Premier League - Newcastle cut losses, boost commercial revenue in 2012-13

Newcastle United cut operational losses to £660,000 pounds ($1.1 million) in the 2012-13 financial year in an effort to comply with UEFA's financial fair play (FFP) regime and boosted commercial revenue by almost 25 percent.

This revenue increase to 17.1 million pounds helped boost profits after tax to £9.9 million, from 1.4 million in 2011-12, on overall turnover of 95.9 million.

Newcastle, owned by sports goods retail tycoon Mike Ashley, finished 16th in the 20-strong Premier League last season and are currently eighth.

"Complying with FFP continues to be a key influence on strategy and something we have been working hard at over a number of years," the club said in a statement on their website (www.nufc.co.uk).

"Everyone at this club wants to finish as high up the Premier League table as they possibly can. If the club can sustain itself as a 'top ten' team year-on-year with a stable structure and the right finances, it gives itself every chance of pushing even further."

Financial fair play is being phased in by European soccer's ruling body to curb extravagant spending by clubs which threatens the long-term health of the game in Europe.

Newcastle's debt is made up of a 129 million-pound interest-free loan from Ashley. Their operational losses in 2011-12 were 5.1 million.

The club said they spent 28.7 million on new players, including Yoan Gouffran and Mathieu Debuchy, in the year to June 30, 2013, a rise of more than 30 percent, but recouped 11.1 million from selling players.

The wage bill fell to 61.7 million and the wage-to-turnover ratio stood at 64 percent, down four percentage points.

Matchday turnover rose 15.9 percent to 27.8 million with the average Premier League home attendance climbing to 50,517 - the third highest after Manchester United and Arsenal. ($1 = 0.6013 British pounds) ($1 = 0.6013 British pounds)