Mike Ashley debt payment, Sports Direct advertising fee, profit increase & Lee Charnley's wage drop – Newcastle United's accounts revealed
On the final trading day of May, United have posted their accounts and buried within them is official confirmation that the club repaid a significant chunk of Ashley’s interest free loans.
United repaid Ashley £33m of his total £144m owed. The debt to Ashley now stands at £111m.
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Hide AdThe club also confirmed Frasers Group – the name of Ashley’s retail empire including Sports Direct – now pay for stadium advertising.
The statement reads: “The Group is now receiving income from Frasers Group plc (formerly Sports Direct International plc) for stadium advertising at St. James’ Park.”
While the exact figure is not revealed by the accounts, stadium advertising only rose from £385,000 in 2018 to £1,113,000 in 2019.
Elsewhere, the club actually posted a profit – £34.7million to June 2019, compared with £18.6million for the 12 months previous.
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Hide AdAnd sole director Lee Charnley’s yearly wage also dropped from £300,000 pa in 2018 to £267,000 pa in 2019.
The club’s account statement, in full, reads: “Turnover fell by 2%, from £178.5m to £176.4m.
“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 over 51,000 for the third successive season.
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Hide Ad“Commercial income fell £0.5m (2%) from £26.7m to £26.2m, impacted by the success, in the prior year, of the three Ed Sheeran concerts. 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.
“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 prior year onerous contract provisions, the 2019 year figures are £100.9m (2018: £103.4m) and 57.2% (2018: 57.9%).”