NUFC Accounts

[snakehips 0]

"The accounts up to 30th June 2008 have now been filed for both Newcastle United Limited and St James Holdings Limited, the latter company is the parent company that Ashley has used for his investment in the club. Ok some points from both companies:

 

• Income is up to £99 million from £87 million last year. As has been discussed on here this is due to the increase in tv money.

 

 

• The club has made a pre tax loss of £20.5 million for the year, leaving the balance sheet technically insolvent to the tune of £36 million. Ernst and Young have signed off a clean audit report due to Ashley giving an undertaking that he will continue to support the club financially.

 

 

• How is the loss made up?

 

Loss before amortisation, player trading and exceptional items £2.2 million

Allardyce blow out cost £4.7 million

Amortisation of players contracts £17.8 million

Interest paid on the old debt before Ashley paid it off £6.6 million

 

Total loss from that lot = £31.3 million

 

We then have a profit from disposal of players £10.8 million

 

Leaving an overall loss of £20.5 million

 

• The question that has been much discussed is how much Ashley has put into the club. And the answer is £100 million as a loan, £70 million of that was used to clear the old debt and £30 million has been put in to keep the club going. Since the 30th June he has put in a further £10 million of cash as working capital. He paid £138 million to buy the club, so his total investment is £248 million so far.

 

• Note 26 to the accounts informs us that in the September transfer window the club spent £13,615,000 on new players and sold players for £13,610,000. This represents a net spend of £5,000. The same note also tells us that Kevin Keegan resigned on the 4th September, there is no further comment in respect of this.

 

 

There will inevitably be some discussion on here at some point about amortisation of players’ contracts and whether it should really count as a cost. In my opinion it should because if you ignore it you don’t reflect the money paid out for players. In other words if you ignore it you are basically saying we got Owen, Duff, Martins, Collo etc for nothing.

 

Equally there is the argument that depreciation of the money spent on the stadium should not count but again I think it should. The revenue earned from the stadium is a decent chunk of income and it seems to me to be right to reflect some of the original cost of that asset in the results for the year.

 

There’s a lot more going on in the accounts than that obviously but I hope that the above is of interest. And I hope its understandable, I tried not to get too technical other than the bit on amortisation"

 

EDIT: as said in the title, this is off another site - posted by someone else (far clevererererer than me) the comments are his, not mine.

Edited January 21, 2009 by snakehips

[JawD 99]

Sorry, Im not getting that. £99M income with losses of £20.5M. So, our total costs for the year are £119.5M. Id like to see that broken down.

[Craig 6700]

I'm finding it hard to believe that the summer outgoings and income was only £5,000 apart.

 

Someone been fudging the books?

[spongebob toonpants 4132]

I wonder how the figure of 17.1m for amortisation of players’ contracts was arived at

Its way up on previous years, even though weve pruned the squad

 

Im not sure how relevant it is anyway as he is going to sell anybody worth a bean

 

tbf I havent got a scooby about accountancy though

[spongebob toonpants 4132]

very handy the way the loss is exactly the "bankroll figure"

 

cunt

[ewerk 31195]

• How is the loss made up?

 

Loss before amortisation, player trading and exceptional items £2.2 million

Allardyce blow out cost £4.7 million

Amortisation of players contracts £17.8 million

Interest paid on the old debt before Ashley paid it off £6.6 million

 

Total loss from that lot = £31.3 million

 

We then have a profit from disposal of players £10.8 million

 

Leaving an overall loss of £20.5 million

 

So if we take out amortisation of contracts which doesn't actually affect cash flows, the Allardyce payment (a one-off fee) and the fact that we'll no longer be financing the debt then it would overall be a profit of £9.2m? Doesn't sound too bad.

[Kid Dynamite 7169]

4.7million to sack the manager. Bet he was loving it

[Hadrian 0]

deloitte(sp?) report had us at 6m+ profit last season , one of 6 clubs to make a profit in prem

[spongebob toonpants 4132]

Does the turnover include the money taken in advance for the 3 year season ticket scoop, or would that be shown over the next two years?

And wouldnt the FATSAM payout be spread over the remaining years of his contract.

 

From a position of complete ignorance I pronounce these figures a sham!!

Edited January 21, 2009 by spongebob toonpants

[ChezGiven 0]

very handy the way the loss is exactly the "bankroll figure"

 

cunt

 

It probably works the other way round tbf.

[ChezGiven 0]

A bit more info in response to some of the questins on here:

 

1) Income (last year in brackets)

 

Matchday £32 million (£34 million)

Media £41 million (£26 million)

Commercial £26 million (£27 million)

 

 

2) Players wages £70 million (£65 million) bringing the ratio of wages/turnover down to 70% from 74%.

 

 

3) Cash flow in basic terms:

 

 

Operating cash flow - £5 million

Finance servicing costs - £8 million

Net capital spend - £21 million

Loan repayment - £70 million

 

Total out = £104 million

 

This was financed by :

 

Ashley £100 million

Overdraft £4 million

Total £104 million

[ChezGiven 0]

Does the turnover include the money taken in advance for the 3 year season ticket scoop, or would that be shown over the next two years?

And wouldnt the FATSAM payout be spread over the remaining years of his contract.

 

From a position of complete ignorance I pronounce these figures a sham!!

 

Looks like its not included.

[peasepud 59]

Does the turnover include the money taken in advance for the 3 year season ticket scoop, or would that be shown over the next two years?

And wouldnt the FATSAM payout be spread over the remaining years of his contract.

 

From a position of complete ignorance I pronounce these figures a sham!!

 

Looks like its not included.

 

The accounts were filed to 30th June according to the first post, interestingly the sale of season tickets was delayed last year and we literally had days to make our minds up, get the cash and pay up. Anyone have a recollection as to when exactly that was? and how far did it differ to normal years?

 

This bit confuses me though:

 

Note 26 to the accounts informs us that in the September transfer window the club spent £13,615,000 on new players and sold players for £13,610,000. This represents a net spend of £5,000. The same note also tells us that Kevin Keegan resigned on the 4th September, there is no further comment in respect of this.

 

How? these accounts were for the period upto 30/06/08 therefore (in my non accountant head) nothing after that date should be included?

[East Stander 0]

I too am now trying to work my way through the accounts of NUFC Ltd and the holding company SJH Ltd which I've just downloaded thanks to the heads up.

 

Found out that Freshfields were paid £1,357,000 for Mort's services for his year here

[Ketsbaia 0]

In layman's terms do those figures somewhat explain Ashley's frugalness? Or is he still the anti-christ?

 

Does it go anyway to explaining what state the club was in when he bought it out as well?

[trophyshy 7084]

Cunti-Christ tbh.

[Gemmill 46026]

I too am now trying to work my way through the accounts of NUFC Ltd and the holding company SJH Ltd which I've just downloaded thanks to the heads up.

 

Found out that Freshfields were paid £1,357,000 for Mort's services for his year here

 

Link for download, please?

[Lazarus 0]

Ashley might still have to cough up a few million to settle keegans case

[Gemmill 46026]

Does the turnover include the money taken in advance for the 3 year season ticket scoop, or would that be shown over the next two years?

And wouldnt the FATSAM payout be spread over the remaining years of his contract.

 

From a position of complete ignorance I pronounce these figures a sham!!

 

Looks like its not included.

 

The accounts were filed to 30th June according to the first post, interestingly the sale of season tickets was delayed last year and we literally had days to make our minds up, get the cash and pay up. Anyone have a recollection as to when exactly that was? and how far did it differ to normal years?

 

This bit confuses me though:

 

Note 26 to the accounts informs us that in the September transfer window the club spent £13,615,000 on new players and sold players for £13,610,000. This represents a net spend of £5,000. The same note also tells us that Kevin Keegan resigned on the 4th September, there is no further comment in respect of this.

 

How? these accounts were for the period upto 30/06/08 therefore (in my non accountant head) nothing after that date should be included?

 

Note 26 is Post Balance Sheet Events, cocknose. In other words, it's events of significant financial impact which have happened since the date of this balance sheet (30/6/08). The club are obliged to disclose what these are, and the extent of the financial impact, but they aren't included in any of the actual figures.

 

And the question regarding advance season ticket sales - income and costs have to be matched to the time period to which they relate. So the income in these accounts will relate to ticket sales for the 07/08 season. At the end of the current season, the income for last summer's sales for the 08/09 season only will be taken as income. That which relates to future years will be held on the balance sheet and released as and when the matches to which it relates take place.

 

Hope that makes sense.

[Matt 0]

This doesn't detract from the the shambolic management and pathetic PR spin, but there's a reason we're not out spending fortunes on players- NUFC is still leaking cash at a staggering rate. Big-name wages for small-time players are crippling the club.

 

This doesn't work as a business- the fact EY signed off on the basis of Ashley's guarantee means that they do not see the club as a viable standalone business (nor has it been for some time in all honesty). If Ashley left tomorrow, we would be heading for administration as we would not have sufficient cash to clear the debts.

 

Bit of a poison pill for any buyer that they need to find £100m in cash to repay the loan to SJHL. The inherent value in NUFC is pretty close to zero.

[Hadrian 0]

the original article is full of shit . late cbh gettin into it .

 

one link for now http://www.journallive.co.uk/north-east-ne...61634-20989122/

[ewerk 31195]

the original article is full of shit . late cbh gettin into it .

 

one link for now http://www.journallive.co.uk/north-east-ne...61634-20989122/

 

You reckon the club's accounts are full of shit then?

[snakehips 0]

the original article is full of shit . late cbh gettin into it .

 

one link for now http://www.journallive.co.uk/north-east-ne...61634-20989122/

 

Erm, isn't that article referring to even earlier accounts than the ones in the OP?

 

The lad who posted the stuff I copied from N-O is an accountant and appears to know his stuff - far more than me, or some guy from The Journal I imagine.

 

It appears to me (from a totally uneducated eye, I admit) that Ashley has put into NUFC almost a quarter of a BILLION pounds of his own money. Does he really deserve the vitriol he gets?

[Asprilla 96]

the original article is full of shit . late cbh gettin into it .

 

one link for now http://www.journallive.co.uk/north-east-ne...61634-20989122/

 

Erm, isn't that article referring to even earlier accounts than the ones in the OP?

 

The lad who posted the stuff I copied from N-O is an accountant and appears to know his stuff - far more than me, or some guy from The Journal I imagine.

 

It appears to me (from a totally uneducated eye, I admit) that Ashley has put into NUFC almost a quarter of a BILLION pounds of his own money. Does he really deserve the vitriol he gets?

That's totally irrelevant as he CHOSE to buy the club in order to make a profit. Nothing more.

 

Since he's taken over though, he's managed to take us to the brink of relegation while feeding us endless lies. No wonder people are pissed off with him.

[ewerk 31195]

the original article is full of shit . late cbh gettin into it .

 

one link for now http://www.journallive.co.uk/north-east-ne...61634-20989122/

 

Erm, isn't that article referring to even earlier accounts than the ones in the OP?

 

The lad who posted the stuff I copied from N-O is an accountant and appears to know his stuff - far more than me, or some guy from The Journal I imagine.

 

It appears to me (from a totally uneducated eye, I admit) that Ashley has put into NUFC almost a quarter of a BILLION pounds of his own money. Does he really deserve the vitriol he gets?

 

I know, so why not throw in another £20m to kick start the team which could then potentially lead to increase TV money, gate receipts and prize money?