EPL side Newcastle United has been able to put more than £38M ($56.4M) into its bank account as the "full extent of the club's success as a business" under Owner Mike Ashley revealed an "extraordinary stockpile of cash," according to Luke Edwards of the London TELEGRAPH. The size of the club's bank balance will "incense supporters who have argued for several years that profits are more important to Ashley than success on the football pitch." Although the club announced last month that it has "only made a profit" of £18.7M for the last financial year, that did not "reveal the full extent of the increase in cash flow." The full accounts registered with Companies House on Monday show that £38.6M ($57.29M) was transferred into Newcastle's bank account as a "cash-flow sum" -- paying off a £4.5M ($6.68M) overdraft and leaving £34.1M ($50.6M) available. Around £10M ($14.8M) of this will be used to "build a new training ground building at their Benton base" (TELEGRAPH, 4/15). In Newcastle, Graeme Whitfield reported the details reveal that the club's staff numbers "remained the same at 288, though playing squad and support staff increased by 18 to 133, ofset by a reduction in commercial and other positions." The company's wage bill rose by £16.5M ($24.5M) but because of the "large rise in turnover," the ratio of wages to turnover improved to 60.3% (from 64.3%), which the accounts say is "within the club's desired range" (THE JOURNAL, 4/15).
FURIOUS FANS: The PA's Martyn Ziegler reported the revelation has "infuriated Newcastle fans." A protest, backed by the Newcastle United Supporters' Trust, is planned for Sunday, "with fans being urged to boycott the home match against Tottenham." The protest comes with the Magpies "having lost their last five Premier League matches." Mark Jensen, editor of online Newcastle fanzine themag.co.uk, said, "The accounts show that all this cash was generated and the question a lot of fans would ask (is) why was a significant portion of that not spent on team strengthening? The idea of a boycott has been building for a long time and you can't blame the fans, and I'm all in favor of it. It's a starting point where fans may feel empowered and make their feelings known." The accounts say Ashley still has £129M ($191M) in interest-free loans outstanding, "but the money in the bank means the club's net debt" is down to £94.8M ($140.7M) (PA, 4/15).
SPORTS DIRECT DOUBLES PROFITS: In London, Kadhim Shubber reported Ashley made more than £500M ($742M) as the sale of shares in Sports Direct "more than doubled pre-tax profits at his personal holding company." Mash Holdings Ltd., through which Ashley holds stakes in Sports Direct and Newcastle, reported £542M in pre-tax profits for the year to April 30, 2014. This figure, boosted by £283M worth of profit "on the disposal of shares in Sports Direct in two separate sales," was up 111% on the previous period (FINANCIAL TIMES, 4/14).
PICTURES REMOVED: In London, Edwards reported in a separate piece the club has "risked more criticism from supporters for trampling on the club's history by dumping pictures" of former Manager Bobby Robson and players Alan Shearer and Gary Speed "in a skip" outside St. James' Park. The pictures have been "removed from corporate boxes inside the stadium and replaced with images of the current playing squad and staff" (TELEGRAPH, 4/14).
