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EPL Side Newcastle Announces '13-14 Profit Of £18.7M, But $191M Debt To Owner Remains

EPL side Newcastle announced record profits of £18.7M last season due to "increases in television income and new deals with sponsors," according to Martyn Ziegler of the PA. The club, owned by Mike Ashley, also said it saw its revenues increase by 35% from £95.9M to £129.7M. More than half Newcastle's income -- £78.3M -- came from the new Premier League TV rights deals, "with commercial income also increasing." Newcastle said in a statement, "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." It is the "fourth successive year" the club has made a profit (PA, 3/30). In Newcastle, Lee Ryder reported Newcastle said in its statement, "Season ticket renewal figures held steady, as did average Premier League attendances, which were 50,395 compared to 50,517 the previous season." The club added that the debt-free loan to Ashley "has still not been paid." Newcastle's statement said, "The Club's debt continues to remain static at £129 million ($191M) in the form of an interest-free loan from owner Mike Ashley" (CHRONICLE LIVE, 3/30). The BBC reported Newcastle United Supporters' Trust Chair Norman Watson said, "None of this profit is being reflected on the pitch. The club went nearly 18 months without signing a full-time professional player on a permanent deal. Fans want to see money invested in the playing staff. Before the Arsenal match we had only 13 fully fit first-team players -- the squad is extremely thin on the ground" (BBC, 3/30).

QUESTIONS REMAIN: The LONDON TIMES reported Newcastle fans feel that the figures have "left them with more questions than answers." The club has not released the full annual report, "only selected highlights with no detailed explanation" as to how £28.5M of extra costs have been incurred. Online fanzine themag.co.uk Editor Mark Jensen said that he had expected profits for the '13-14 campaign to be closer to £50M ($73.99M) given the increase in income from TV rights and the sale of Yohan Cabaye to Paris St. Germain for around £20M. Jensen: "This has just provoked more questions than answers. There is £28.5 million of costs for which there is no explanation. The wages-to-turnover ratio is also not included" (LONDON TIMES, 3/30).

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