Newcastle reveal bumper profits in latest set of accounts – but debt to Mike Ashley ‘static’ at £129m

DECISION ... Mike Ashley, right.

DECISION ... Mike Ashley, right.

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NEWCASTLE United today revealed that it made a profit of £18.7m after tax in its latest set of financial accounts.

The club’s turnover for the year ending June 2014 increased to £129.7m, up from £95.9m the previous year.

The club has recorded strong results, with the growth in commercial revenue playing a greater role in delivering a record £18.7m profit after tax, up from £9.9m in 2013.

However, owner Mike Ashley has not taken any money back from the club, and the club’s debt, in the form of an interest-free loan from the billionaire, remains “static” at £129m.

A statement read: “Newcastle United Football Company Limited has today confirmed continued financial progress as it filed its annual accounts for the year ending June 2014.

“The club has recorded strong results, with the growth in commercial revenue playing a greater role in delivering a record £18.7m profit after tax, up from £9.9m in 2013.

“The results signal the fourth consecutive year of recorded profit for the football club.

“Operational losses of £0.6m in 2013 have been turned into an operating profit of £4.7m as the club continues to outperform UEFA Financial Fair Play regulations.

“The club’s turnover rose to £129.7m, up from £95.9m the previous year. Matchday revenue, which includes ticket sales and hospitality, dropped slightly to £25.9m, down from £27.8m in 2013, when the club hosted seven additional home games as a result of its participation in the UEFA Europa League.

“Season ticket renewal figures held steady, as did average Premier League attendances, which were 50,395 compared to 50,517 the previous season.

“Media rights revenues accounted for £78.3m of turnover, a 53.3 per cent increase on the previous year. This reflected the new Barclays Premier League broadcasting rights deal as well as the club’s improved league position of tenth in 2013/14, compared to 16th the season before.

“Most significantly, the club reported strong commercial revenue growth delivering £25.6m in 2014, up from £17.1m in 2013. This 49.7 per cent increase was largely the result of two lucrative new deals with the club’s principal sponsors, Wonga and Puma.

“The club’s debt continues to remain static at £129m in the form of an interest-free loan from owner Mike Ashley. None of the debt has been repaid to Mr Ashley nor has the owner taken any other monies from the club.”