Bizza 105 Posted October 28, 2005 Share Posted October 28, 2005 United profits drop Oct 28 2005 By The Evening Chronicle Profits at Newcastle United have almost halved in the last year. They have fallen to £4.5m compared with £8.8m in 2004. A 12% increase in wages is largely to blame for the fall after the bill rose from £44.9m to £50.2m. The £16m signing of Michael Owen is not included in the accounts. Despite the fall the club has decided to pay out almost £4m to shareholders. For the first time in five years shareholders will be able to decide if they will take the dividend in cash or in club shares. Already chairman Freddy Shepherd has said he will take £650,000 in shares. While director Douglas Hall's Cameron Hall and other family holdings have also agreed to take their £1.8m in shares. Mr Shepherd said the small profits reflect the club not being in the Champions League last year. "We have made a small profit and that is the main thing. We lost revenue mainly in Europe and not being in the Champions League. "The small profit made comes alongside the investments we have made, which is a very good thing." Television and broadcasting revenues were also down by 17%, reflecting reduced amounts being paid under a new contract with Sky and reduced merit payments following the team's 14th place in the FA Premier League. Cash invested in new players, including Stephen Carr, Chares N'Zogbia, Jean-Alain Boumsong, Amady Faye and Celestine Babayaro, helped eat into the profits. The wage cost has now risen to 58% of turnover compared to a figure just over 50% last year. Newcastle has always tried to keep wages below half of their annual turnover. Mr Shepherd said: "If you strike out the external costs it is 55%, which is still higher than we were last year but still better than a lot of other clubs. "We hope it will be lower next year but it is impossible to know. It's all based on results." Television and broadcasting revenues were also down by 17% reflecting reduced amounts being paid under a new contract with Sky and reduced merit payments following the team's 14th place in the FA Premier League. The books also suffered from a decrease in branded product sales to £7.6m. The fall is blamed on difficult market conditions in the retail market and lack of a new team shirt launch. Match revenues at the club have gone up 4% from £33.9m to £35.5m due to three additional home games. Sponsorship revenue is also up by 1% after a new agreement with Adidas came into affect in June. A new improved contract with Northern Rock will be included in next year's accounts. The club's catering arm saw revenue up by 28% to £6.8m. The catering division hosted 2,152 non-match day functions and it now represents 8% of United's turnover. Increasing their strangle hold on the club I see. Link to comment Share on other sites More sharing options...
Optimistic Nut 188 Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? Link to comment Share on other sites More sharing options...
Guest alex Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? 50558[/snapback] Great example Link to comment Share on other sites More sharing options...
Renton 21985 Posted October 28, 2005 Share Posted October 28, 2005 What's wrong with that? As a fan, I'd sooner watch Solano, Luque & Owen than people that were already here. I don't care what goes on at boardroom level. If worse comes to worse, we sell them on and financially, we're fine. 50553[/snapback] The whole point is we are not financially fine at all. You do know what happened to Leeds United, don't you? I'm not suggesting that's going to happen to us, but I find your naivity incredible. No doubt in the summer you will be looking forward to us signing a £20M striker - well it isn't going to happen. And it pisses me right off the board are rewarding themselves for gross incompetence and under achievement. And I have a right to be pissed off. I just wish some people would open their eyes and see what they are doing to our club, rather that sitting around in their replica shirts thinking everything is fine, whilst being taken for complete mugs. And I haven't even mentioned the very real possibility of declining STs etc. Not everyone is willing to put up with this crap year in, year out. When people finally twig, the balloon will finally pop - maybe this will be a good thing. Link to comment Share on other sites More sharing options...
manc-mag 1 Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? 50558[/snapback] Fuck me gently! Can you imagine the scenes? "Sack the bread, sack the bread, sack the bread!" Link to comment Share on other sites More sharing options...
Renton 21985 Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? 50558[/snapback] Show me another company, in football or anywhere else, that would give this level of dividends despite the fact the company is going down the pan. You won't be able to. NUFC is a joke amongst financiers, not that you would care. Link to comment Share on other sites More sharing options...
Optimistic Nut 188 Posted October 28, 2005 Share Posted October 28, 2005 What's wrong with that? As a fan, I'd sooner watch Solano, Luque & Owen than people that were already here. I don't care what goes on at boardroom level. If worse comes to worse, we sell them on and financially, we're fine. 50553[/snapback] The whole point is we are not financially fine at all. You do know what happened to Leeds United, don't you? I'm not suggesting that's going to happen to us, but I find your naivity incredible. No doubt in the summer you will be looking forward to us signing a £20M striker - well it isn't going to happen. And it pisses me right off the board are rewarding themselves for gross incompetence and under achievement. And I have a right to be pissed off. I just wish some people would open their eyes and see what they are doing to our club, rather that sitting around in their replica shirts thinking everything is fine, whilst being taken for complete mugs. And I haven't even mentioned the very real possibility of declining STs etc. Not everyone is willing to put up with this crap year in, year out. When people finally twig, the balloon will finally pop - maybe this will be a good thing. 50563[/snapback] Difference is, Leeds were going into debt and relying on Champions League money to break even. We've had crap financial results yet have still actually made £4.5m. Link to comment Share on other sites More sharing options...
Shearergol 0 Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? 50558[/snapback] Fuck me gently! Can you imagine the scenes? "Sack the bread, sack the bread, sack the bread!" 50565[/snapback] Gold Link to comment Share on other sites More sharing options...
Craig 6700 Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? 50558[/snapback] Fuck me gently! Can you imagine the scenes? "Sack the bread, sack the bread, sack the bread!" 50565[/snapback] Gold 50570[/snapback] Easy, you'll have Kingsmill on hee complaining that's their brand! Link to comment Share on other sites More sharing options...
Renton 21985 Posted October 28, 2005 Share Posted October 28, 2005 What's wrong with that? As a fan, I'd sooner watch Solano, Luque & Owen than people that were already here. I don't care what goes on at boardroom level. If worse comes to worse, we sell them on and financially, we're fine. 50553[/snapback] The whole point is we are not financially fine at all. You do know what happened to Leeds United, don't you? I'm not suggesting that's going to happen to us, but I find your naivity incredible. No doubt in the summer you will be looking forward to us signing a £20M striker - well it isn't going to happen. And it pisses me right off the board are rewarding themselves for gross incompetence and under achievement. And I have a right to be pissed off. I just wish some people would open their eyes and see what they are doing to our club, rather that sitting around in their replica shirts thinking everything is fine, whilst being taken for complete mugs. And I haven't even mentioned the very real possibility of declining STs etc. Not everyone is willing to put up with this crap year in, year out. When people finally twig, the balloon will finally pop - maybe this will be a good thing. 50563[/snapback] Difference is, Leeds were going into debt and relying on Champions League money to break even. We've had crap financial results yet have still actually made £4.5m. 50568[/snapback] Right. And all that money has gone on dividends virtually. And next year we will earn considerably less, and we have spent a fortune. I'm not going to keep repeating myself any more; if you don't see the problem here that's your problem. Link to comment Share on other sites More sharing options...
Craig 6700 Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? 50558[/snapback] Show me another company, in football or anywhere else, that would give this level of dividends despite the fact the company is going down the pan. You won't be able to. NUFC is a joke amongst financiers, not that you would care. 50566[/snapback] No it's a joke to you... Gemmill is a 'financier' and seems to have an understanding of what's going on! Is he saying it's a joke? Link to comment Share on other sites More sharing options...
Guest alex Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? 50558[/snapback] Fuck me gently! Can you imagine the scenes? "Sack the bread, sack the bread, sack the bread!" 50565[/snapback] Gold 50570[/snapback] Easy, you'll have Kingsmill on hee complaining that's their brand! 50573[/snapback] Beat me to it Link to comment Share on other sites More sharing options...
Renton 21985 Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? 50558[/snapback] Show me another company, in football or anywhere else, that would give this level of dividends despite the fact the company is going down the pan. You won't be able to. NUFC is a joke amongst financiers, not that you would care. 50566[/snapback] No it's a joke to you... Gemmill is a 'financier' and seems to have an understanding of what's going on! Is he saying it's a joke? 50576[/snapback] I'm going from what I have read in the money sections of the broad pages, the FT included. I can't be arsed to find the numerous articles for your benefit, but I would have thought even an idiot could see the latest figures are very worrying. Gemmill is strangely quiet. Link to comment Share on other sites More sharing options...
Gemmill 46027 Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? 50558[/snapback] Show me another company, in football or anywhere else, that would give this level of dividends despite the fact the company is going down the pan. You won't be able to. NUFC is a joke amongst financiers, not that you would care. 50566[/snapback] No it's a joke to you... Gemmill is a 'financier' and seems to have an understanding of what's going on! Is he saying it's a joke? 50576[/snapback] To be fair, I'm only an accountant. The results aren't great but they've certainly dispelled the myth that we can't survive without Champions League football - we're still turning an albeit significantly reduced profit, although it should be noted that that includes a decent profit on disposal of players, which we won't be repeating every year, which is slightly worrying (without those disposals we would have made a loss). I think Renton is being somewhat hysterical with his "the club is going down the pan" comments, but that's just his way of dealing with things. Link to comment Share on other sites More sharing options...
manc-mag 1 Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? 50558[/snapback] Show me another company, in football or anywhere else, that would give this level of dividends despite the fact the company is going down the pan. You won't be able to. NUFC is a joke amongst financiers, not that you would care. 50566[/snapback] No it's a joke to you... Gemmill is a 'financier' and seems to have an understanding of what's going on! Is he saying it's a joke? 50576[/snapback] I'm going from what I have read in the money sections of the broad pages, the FT included. I can't be arsed to find the numerous articles for your benefit, but I would have thought even an idiot could see the latest figures are very worrying. Gemmill is strangely quiet. 50580[/snapback] By 'strangely', you mean 'blisfully', shirley? Link to comment Share on other sites More sharing options...
Asprilla 96 Posted October 28, 2005 Share Posted October 28, 2005 I think Renton is being somewhat hysterical with his "the club is going down the pan" comments, but that's just his way of dealing with things. 50582[/snapback] Link to comment Share on other sites More sharing options...
Guest alex Posted October 28, 2005 Share Posted October 28, 2005 Apparently multiple online personalities is another coping mechanism during times of stress Link to comment Share on other sites More sharing options...
manc-mag 1 Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? 50558[/snapback] Show me another company, in football or anywhere else, that would give this level of dividends despite the fact the company is going down the pan. You won't be able to. NUFC is a joke amongst financiers, not that you would care. 50566[/snapback] No it's a joke to you... Gemmill is a 'financier' and seems to have an understanding of what's going on! Is he saying it's a joke? 50576[/snapback] To be fair, I'm only an accountant. The results aren't great but they've certainly dispelled the myth that we can't survive without Champions League football - we're still turning an albeit significantly reduced profit, although it should be noted that that includes a decent profit on disposal of players, which we won't be repeating every year, which is slightly worrying (without those disposals we would have made a loss). I think Renton is being somewhat hysterical with his "the club is going down the pan" comments, but that's just his way of dealing with things. 50582[/snapback] Clear as mud. Link to comment Share on other sites More sharing options...
NJS 4411 Posted October 28, 2005 Share Posted October 28, 2005 How come some reports say a £9m loss and others a £4.5m profit? Link to comment Share on other sites More sharing options...
Renton 21985 Posted October 28, 2005 Share Posted October 28, 2005 I think Renton is being somewhat hysterical with his "the club is going down the pan" comments, but that's just his way of dealing with things. 50582[/snapback] 50585[/snapback] Dramatic license, what I mean is we are really going to struggle, which is down the pan compared to a couple of years back, in my mind. Next years financial report will be far worse than this; people seem to be oblivious to this. But hey, . Never mind, eh? Link to comment Share on other sites More sharing options...
Gemmill 46027 Posted October 28, 2005 Share Posted October 28, 2005 Do people who like Warburton's bread whinge when their major shareholders take out a dividend at the end of the financial year? 50558[/snapback] Show me another company, in football or anywhere else, that would give this level of dividends despite the fact the company is going down the pan. You won't be able to. NUFC is a joke amongst financiers, not that you would care. 50566[/snapback] No it's a joke to you... Gemmill is a 'financier' and seems to have an understanding of what's going on! Is he saying it's a joke? 50576[/snapback] To be fair, I'm only an accountant. The results aren't great but they've certainly dispelled the myth that we can't survive without Champions League football - we're still turning an albeit significantly reduced profit, although it should be noted that that includes a decent profit on disposal of players, which we won't be repeating every year, which is slightly worrying (without those disposals we would have made a loss). I think Renton is being somewhat hysterical with his "the club is going down the pan" comments, but that's just his way of dealing with things. 50582[/snapback] Clear as mud. 50587[/snapback] I'm pitching this to those of average intelligence and above, mate. I'll put something a bit simpler together for you later. Link to comment Share on other sites More sharing options...
Gemmill 46027 Posted October 28, 2005 Share Posted October 28, 2005 I think Renton is being somewhat hysterical with his "the club is going down the pan" comments, but that's just his way of dealing with things. 50582[/snapback] 50585[/snapback] Dramatic license, what I mean is we are really going to struggle, which is down the pan compared to a couple of years back, in my mind. Next years financial report will be far worse than this; people seem to be oblivious to this. But hey, . Never mind, eh? 50589[/snapback] Seriously though, you are right about the dividend issue. Last year they pretty much cleared out the remainder of the profit with a dividend payment of 3.95m, to bring us down to a breakeven point. This year we were already in a small loss position prior to any dividend being paid, but they've paid themselves the same 3.95m. Ridiculous really. And yep, next year's results will definitely be worse. Link to comment Share on other sites More sharing options...
Howaythelads 0 Posted October 28, 2005 Share Posted October 28, 2005 As I've been saying for a while now, if Mr Souness takes the club to relegation the club will go to the wall. That's how serious his mismanagment is. Link to comment Share on other sites More sharing options...
Guest alex Posted October 28, 2005 Share Posted October 28, 2005 I don't think relegation is a genuine posibility tbh. Link to comment Share on other sites More sharing options...
Howaythelads 0 Posted October 28, 2005 Share Posted October 28, 2005 I don't think relegation is a genuine posibility tbh. 50595[/snapback] I'm not saying it's a certainty, Alex, but only a fool considers it to be out the question. Where are the goals coming from? We only have one striker who is up to it at PL level and he is struggling to maintain fitness. The last time I mentioned this the replies were along the lines of, " we won't go down because there are worse teams than us.....Wigan, West Ham, Blackburn, WBA and Sunderland ". Well I think it's a genuine possibility we won't finish above all of those teams others have mentioned in the past. It's just as well Everton have found their level after last seasons fluke. Link to comment Share on other sites More sharing options...
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