- Premier League
Newcastle announce profit
Newcastle United have recorded a profit for the year ending June 2012, the club has revealed.
The Magpies, who have recorded a profit for two years running, released their latest financial figures on Wednesday.
The Premier League club made a profit after player amortisation (the paying off of debt in regular installments over a period of time) of £1.4 million, however, that is a lot less than last year's level of £32.6 million, which was due largely to the £35 million sale of striker Andy Carroll to Liverpool.
In further good news, Newcastle have also re-entered the list of the world's top 20 revenue-generating clubs after increasing turnover by 5.4% to £93.3 million. This includes a rise of 14.6% in television income due to their fifth-placed finish last season - a figure which is set to be increased by the upcoming broadcasting deal.
However, while operating costs have remained steady at £21.6 million, operating profit fell from £13.3 million to £7.5 million, and the club's wage bill rose by 20% to £64.1 million. This surge was down to new contracts for the likes of Yohan Cabaye, Sylvain Marveaux, Davide Santon, Papiss Cisse and former Newcastle man Demba Ba, while it represents an increase in the wages-to-turnover ratio of 8.1% to 68.7%.
While St James' Park attendances rose to an average of 49,936 during the period - up 2,190 on the previous year - ticket revenue dropped by seven per cent due to a series of pricing initiatives.
Elsewhere, there was also a drop for commercial revenue which decreased by 12.7%. However, this does not take into account the club's new partnership with Wonga, which they claim "represents a significant increase on the club's previous commercial agreements''.