 97 million pounds so your calculations are abit out
swiller2004(Quote)
Our wages to turnover ratio will drop significantly next season as we will receive at least another £20m from the TV deal and that’s if we finish last!
Stuart79(Quote)
I expect that commercial revenue from the French market will be picking up.
Wellington(Quote)
Useless aren’t I Swiller. 😮
Point is it’s still big step up, and a pack not far behind.
premandup(Quote)
Just a ‘oui’ club
Liam Southern Toon(Quote)
Colo speaks about his open letter:
1
Posted 29 Jan 2013 10:40
Collo speaks
“Every time I go on the pitch I try to say thank you.
“I try to give them my best performance. That’s the way players can say thank you to the fans.”
“In the last few days the newspapers picked up a letter that I wrote.
“The letter is true but the meaning of it is different once translated from Spanish to English.
“I never said that I would go back to San Lorenzo.
“I never spoke to any team, the only reason to go back to Argentina would have been personal problems.
“But they knew I am a supporter of San Lorenzo and the fans were excited because they thought ‘He supports us and this is a big chance to come to San Lorenzo’. The rumours were crazy because they thought I was coming back.
“I would like to say to the supporters of Newcastle United Football Club that I want to stay here and I thank them for supporting me.
“The last few weeks have been difficult for them, I recognise that.
“This is my work and my job and I have to separate my job and my life.
“Everybody in life has problems and it is normal, that is life.”
“A lot of Newcastle fans stopped me in the street here and said, ‘Colo, thank you for everything and your five years here, but whatever your best choice for your family is we will be happy’.
“It was really nice to hear that. I spent four years here already and this will be my fifth.
“The club will get 100% from me and the fans recognise that.
“So to me that is very special and I thank them.”
However, he accepts that some fans may not be as understanding.
The 31-year-old said: “Some fans may say, ‘I don’t care about your problem you should be here because we need you’.
“That is also true as well.
“I can understand that as well.
“We are in a difficult position and things aren’t the way we expected them to be at the start of the season.
“I can understand people’s point of view.
“Sometimes people think the player doesn’t care and that the shirt will always be more important than the player.
“So I can understand. The fans have to be sure that when I go on the pitch that I always try to give a thank you to those who support me and those who give me the opportunity to be here in the Premier League.”
3hourswasted(Quote)
3Hourswasted
Thanks for that. For me that clears things up.
Hopefully we can move on now and it would seem we will have a real Colo on the pitch tonight.
Also think Pards said things right last night, given this statement. Not that he had much choice.
premandup(Quote)
That’s better!! I’m fully behind you now Colo! All is forgiven! 😆
Troy Stavers(Quote)
Here is a link to a much longer article re Colo’s statement
http://www.chroniclelive.co.uk/newcastle-united/nufc-news//tm_headline=exclusive-fans-are-extension-of-my-family-says-fabricio-coloccini%26method=full%26objectid=32700275%26siteid=72703-name_page.html
3hourswasted(Quote)
@Premandup
Good article fella. I prefer talking about the club itself than speculation on players and formation.
Each to their own as I know some aren’t too bothered.
Keep them coming for me.
Its poor that our commercial side is one the wane as I do think we could be me popular.
One simple way would be to buy back the catering and alcohol side of things.
I still find it excruciatingly frustrating that you have to leave your seat 10 mins before halftime to get near the front of the bar queue.
You then watch them pour individual pints whilst the multi pint dispenser stands idle.
It’s not hard! One of the enjoyable parts of going to the match is having a pint at half time but unfortunately you end up standing in a queue for most of it!!
Troy Stavers(Quote)
I fancy a Cabaye on a plate of pan fried Mbwia, coated with a Sissoko sauce and a hadiarra soufflé for dessert!
Ooh la la! 3 michelin stars to nil to the French Revoltion! 😛
Pardeiu the master chef !
Troy Stavers(Quote)
Aye good article Prem.
I did say at the time of the season ticket price freeze-great news for fans considering the current ticket price trend, but it does/did mean we would become reliant on overseas marketing to make up for this relative loss (i.e other clubs will increase their prices, presumably)
We are still laggig in overseas…do the French even watch football that much? Most I meet rarely seem fussed about it, oh they can talk a bit about us and our players and who is good in ligue 1, but they will never “convert” to fans, imo, like America or Asia..
Newkie(Quote)
Good news on Colo. Glad he took my advice and came out and explained it, thought he was just going to keep his head down. Who knows, this could be the makig of him as a leader, taking some responsibility etc..
Newkie(Quote)
http://www.deloitte.com/assets/Dcom-UnitedKingdom/Local%20Assets/Documents/Industries/Sports%20Business%20Group/uk-sbg-football-money-league-2013.pdf
here’s the report in full
M(Quote)
Anyone going to the Shark Bar tonight. ? I will be wearing my trunks, boots and cape! Stand with me and have a pint. 😛
Troy Stavers(Quote)
Well that’s Deloitte-ful news.
Rinton man(Quote)
Although there was something on the news this morning about the Gov getting involved in PL ticket prices? To lower them? Perhaps big Ash had a tip off and signed fans onto ticket prices which will actually be the norm in years to come?…Personally can’t see tickets going lower tho.
Newkie(Quote)
Troy – I’m sure those trunks are actually hot pants. I’ve seen you eyeing the manikins in Fenwicks window.
georgio(Quote)
Newkie – You can never have across the board ticket prices. Tickets in London are more expensive as most things in London are more expensive and a lot of people earn more pretty much.
Stuart79 hit the nail on the head. People want investment but would they stump up £5 extra per match ticket?
toonsy(Quote)
Anyway new article up 🙂
toonsy(Quote)
Troy, at least you won’t have to beat your Reliant Robin with an Alder bush over being angry with Collo anymore…. 🙂 🙂 🙂
Aussie Magpie Fan(Quote)
@Aussie
Reliant Robin? Jokin! I get about on hydraulic spring loaded stilts! 😛
@Georgio
My trunks are hot and sweaty all the time. They’ve never been washed since they were handed down from my grandad Les Kellett. 😛
Troy Stavers(Quote)
Our matchday revenue should be up next year hopefully due to increased home games in european football, but same as last year not many domestice cup games to bump it up
Broadcasting will be up with european games but not dramatically as the money in europa is dwarfed by champions league, this could be outwieghed by an extra game or two more or less being shown on tv in the league
Our commercial revenue, the one the management have the greatest involvement in is pitiful by comparison, less than a tenth of the income recivied by real or barca and less than half of that recieved by 19th place roma, i w ould expect it is less than a lot of teams placed lower than us also
alanthedog363(Quote)
there will be change next year with the wonga.com deal replacing the virgin deal, there has been some attempts to generate revenue from naming rights but maybe we should look elsewhere as to how we can increase this area
It’s understandable that teams like man u are miles ahead here, there shirt deal with GM nearly covers our entire income but there are a number of german, italian and french teams that have much greater commercial revenues and that is an area we should look to improve upon significantly
alanthedog363(Quote)