Ashley to allow spending spree in summer

[loonyTOON 10]

http://www.guardian.co.uk/football/2010/ap...e-chris-hughton

 

''Mike Ashley, the Newcastle United owner, is willing to sanction a summer spending spree to ensure survival in the Premier League, despite his reluctance to return to the club's high-spending past.

 

Ashley has invested £25m this season to help balance the books of a business that is losing £500,000 a week while in the Championship. However, the billionaire – who is not expected to put the club back up for sale in the summer, after two failed attempts to sell – will stress the need to be prudent to the manager, Chris Hughton.

 

Club officials estimate that promotion will increase Newcastle's income by around £50m or possibly as much as £60m, depending on attendances at St James' Park. Only around half of that will be used for player recruitment. The rest is needed to help restructure the club's finances after a testing 12 months and it is understood Ashley will take back some of the money he has loaned Newcastle this year.

 

Ashley and the club's managing director, Derek Llambias, believe £20m to £25m is a healthy budget for a club looking to consolidate its Premier League position.

 

"Prudent ambition" is the current key phrase at St James' Park, even while the city celebrates the return of top-flight football and survival will be the objective from August. Hughton feels he has the core of a squad which can compete in the Premier League but he will look to improve it where he can. While too good for the Championship, Newcastle still look like they will be vulnerable at the highest level and Hughton is keen to strengthen in defence as well as sign a proven goalscorer, which is where the majority of the transfer war chest will be spent.

 

The sale of players is anticipated, but Hughton has the full backing of Ashley and will continue as manager next season, a challenge "he has more than earned the right to have a crack at", according to the goalkeeper Steve Harper.

 

"It's going to be an interesting summer because there will be changes," Newcastle's Argentina international Jonas Gutiérrez said. "We have gone up with five games to go and I'm sure the manager and the owner will talk about what needs to be done in the summer and where the squad needs to be strengthened.

 

"Some players will leave, some will come in. The important thing is we have the time to make sure the right decisions are made. I want to stay. I'd like to play for a lot of years here at Newcastle. I love this club."

 

For Harper, Newcastle's longest serving player, the main emotion following promotion is relief that the scars of relegation can start to heal.

 

He said: "The memories from Villa Park last May when we were relegated are still pretty vivid, but this more than makes up for it. Last year was desperately disappointing but we're back up now. The mental scars are still there, of course. I'll never forget that, it's something as a player you can never forget. It's a motivation, I'm sure there's a lot of players in the dressing room who have used it as that to achieve what we have."

 

Newcastle secured promotion before their win against Sheffield United on Easter Monday and have switched their attention to winning the Championship title. They are six points clear of West Bromwich Albion with a game in hand, with five matches left to play.''

 

 

What are your thoughts? When I read 'spending spree' I assumed 40-50 mil, but will 20-25 mill do the trick?

[JawD 99]

I would be happy with £20M being spent over and above any sales money that is also re-invested. They key, and I agree to this, is not going out spending £19.5M on a "trophy" signing. We need sensible signings. No headline signings. The aim has to be survival then the season after build again and cement our place in the league once more.

[ewerk 31230]

It is understood Ashley will take back some of the money he has loaned Newcastle this year.

 

I'll be worried if this becomes a recurring action.

[Happy Face 29]

The sale of players is anticipated

[Toonpack 10004]

It is understood Ashley will take back some of the money he has loaned Newcastle this year.

 

I'll be worried if this becomes a recurring action.

 

 

Why ??

 

IF we spent say £20 mill, and he also takes back £20mill thus reducing the club indebtedness (to him) that'd be OK by me tbh

[Happy Face 29]

It is understood Ashley will take back some of the money he has loaned Newcastle this year.

 

I'll be worried if this becomes a recurring action.

 

 

Why ??

 

IF we spent say £20 mill, and he also takes back £20mill thus reducing the club indebtedness (to him) that'd be OK by me tbh

 

Which Premier League clubs run a £40m profit?

[Guest alex]

It is understood Ashley will take back some of the money he has loaned Newcastle this year.

 

I'll be worried if this becomes a recurring action.

 

 

Why ??

 

IF we spent say £20 mill, and he also takes back £20mill thus reducing the club indebtedness (to him) that'd be OK by me tbh

Would you like to buy some magic beans?

[Ayatollah Hermione 14078]

The sale of players is anticipated

 

I hope this is more along the lines of Pancrate/Ryan Taylor rather than Enrique.

[ChezGiven 0]

It is understood Ashley will take back some of the money he has loaned Newcastle this year.

 

I'll be worried if this becomes a recurring action.

 

 

Why ??

 

IF we spent say £20 mill, and he also takes back £20mill thus reducing the club indebtedness (to him) that'd be OK by me tbh

 

Which Premier League clubs run a £40m profit?

 

None after the adjustment period but thats not the point. Which premier league club is about to experience a minimum of 40m additional revenue next season?

 

The club is in debt. The club reduces costs. The club gets significantly more revenue. Ergo, some of the debt gets paid back.

 

Has everyone forgotten why we wanted to be promoted? The premiership IS the prize.

[Happy Face 29]

The sale of players is anticipated

 

I hope this is more along the lines of Pancrate/Ryan Taylor rather than Enrique.

 

Pancrate's out of contract so can't be sold (along with Butt and One Size).

 

What with Ryan Taylor being shite I can't see many takers there. I'd hope it's just Taylor, Xisco and Ameobi. I fear it'll be more.

[Guest alex]

Shola'll never leave Newcastle man

[Ayatollah Hermione 14078]

The sale of players is anticipated

 

I hope this is more along the lines of Pancrate/Ryan Taylor rather than Enrique.

 

Pancrate's out of contract so can't be sold (along with Butt and One Size).

 

What with Ryan Taylor being shite I can't see many takers there. I'd hope it's just Taylor, Xisco and Ameobi. I fear it'll be more.

 

I thought Pancrate was on a longer contract? I'll take your Paul Joannou-esque word on it I assume we'll see the back of Taylor and Xisco, aye but Shola's going to be here until he retires. We'll never shake him. As for Ryan Taylor, I think he's a Championship level player (and not particularly a good one) and providing we don't try and get too much for him, I can see him going. Maybe it's wishful thinking though.

[peasepud 59]

The club is in debt. The club reduces costs. The club gets significantly more revenue. Ergo, some of the debt gets paid back.

 

However we're losing £500k per week according to the same journalists. So that additional £40m will only put you £14m in the black.

 

So how is it feasible to pay out £20m on players and £20m to Fatty? That would put you £26m in debt wouldnt it?

 

Ergo, we pay £20m off the debt and end up £6m further in the cack???

 

Im no accountant but my breath is baited waiting to see how that ones recorded on the balance sheet

[Happy Face 29]

As for Ryan Taylor, I think he's a Championship level player (and not particularly a good one) and providing we don't try and get too much for him, I can see him going. Maybe it's wishful thinking though.

 

Depends on his current salary. As his move to us was from a premier league club to a premier league club I imagine they're above what many championship clubs would be willing to pay and we're stuck with him for another 3 years.

 

Why he got a four and a half year contract from Ashley is anyone's guess, given all the noises Ashley made prior to that window about players on long term, high paying contracts.

[ewerk 31230]

The club is in debt. The club reduces costs. The club gets significantly more revenue. Ergo, some of the debt gets paid back.

 

 

And the club continues to pay for Ashley's fuck ups.

 

In other clubs such as Chelsea, City, Villa, Sunderland etc. the owners never expected the loans to be paid back and eventually converted those loans into capital. Ashley however, isn't quite as charitable.

[ChezGiven 0]

The club is in debt. The club reduces costs. The club gets significantly more revenue. Ergo, some of the debt gets paid back.

 

However we're losing £500k per week according to the same journalists. So that additional £40m will only put you £14m in the black.

 

So how is it feasible to pay out £20m on players and £20m to Fatty? That would put you £26m in debt wouldnt it?

 

Ergo, we pay £20m off the debt and end up £6m further in the cack???

 

Im no accountant but my breath is baited waiting to see how that ones recorded on the balance sheet

 

I paid very little attention to that 500k a week thing, it could easily reflect the revenue minus costs before the parachute payment, which is a special item on the P&L. It may also have been rounded up a bit too, since a bit less than that is about 20m per year. Which is the figure i would expect before the parachute payment.

 

As other have said, the increased spend has to take account of the increase in wages etc so its not that clear how much is available. Birmingham and Wolves do offer some insight to what is feasible to spend but i doubt they had the same debts as us.

[JawD 99]

The club is in debt. The club reduces costs. The club gets significantly more revenue. Ergo, some of the debt gets paid back.

 

However we're losing £500k per week according to the same journalists. So that additional £40m will only put you £14m in the black.

 

So how is it feasible to pay out £20m on players and £20m to Fatty? That would put you £26m in debt wouldnt it?

 

Ergo, we pay £20m off the debt and end up £6m further in the cack???

 

Im no accountant but my breath is baited waiting to see how that ones recorded on the balance sheet

 

My thoughts exactly.

 

If we do stretch it to £60M extra revenue. Less the £25M losses we are making now less £20M per year to MA leaves £15M. But, then factor in wages at say £20Kpw = approx 1M. So, if we want to increase the squad by 5 you might as well drop that £15M to £10M per year on players.

 

Ish.

[ewerk 31230]

The club is in debt. The club reduces costs. The club gets significantly more revenue. Ergo, some of the debt gets paid back.

 

However we're losing £500k per week according to the same journalists. So that additional £40m will only put you £14m in the black.

 

So how is it feasible to pay out £20m on players and £20m to Fatty? That would put you £26m in debt wouldnt it?

 

Ergo, we pay £20m off the debt and end up £6m further in the cack???

 

Im no accountant but my breath is baited waiting to see how that ones recorded on the balance sheet

 

 

I'm near certain that the 500k pw figure is another Ashley propagated myth.

[Flair 0]

If our income goes up by £60million. Ashley takes his £25million, leaving us with £35million. £25million goes to cover the costs at the club for next season which means £10million is left for transfers for next season.

 

The likes of Pancrate, Butt, Nolan/Smith, Taylor, Ameobi being sold may reduce the wage bill and give us £15-20million extra to spend. So I get the impression we will be seeing around £25million to £30million in transfers (and wages for new players ofcourse).

[brummiemag1 0]

If Ashley is serious about making Newcastle a force to be reckoned with in a few years time then as a minimum I would expect him to invest at least £20 million net on players. Ashley needs to sell up or if he is staying then he needs to make a statement of intent by investing in players. The alternative is year after year of scraping about in the lower reaches of the Premier league playing crap defensive football

 

We have the core of a decent team already, (Harper,Enrique, Colli, Barton, Jonas and Carol) so £20+ million on 3 or 4 quality players and theres no reason why we can't finish mid table, playing decent football and maybe with a bit of a cup run thrown in.

[Guest Barrack Road]

The club is in debt. The club reduces costs. The club gets significantly more revenue. Ergo, some of the debt gets paid back.

 

 

And the club continues to pay for Ashley's fuck ups.

 

In other clubs such as Chelsea, City, Villa, Sunderland etc. the owners never expected the loans to be paid back and eventually converted those loans into capital. Ashley however, isn't quite as charitable.

He's a greedy fat cunt. I know he hasn't got £900m cash, but he could easy just say look sorry lads, will you pipe down if I just give the club £100m no questions asked, and some of us would. I mean what's he going to do with all that money. I wouldn't even want £900m. I'd sell my businesses and enjoy my life and pump it all in to good causes, and the toon. Greedy cunt.

[Toonpack 10004]

The club is in debt. The club reduces costs. The club gets significantly more revenue. Ergo, some of the debt gets paid back.

 

However we're losing £500k per week according to the same journalists. So that additional £40m will only put you £14m in the black.

 

So how is it feasible to pay out £20m on players and £20m to Fatty? That would put you £26m in debt wouldnt it?

 

Ergo, we pay £20m off the debt and end up £6m further in the cack???

 

Im no accountant but my breath is baited waiting to see how that ones recorded on the balance sheet

 

 

I was being hypothetical, the figures, pulled out of the air, to illustrate a point. Didn't expect to be audited

[Christmas Tree 4857]

What you are not factoring in is the Managers perspective. (Not that I've played football manager)

 

But if I was the manager (and not a fan) and knew that money was going to be tight then that is when you wheel and deal.

 

Hughton might decide to cash in on Colochini, make do with Taylor and williamson for now and decide to make better use of the Colochini money and wages.

 

After all he crumbled quite a bit last year in the prem so if we can cash in now AND better re-invest the money then that would be good business.

 

Sadly the same may go for Krul and a few others.

 

As a manager I would be looking and saying which is the absolute core of my team that I cant be without and which ones can increase my transfer kitty.

 

As a manager I think Enrique would be untouchable, everyone else would be available at the right price (as long as I had identified alternatives).

[Happy Face 29]

It is understood Ashley will take back some of the money he has loaned Newcastle this year.

 

I'll be worried if this becomes a recurring action.

 

 

Why ??

 

IF we spent say £20 mill, and he also takes back £20mill thus reducing the club indebtedness (to him) that'd be OK by me tbh

 

Which Premier League clubs run a £40m profit?

 

None after the adjustment period but thats not the point. Which premier league club is about to experience a minimum of 40m additional revenue next season?

 

The club is in debt. The club reduces costs. The club gets significantly more revenue. Ergo, some of the debt gets paid back.

 

Has everyone forgotten why we wanted to be promoted? The premiership IS the prize.

 

If they were bank loans they'd HAVE to be repaid with interest, so i've no problem with that.

 

Shepherd would go on a spending spree, then he was frugal the to pay off some debt (we ran transfer profits in 1997, 2000 and 2004) you can't buy year on year.

 

I just don't expect us to be spending £20 million on players AND paying off £20m of loans AND retaining our best players AND running a balanced book.

[NJS 4411]

He's a greedy fat cunt. I know he hasn't got £900m cash, but he could easy just say look sorry lads, will you pipe down if I just give the club £100m no questions asked, and some of us would. I mean what's he going to do with all that money. I wouldn't even want £900m. I'd sell my businesses and enjoy my life and pump it all in to good causes, and the toon. Greedy cunt.

 

It's strange how only a few people think like this - I was just sayiing last week that if someone gave me £900m I'd give NUFC at least half of it, possibly more and was looked at as if I was an Alien. The response was that you should enjoy your wealth which seemed to involve investing it and checking to see whether it grows rather than spending it - madness.

 

 

On the "spree" if someone wants to do an N-O style how much will the net spend be in the summer poll, I'll vote for less than zero - especially if Guttirez has a decent world cup.