Take administration now.

[Park Life 71]

We still owe £5m transfer fee.

We're paying him between 60k and 80k a week depending on which report you believe.

When we sell him we'll have to pay a loyalty bonus which seems to be 10% of yearly wages.

Even if we get a decent price we won't make any money on him.

That's just one case.

 

So if we go into administration what happens? Do you reckon Deportivo are going to let us off without paying them? Or are you suggesting we should go into liquidation?

 

I don't know the exact ins and outs but Leeds got protection from creditors reg monies owed I imagine Depor will have to take a reduced amount. On the other hand sitting on our hands like MA is and no word about Shearer isn't helping us as the ongoing costs build up and MA has stated a couple of times he isn't putting any money in. Calling in administration last week of July will I imagine be much worse than doing it now.

 

Leeds entered into a CVA because creditors knew it was the best they could get, that's not the case with us.

 

Faced with getting nowt how would it be different with us? As I say I'm not an expert and am curious as to how things will pan out.

[The Fish 11068]

It seems completely unnecessary to be honest.

 

So, where's the money coming from?

 

 

The new Owner.

 

Scrooge McDuck

[Park Life 71]

Took a 100m of MA's money LAST YEAR to keep us going....

Newcastle United club accounts reveal state of play

Jan 23 2009 by Adam Jupp, The Journal

 

THE state of Newcastle United’s finances since Mike Ashley’s takeover are revealed for the first time in the club’s latest accounts.

 

They show the sports retail tycoon has kept the Magpies afloat with a £100m loan, which would have to be paid back to him by any future new owner.

 

The Journal understands Ashley is not charging any interest on the loan and has also recently pumped £10m of his own money into the clubs’ coffers to help with running costs.

 

But it has also emerged United’s wage bill, including players, directors and other staff, has shot up by nearly £5m to just under £70m.

 

That swallows-up around 70% of the company’s annual revenue, a situation football finance experts last night voiced concerns over.

 

And, had it not been for the £6.5m the club received in compensation for striker Michael Owen’s World Cup knee injury, the balance sheet would have looked even worse last year.

 

Richard Slack, principal lecturer in accounting and finance at Newcastle Business School, Northumbria University, said: “Newcastle is continuing as a going concern and that is largely based on a £100m loan that has been paid in by Mike Ashley, on which no interest is being charged.

 

“That would be payable on demand if the control of the club was to change. So, any would-be buyer, as well as paying the asking price for the club, would have to secure a re-financing deal to ensure the on-going commercial viability of Newcastle United.

 

“And looking at the accounts, you are talking about £100m being needed, or more. The reason I say ‘or more’ is that the wage costs is 70% of total revenue, which is high.

 

“This is in the context of being out of the FA Cup in the third round, out of the League Cup in the early rounds, no European football on the horizon, season-ticket sales probably down and, of course, looking to the future, they are not immune from relegation, which would of course severely impact on their top line.

 

“So, they are very reliant on that £100m.”

[The Fish 11068]

This is old Parky and after this was reported it's been stated that he's going to forgo the £100m

[ewerk 31586]

We still owe £5m transfer fee.

We're paying him between 60k and 80k a week depending on which report you believe.

When we sell him we'll have to pay a loyalty bonus which seems to be 10% of yearly wages.

Even if we get a decent price we won't make any money on him.

That's just one case.

 

So if we go into administration what happens? Do you reckon Deportivo are going to let us off without paying them? Or are you suggesting we should go into liquidation?

 

I don't know the exact ins and outs but Leeds got protection from creditors reg monies owed I imagine Depor will have to take a reduced amount. On the other hand sitting on our hands like MA is and no word about Shearer isn't helping us as the ongoing costs build up and MA has stated a couple of times he isn't putting any money in. Calling in administration last week of July will I imagine be much worse than doing it now.

 

Leeds entered into a CVA because creditors knew it was the best they could get, that's not the case with us.

 

Faced with getting nowt how would it be different with us? As I say I'm not an expert and am curious as to how things will pan out.

 

But they'll not get nowt, they'd sue us for what they were owed, not to mention that it's terrible business practice and would mean that any future transfers would have to be paid for up front.

 

Didn't the £100m you mention go largely towards paying off existing long-term debts? Such as the money owed on the ground when the Halls sold up.

[Guest alex]

I think it's one of those things Parky can't get his head round. Like hip hop.

[Park Life 71]

This is old Parky and after this was reported it's been stated that he's going to forgo the £100m

 

I know this.

 

My point being he had to stump it up while we were in the PL.

[Ketsbaia 0]

This thread makes no sense

[Park Life 71]

We still owe £5m transfer fee.

We're paying him between 60k and 80k a week depending on which report you believe.

When we sell him we'll have to pay a loyalty bonus which seems to be 10% of yearly wages.

Even if we get a decent price we won't make any money on him.

That's just one case.

 

So if we go into administration what happens? Do you reckon Deportivo are going to let us off without paying them? Or are you suggesting we should go into liquidation?

 

I don't know the exact ins and outs but Leeds got protection from creditors reg monies owed I imagine Depor will have to take a reduced amount. On the other hand sitting on our hands like MA is and no word about Shearer isn't helping us as the ongoing costs build up and MA has stated a couple of times he isn't putting any money in. Calling in administration last week of July will I imagine be much worse than doing it now.

 

Leeds entered into a CVA because creditors knew it was the best they could get, that's not the case with us.

 

Faced with getting nowt how would it be different with us? As I say I'm not an expert and am curious as to how things will pan out.

 

But they'll not get nowt, they'd sue us for what they were owed, not to mention that it's terrible business practice and would mean that any future transfers would have to be paid for up front.

 

Didn't the £100m you mention go largely towards paying off existing long-term debts? Such as the money owed on the ground when the Halls sold up.

 

47m went on that. I don't really know where he needed the other 50 odd million to plug things.

 

2002 EU law ammendments (I'll see if I can find it) is much more inclined to protect companies such as our in duress than ever before, so the protection we'd get is high. In the sense that it is better in the long term for our business to survive and thrive in the future than go down.

[The Fish 11068]

This is old Parky and after this was reported it's been stated that he's going to forgo the £100m

 

I know this.

 

My point being he had to stump it up while we were in the PL.

 

 

... right. So he paid it then and if we'd stayed up he may have tried to wrangle it out of prospective buyers, but we're not worth £100m now, so no amount of wranglnig will get the buyers to py it, he knows this so he's torn up that debt.

 

in addition to running costs and transfers still to be paid, there's that Barclays overdraft... and I'm not sure what else.

 

He'll take £75m and run for the hills I reckon.

[Park Life 71]

This thread makes no sense

 

We owe fuck loads of money on players and wages and all sorts AND now we have NO money and an owner who refuses to put anymore in and the chairman has had his car taken away.....Wake up!!

 

 

[Park Life 71]

This is old Parky and after this was reported it's been stated that he's going to forgo the £100m

 

I know this.

 

My point being he had to stump it up while we were in the PL.

 

 

... right. So he paid it then and if we'd stayed up he may have tried to wrangle it out of prospective buyers, but we're not worth £100m now, so no amount of wranglnig will get the buyers to py it, he knows this so he's torn up that debt.

 

in addition to running costs and transfers still to be paid, there's that Barclays overdraft... and I'm not sure what else.

 

He'll take £75m and run for the hills I reckon.

 

Agreed.

 

I wish he was just asking 50m for the club to speed things up.

 

Villa went for 62m and Pompey for about 20m.

[ewerk 31586]

47m went on that. I don't really know where he needed the other 50 odd million to plug things.

 

£47m went on what?

[Park Life 71]

47m went on that. I don't really know where he needed the other 50 odd million to plug things.

 

£47m went on what?

 

Look it up ffs!

 

47m became due when ownership changed hands something FFS had written in.

[Isegrim 10017]

Tbh the gibberish from Parky about administration sounds like a blind man talking about colours.

[The Fish 11068]

This is old Parky and after this was reported it's been stated that he's going to forgo the £100m

 

I know this.

 

My point being he had to stump it up while we were in the PL.

 

 

... right. So he paid it then and if we'd stayed up he may have tried to wrangle it out of prospective buyers, but we're not worth £100m now, so no amount of wranglnig will get the buyers to py it, he knows this so he's torn up that debt.

 

in addition to running costs and transfers still to be paid, there's that Barclays overdraft... and I'm not sure what else.

 

He'll take £75m and run for the hills I reckon.

 

Agreed.

 

I wish he was just asking 50m for the club to speed things up.

 

Villa went for 62m and Pompey for about 20m.

 

 

Thing is, if he's asking £100, he'll be offered £75, if he was asknig £50m he'd be offered £35m I don't think the time is going to be affected by the price-tag. It's just making sure the backroom stuff is in order. Hopefully that'll be Mort's parting gift, leaving us in less of a shambles than we were under Shepherd.

 

(out of curiosity, if Ashley hadn't needed to throw £100m at hidden debts, do you reckon he'd have thrown that kind of cash at the transfer market?)

[Park Life 71]

Tbh the gibberish from Parky about administration sounds like a blind man talking about colours.

 

If Ashley said he was committed to putting more money in then that would be true. The club is currently costing about 20m every 3 months to run, even if we halve that without PL money it will still be dodgy for us.

 

If you did a bit of research you'd see even selling ALL the players will make very little difference as we still owe money on the big ones like Oba and Colo.

 

We're getting nothing from Viduka, Owen, Butt, Cacapa etc....

[Park Life 71]

This is old Parky and after this was reported it's been stated that he's going to forgo the £100m

 

I know this.

 

My point being he had to stump it up while we were in the PL.

 

 

... right. So he paid it then and if we'd stayed up he may have tried to wrangle it out of prospective buyers, but we're not worth £100m now, so no amount of wranglnig will get the buyers to py it, he knows this so he's torn up that debt.

 

in addition to running costs and transfers still to be paid, there's that Barclays overdraft... and I'm not sure what else.

 

He'll take £75m and run for the hills I reckon.

 

Agreed.

 

I wish he was just asking 50m for the club to speed things up.

 

Villa went for 62m and Pompey for about 20m.

 

 

Thing is, if he's asking £100, he'll be offered £75, if he was asknig £50m he'd be offered £35m I don't think the time is going to be affected by the price-tag. It's just making sure the backroom stuff is in order. Hopefully that'll be Mort's parting gift, leaving us in less of a shambles than we were under Shepherd.

 

(out of curiosity, if Ashley hadn't needed to throw £100m at hidden debts, do you reckon he'd have thrown that kind of cash at the transfer market?)

 

It was interesting there was so much talk about FFS coming back in which seems and I agree with you that 70-80m might be enough.

 

Regarding the second bit I think he would have spent more on transfers say 10-15m net a season, but looking at his modus operandi I don't think he would have spent 50m on players or something like that (which he needed to as we now see).

[ewerk 31586]

Parky, our loss before amortisation, player trading and exceptional items was £2.2 million. We're in trouble but we're not on our knees.

[Isegrim 10017]

Tbh the gibberish from Parky about administration sounds like a blind man talking about colours.

 

If Ashley said he was committed to putting more money in then that would be true. The club is currently costing about 20m every 3 months to run, even if we halve that without PL money it will still be dodgy for us.

 

If you did a bit of research you'd see even selling ALL the players will make very little difference as we still owe money on the big ones like Oba and Colo.

 

We're getting nothing from Viduka, Owen, Butt, Cacapa etc....

Though, both insolvency law as well as the financial state of the club are much more complex than you are trying to imply. You make it look as if the threat of liquidation is imminent even though it is not even clear if the club really is insolvent and therefore entitled to apply for administration and the need of protection from creditors.

 

Alternatively we can also talk about the possibility of the club getting taken over by aliens. What is probably more your field of knowledge.

 

Edited June 15, 2009 by Isegrim

[Park Life 71]

Tbh the gibberish from Parky about administration sounds like a blind man talking about colours.

 

If Ashley said he was committed to putting more money in then that would be true. The club is currently costing about 20m every 3 months to run, even if we halve that without PL money it will still be dodgy for us.

 

If you did a bit of research you'd see even selling ALL the players will make very little difference as we still owe money on the big ones like Oba and Colo.

 

We're getting nothing from Viduka, Owen, Butt, Cacapa etc....

Though, both insolvency law as well as the financial state of the club are much more complex than you are trying to implicate. You make it look as if the threat of liquidation is imminent even though it is not even clear if the club really is insolvent and therefore entitled to apply for administration and the need of protection from creditors.

 

Alternatively we can also talk about the possibility of the club getting taken over by aliens. What is probably more your field of knowledge.

 

 

 

I don't know man, but things look serious to me.

 

People talking about buying Sykbred or whatever on N.O. are in a pure state of delusion.

[peasepud 59]

I dont know why it is a good thing for Ashley but I do believe that he has contemplated it already. When I was originally told the stuff about Administration being imminent if we went down it came from not one but two seperate credible sources.

 

The story was then broken nearly two weeks later by Alan Oliver, as Ive said previously in a different thread, I cant see what had changed football wise on Sunday March 29th to suddenly make Ashley call up Shearer. We hadnt had a game for a week so its not like we got tonked the day before and he finally woke up. I personally believe its too coincidental, the timing of us suddenly wanting to stay up enough to beg Shearer being the same day as this story.

 

Again though, what he achieves I dont know, from everything Ive read all football debts must be paid in full, thats players contracts, outstanding transfer fees the lot. After that comes the other creditors including the taxman.

 

What does worry me is that we know Ashley is refusing any money out of the club, not even for petty cash, coffee in the meetings, anything. Its a fair bet then that the club is living on its credit rating, as seen by the reposession of Llambias car. How many months of non-payment does it take before they reposess a car? what about the hotel costs for players, Llambias and others etc? local companies who were more than happy to supply the temporary staff, catering supplies etc under the belief that there was no way a business as high profile as the football club would default on their payments.

 

The rumour months ago was that Mort had to come her personally and demand the money that was owed to Freshfields as it hadnt been paid months after it was due.

 

Could it be that every single penny that would have gone to pay other bills has instead gone to paying off the debt to SJ Holdings?

If so, just how much of that £100m is still outstanding?

How much of it went in that mortgage we found back in November?

What about the January transfers? is it possible that the likes of Given were now owned by say SJ Holdings and therefore any payment is due to them and not NUFC?

 

I havent got a clue on the answers above but the potential for these and a lot more worry me shitless.

[Park Life 71]

I dont know why it is a good thing for Ashley but I do believe that he has contemplated it already. When I was originally told the stuff about Administration being imminent if we went down it came from not one but two seperate credible sources.

 

The story was then broken nearly two weeks later by Alan Oliver, as Ive said previously in a different thread, I cant see what had changed football wise on Sunday March 29th to suddenly make Ashley call up Shearer. We hadnt had a game for a week so its not like we got tonked the day before and he finally woke up. I personally believe its too coincidental, the timing of us suddenly wanting to stay up enough to beg Shearer being the same day as this story.

 

Again though, what he achieves I dont know, from everything Ive read all football debts must be paid in full, thats players contracts, outstanding transfer fees the lot. After that comes the other creditors including the taxman.

 

What does worry me is that we know Ashley is refusing any money out of the club, not even for petty cash, coffee in the meetings, anything. Its a fair bet then that the club is living on its credit rating, as seen by the reposession of Llambias car. How many months of non-payment does it take before they reposess a car? what about the hotel costs for players, Llambias and others etc? local companies who were more than happy to supply the temporary staff, catering supplies etc under the belief that there was no way a business as high profile as the football club would default on their payments.

 

The rumour months ago was that Mort had to come her personally and demand the money that was owed to Freshfields as it hadnt been paid months after it was due.

 

Could it be that every single penny that would have gone to pay other bills has instead gone to paying off the debt to SJ Holdings?

If so, just how much of that £100m is still outstanding?

How much of it went in that mortgage we found back in November?

What about the January transfers? is it possible that the likes of Given were now owned by say SJ Holdings and therefore any payment is due to them and not NUFC?

 

I havent got a clue on the answers above but the potential for these and a lot more worry me shitless.

 

Some sanity in the thread at last.

 

I personally believe the club is in very serious trouble and without looking I'm absolutely sure Ashley has been upto no good whatsoever the last few weeks.

 

Ken Bates iirc went into voluntary admin with one company that owned Leeds and they bought it back with a newly created vehicle for that purpose. This manouvre has been studies to this day with regard to its legality. These guys can get upto all sorts.

Edited June 15, 2009 by Park Life

[Fop 1]

Makes no sense considering Ashley is our main creditor.

 

It happens when they just want to write off debts rather than digging themselves deeper, it's actually pretty similar to what initially happened to Darlington FC.

 

 

Which is why it's been hanging over us since relegation, and one of the potential reasons for relegation to be such a nightmare.

 

 

You'd have to hope that Assley would want to keep the club going and hope for a decent sale, but given that he's acted like a fuck wit in every other decision he's made regarding NUFC, administration is probably quite likely now.

[The Fish 11068]

I dont know why it is a good thing for Ashley but I do believe that he has contemplated it already. When I was originally told the stuff about Administration being imminent if we went down it came from not one but two seperate credible sources.

 

The story was then broken nearly two weeks later by Alan Oliver, as Ive said previously in a different thread, I cant see what had changed football wise on Sunday March 29th to suddenly make Ashley call up Shearer. We hadnt had a game for a week so its not like we got tonked the day before and he finally woke up. I personally believe its too coincidental, the timing of us suddenly wanting to stay up enough to beg Shearer being the same day as this story.

 

Again though, what he achieves I dont know, from everything Ive read all football debts must be paid in full, thats players contracts, outstanding transfer fees the lot. After that comes the other creditors including the taxman.

 

What does worry me is that we know Ashley is refusing any money out of the club, not even for petty cash, coffee in the meetings, anything. Its a fair bet then that the club is living on its credit rating, as seen by the reposession of Llambias car. How many months of non-payment does it take before they reposess a car? what about the hotel costs for players, Llambias and others etc? local companies who were more than happy to supply the temporary staff, catering supplies etc under the belief that there was no way a business as high profile as the football club would default on their payments.

 

The rumour months ago was that Mort had to come her personally and demand the money that was owed to Freshfields as it hadnt been paid months after it was due.

 

Could it be that every single penny that would have gone to pay other bills has instead gone to paying off the debt to SJ Holdings?

If so, just how much of that £100m is still outstanding?

How much of it went in that mortgage we found back in November?

What about the January transfers? is it possible that the likes of Given were now owned by say SJ Holdings and therefore any payment is due to them and not NUFC?

 

I havent got a clue on the answers above but the potential for these and a lot more worry me shitless.

 

Some sanity in the thread at last.

 

I personally believe the club is in very serious trouble and without looking I'm absolutely sure Ashley has been upto no good whatsoever the last few weeks.

 

Ken Bates iirc went into voluntary admin with one company that owned Leeds and they bought it back with a newly created vehicle for that purpose. This manouvre has been studies to this day with regard to its legality. These guys can get upto all sorts.

 

As an aside Ashley has opened a discount warehouse in the former home of Burberry, on Haymarket in london. The store, selling sports goods for as little as £1, is set to anger Crown Estate, which blocked TK Maxx's bid to open up in Piccadilly Circus because it was deemed too tacky.

 

He's just a fat chav