As we’ve mentioned a few times, gate receipts are an ever decreasing part of Newcastle’s revenue – as long as we stay in the Premier League.
Hopefully, that will be for a long time.
With worldwide interest in the PL increasing around the world, the likelihood is the total payments to Premier League clubs in coming years will increase.
Fan groups have encouraged Newcastle fans to boycott games and while that may get some bad publicity to force Mike Ashley out of the club – any talk about it impacting Mike Ashley’s pocket is nonsense.
First of all, the money not being paid at the gate by fans reduces the club’s revenues- it’s not going to affect Mike Ashley in a personal way – it’s not his money.
So it’s the clubs revenues that will be reduced.
Mike Ashley – how to get him out of the club?
As an example, here are the revenue figures of the last financial year – July 1, 2017, through June 30 of last year.
We made total revenues of £178.5M, and this was the split of the three strategic revenue streams:
- £23.9M from gate receipts – 13.3% of revenues
- £28.2M came from commercial – 15.9% of revenue
- £126.4M came from the Premier league – 70.8% od revenues
So let’s say if the boycotts continue, the attendance can be reduced to say 20% less than a sell-out crowd – that would be about 41,840 in attendance – on average.
If that continued all season long the Newcastle club would lose about 20% of £23.9M in gate receipts, which is £4.76M – and that would hit Newcastle’s revenues – not Mike Ashley’s pocket.
So what would Mike Ashley do with £4.76M less in revenues at the club – make £4.76M less in funds to invest in new players.
While there may be some logic in boycotting games, the main people it seems to have an effect on are the manager and the players on the field.
There was talk of how small the crowd was last Saturday afternoon against Watford – a game we had expected to win against the bottom of the league side who had lost their six previous league games.
Only 44,157 fans were the attendance – the lowest since December 12th, 2012.
There was talk of the crowd also being quiet, subdued and the enthusiasm being low.
That certainly didn’t help our players in what was a close game that we could (and probably should) have won.
While boycotts may bring bad publicity to Mike Ashley, which was the initial intention – let’s not talk of it being a financial burden to Mike Ashley.
He doesn’t even attend the home games, and he’ll just put less in Steve Bruce’s’ transfer fund pocket due to any loss of revenue due to boycotts.
Maybe we should be getting thousands to protest before the home games and making it clear to some rich people and groups around the world we need a new owner to buy the club and save us from Mr. Ashley.
And Ashley is currently having a huge challenge with Sports Direct since its management of the business seems to be as chaotic as it has been for Newcastle United since he bought the club back in May 2007.
What’s dangerous in trying to get rid of Ashley is if it has a negative impact on our players.
It’s going to be a very tough season, and Newcastle are already favorites to be relegated.
The very last thing we need this season is another relegation.
It’s a tough dilemma for fans since we need Ashley out of the club – but maybe protests (with thousands in attendance) would have more impact and do less harm than boycotts to our home results?
What do you think?
This article was originally posted here