Member Article

Revealed: North East football clubs generate over £250m in 14/15

Newcastle United, Sunderland and Middlesbrough, the North East’s three Premier League and Championship clubs, generated combined revenue of £251m in 2014/15, according to the 25th Annual Review of Football Finance from the Sports Business Group at Deloitte

Figures showed that Newcastle United recorded the 7th highest revenue in the Premier League in 2014/15 (£129m). They also retained their place in the Deloitte Football Money League, which ranks the highest earning clubs globally, rising two places to 17th.

Sunderland’s 2014/15 revenue of £101m (3% decrease on 2013/14) was the 14th highest in the Premier League, but still gained them 25th place in the Deloitte Football Money League.

Newcastle United recorded the second lowest wages/revenue ratio in the Premier League (51%) in 2014/15, with only Burnley spending less on wages relative to revenue. Conversely, Sunderland had a wages/revenue ratio of 76%.

Both Newcastle United (£40m) and Sunderland (£1m) recorded operating profits in 2014/15, whilst Middlesbrough reported an operating loss of £8m.

Newcastle United (50,500) and Sunderland (43,157) were both in the Premier League top six in average league match attendances in 2014/15, in third and sixth positions respectively.

Middlesbrough’s promotion to the Premier League at the end of the 2015/16 season will be worth at least £170m to the club, composing of a minimum £95m for a year in the Premier League, plus two seasons of parachute payments.

That figure could expand to £290m if they avoid relegation in their first season in the top flight.

Adam Bull, Senior Consultant in the Sports Business Group at Deloitte, commented: “With promotion to the top flight now worth at least an additional £170m to those Championship clubs not in receipt of a parachute payment, it is no surprise that clubs are doing all they can to put the best talent on the pitch in the hope of reaching the promised land of the Premier League.”

Bull continued: “At the same time, as none of the Championship clubs reported an operating profit in 2014/15 they need to be mindful that profits from player sales or owner funding are likely to be needed if they do not gain promotion.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →