Newcastle have snuck onto Forbes’ list of the top 20 most valuable and wealthiest clubs in the world.
It’s great news for Newcastle and an example that the club is one of the best run in the Premier League with a solid business model and some shrewd transfer activity on the part of the club’s manager.
The club is currently valued at £172 million which shows a nine per cent increase year on year from the point the list was first compiled way back in 2004 and it should have some very positive benefits for the club moving forward.
Newcastle increased their turnover to just shy of £100 million by June of last year which is very significant in their journey to meet new financial restrictions in English football and break even.
Alan Pardew has shown a remarkable ability to so far sign players for small fees through a quality scouting network and solid investments at player level.
The effect getting back into the top 20 of the richest clubs in the world will have is that it allows Newcastle justify charging higher fees or contracts to sponsors and advertisers which is another way of jacking up the profit margin.
The club still does not have the global appeal of a side like Manchester United, which restricts them in the amount of cash they can demand in sponsorship contracts but the stability they are capable of provides a solid platform for potential advertisers.
However, Newcastle, like most other teams in the Premier League, seem to always be looking for new ways to develop overseas and the size of the club in England means that should always be a possibility.
Once that has been accomplished it releases a little bit of the pressure on Newcastle because, if they need to, they can go and pay a higher fee for a better class of player when their rivals are held back.
Broadcasting agreements for next season and beyond also show that Newcastle are going to get a bigger share of TV money than ever before, which the club can reinvest in the infrastructure of the side to ensure that breaking even never becomes a problem.
Newcastle have not been having the best of seasons so this is a big piece of positive news for the club, who are fighting away to finish in as high a league position as possible, which again means more cash.
It’s also a long term benefit the club has been able to enjoy from having Mike Ashley, a businessman, as the club’s owner when there was real pressure on the club to get rid of him when Newcastle were last relegated down to the Championship.
Ashley seems to have found a business model and a financial structure for the club, which will now allow them to consolidate in the top 20 richest clubs that exist and also develop into higher positions on that list.
Can Newcastle stay in the top 20?
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