Penalty shoot-out costs Newcastle Â£10m
Friday 08 October 2004
Newcastle United, the publicly quoted Premiership football club, announced a fall in profits yesterday which it blamed on failing to qualify for the group stage of last season's Champions' League.
The club were knocked out of the competition in a penalty shoot-out against Partizan Belgrade, costing the club up to £10m in lost television revenue. The loss was partially offset by increases in revenues elsewhere, such as Premier League match revenues, broadcasting turnover and catering. The group's turnover was £90.2m, down 6 per cent on 2003, while earnings per share were up 7 per cent to 3.2p. Total operating profit fell by £3.3m to £8.3m.
The club's chairman, Freddy Shepherd, said: "I am pleased to announce a successful year for Newcastle United, delivering a strong performance both on and off the pitch." He commented on the team's successful run in the UEFA Cup, saying that it helped to "drive a sound financial performance".
"We managed to keep a tight rein on costs with wages and salaries reducing by 1 per cent to £44.9m," Mr Shepherd said.
Despite falling profits, the board has proposed sustaining the final dividend at the 2003 level of 2.04p per share, which means that Shepherd Offshore, Mr Shepherd's private company, will receive more than £600,000 thanks to its 21.6 per cent shareholding in the club
The club have signed a new contract with Adidas, which is expected to generate £20m to £25m over its five-year course. But details have not yet been released of a new contract with Northern Rock, which is said to have been signed on improved financial terms.
When releasing its figures, Newcastle also outlined plans for future ventures which include a 14,000 sq ft Adidas store that will open in January and the Newcastle Utd Superpub, with a capacity of 1,500, which will open shortly afterwards. In a joint venture with MGM Mirage, there are also plans to develop a casino and hotel complex on a site adjacent to the ground, depending on changes in gaming laws.
Recently the club have teamed up with Sky One, renting out their football academy for the channel's reality TV show The Match. The show will culminate on Sunday with a celebrity football match played at St James' Park.
The club has been active in the transfer market this summer, signing high-profile names such as Patrick Kluivert from Barcelona on a free transfer, James Milner from Leeds United (£3.5m) and Nicky Butt from Manchester United (£2m). The sale of Jonathan Woodgate to Real Madrid in August for €20m (£13.8m) will be included in next year's accounts.
Newcastle has no plans to follow its rivals Sunderland in de-listing its shares from the stock exchange, according to a spokesman. "That hasn't even been discussed," he said.
Olympic diver has made his modelling debut for Adidas
- 1 Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
- 2 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Revealed after 75 years of secrecy: 'Fifi' the glamorous WW2 special agent who tested British spies' resolve
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
Scottish independence: Final opinion polls show undecided voters could swing the result either way
Isis release 'Flames of War' video warning Obama of attacks troops could face in Iraq
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Alan Henning: British Muslim leaders unite to call on Isis to release UK hostage
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Portuguese academic says British are 'filthy, violent and drunk'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
£20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...