£111million

[sammynb 3508]

In a nutshell (from quayside on NO):

 

Turnover was £86 million (all 3 areas of revenue matchday, media and commercial were down on the previous year)

 

Wages (including Keegan's £2.2m payoff) £73m

 

Profit on transfers £23m

 

Other costs £51m

 

Therefore the Loss = £15m so it was an improvement on 2008 but, due to the fall in turnover, not a massive one.

 

As at 30th June Ashley had loaned £111m making his investment a total of £247m. He took no money out in interest. At one point in the year his loan was up to £112m.

 

Imagine what the next set of accounts are going to be like - drop in turnover will be at least £25m tho' some high earners were ditched - its going to be a bloodbath ! The wage bill is still huge, and MA could be looking at a huge loss despite winning the CCC with average gates of 42,000.

 

The fact is that there are still too many players on ludicrous wages of between £40m and £65m - Enrique,Nolan, Smith, Barton, Colocinni, Gutierrez - they alone take around £18m out of whatever the turnover figure is !! Butt's £40k plus wages are soon to be off the books, but then there are lads on £20k/£30k per week like Saylor, Harper, Ameobi and Lovenkrands.

 

Absolutely mental.

 

No fucking way Lovenkrands is on 20k a week. No fucking way.

As for Enrique, Colocinni, Gutierrez bet you they will be gone before the end of August.

[adios 717]

While you were having a little chortle you could explain your amusement. I see little difference with what I or matt have said, only he expresses it better and seems to have a working knowledge of brokering this type of business deal.

 

 

No-one is going to buy the club with £100m repayable on demand. It would have to be settled or restructured

 

The difference is, Matt's statement makes total sense, yours is a pretty funny analogy.

 

Ashley, a legal entity, has lent Newcastle, another legal entity, money. Newcastle has a legal obligation to Ashley. You've made an investment in something which should increase it's value, but if you've made a bad decision, tough shit. Are you planning on taking yourself to court over the cost of the curtains?

Edited May 2, 2010 by to dumb

[adios 717]

Don't let his patter fool you, he gets confused easily

 

Is that aimed at me?

[The Fish 10965]

Don't let his patter fool you, he gets confused easily

 

Is that aimed at me?

It wasn't, but apparently it should have been.

 

[adios 717]

thought it was a bit random like.

[Rob W 0]

Maybe we could ask Mrs Merkel for a sub....................

[peasepud 59]

I think regardless of whether the debt will be there if the club is sold or how/ when it has to be repaid we can finally put to bed this ridiculous belief that we are a more financially sound business than we were pre-Ashley.

[PaddockLad 17654]

I think regardless of whether the debt will be there if the club is sold or how/ when it has to be repaid we can finally put to bed this ridiculous belief that we are a more financially sound business than we were pre-Ashley.

 

Well it depends on how you look at it.....Ashley, and this is the only good thing I can say about him, hasnt borrowed a penny that he has put into NUFC.

 

Maybe the fact that he's had to put £111 million into the club should raise the blinkers from some folks eyes....we may have had a couple of FA cup final appearances and and half a dozen great results in the group stages of the champions league to look back fondly upon, but what has been the real price of that to the club?...maybe we were heading for the second division all along, maybe there was always going to be a huge financial reckoning at the club at some point.

 

If the Halls hadnt forced Shep's hand while he was lying in hospital where would we be now?...I'm not saying for a minute Ashley has been good for the club, but a £111 mill "loan"?....I know little of the financial world, but what the fuck has been going on? Is that the bill just to run the club in the last 3 years or was that to take care of the mess it was in when Shep departed? or both? does it include transfer fees paid out? or do the figures not give a strict breakdown of what its gone on?

[ChezGiven 0]

Maybe we could ask Mrs Merkel for a sub....................

 

A German sub?

 

Isnt that referred to as a u-boat?

[Problem Child 0]

I think regardless of whether the debt will be there if the club is sold or how/ when it has to be repaid we can finally put to bed this ridiculous belief that we are a more financially sound business than we were pre-Ashley.

 

Well it depends on how you look at it.....Ashley, and this is the only good thing I can say about him, hasnt borrowed a penny that he has put into NUFC.

 

Maybe the fact that he's had to put £111 million into the club should raise the blinkers from some folks eyes....we may have had a couple of FA cup final appearances and and half a dozen great results in the group stages of the champions league to look back fondly upon, but what has been the real price of that to the club?...maybe we were heading for the second division all along, maybe there was always going to be a huge financial reckoning at the club at some point.

 

If the Halls hadnt forced Shep's hand while he was lying in hospital where would we be now?...I'm not saying for a minute Ashley has been good for the club, but a £111 mill "loan"?....I know little of the financial world, but what the fuck has been going on? Is that the bill just to run the club in the last 3 years or was that to take care of the mess it was in when Shep departed? or both? does it include transfer fees paid out? or do the figures not give a strict breakdown of what its gone on?

The debt accrued before Ashley arrived bought a brand new stadium and transformed NUFC from a club on the brink of the third division into an established top flight club, not a few decent results in Europe.

 

It’s also worth remembering that a relegation (brought about not by the quality of the squad but becuase of the chaos Ashley’s created) cost the club £50m (Lambias’ words not mine) and the dismissal of Allardyce and Keegan another £10m.

 

Ashley made a bad financial situation a whole lot worse and has only lent the club money to stop his incompetence costing him the £135m he paid for it. Ultimately somebody will have to pay for Ashley’s mistakes, the question is will it be him or us?

[Sonatine 11542]

Maybe we could ask Mrs Merkel for a sub....................

 

A German sub?

 

Isnt that referred to as a u-boat?

 

Well, chances are Hughton will be given Das Boot sooner or later

[brummiemag1 0]

I think regardless of whether the debt will be there if the club is sold or how/ when it has to be repaid we can finally put to bed this ridiculous belief that we are a more financially sound business than we were pre-Ashley.

 

Well it depends on how you look at it.....Ashley, and this is the only good thing I can say about him, hasnt borrowed a penny that he has put into NUFC.

 

Maybe the fact that he's had to put £111 million into the club should raise the blinkers from some folks eyes....we may have had a couple of FA cup final appearances and and half a dozen great results in the group stages of the champions league to look back fondly upon, but what has been the real price of that to the club?...maybe we were heading for the second division all along, maybe there was always going to be a huge financial reckoning at the club at some point.

 

If the Halls hadnt forced Shep's hand while he was lying in hospital where would we be now?...I'm not saying for a minute Ashley has been good for the club, but a £111 mill "loan"?....I know little of the financial world, but what the fuck has been going on? Is that the bill just to run the club in the last 3 years or was that to take care of the mess it was in when Shep departed? or both? does it include transfer fees paid out? or do the figures not give a strict breakdown of what its gone on?

The debt accrued before Ashley arrived bought a brand new stadium and transformed NUFC from a club on the brink of the third division into an established top flight club, not a few decent results in Europe.

 

It’s also worth remembering that a relegation (brought about not by the quality of the squad but becuase of the chaos Ashley’s created) cost the club £50m (Lambias’ words not mine) and the dismissal of Allardyce and Keegan another £10m.

 

Ashley made a bad financial situation a whole lot worse and has only lent the club money to stop his incompetence costing him the £135m he paid for it. Ultimately somebody will have to pay for Ashley’s mistakes, the question is will it be him or us?

 

Good post

 

The first sentance in particular is so important, easily forgotten and sums up the difference between then and now. The old board, whatever their faults, had ambition and were determined to realise the enormous potential of Newcastle United and turn it into a club that would challenge for the major honours in the game. And they largely succeeded.

 

Ashley is a million miles from that, both in ambition and delivery.

[Problem Child 0]

It’s also never mentioned that the club Hall bought was facing bankruptcy as well. Up shit creek without a paddle it was. If the best they did was postpone administration by twenty years and deliver a redevelop the ground then that’s no bad thing.

 

I’m no fan of Hall and Shepherd but they probably did more good than bad.

[Happy Face 29]

In a nutshell (from quayside on NO):

 

Turnover was £86 million (all 3 areas of revenue matchday, media and commercial were down on the previous year)

 

Wages (including Keegan's £2.2m payoff) £73m

 

Profit on transfers £23m

 

Other costs £51m

 

Therefore the Loss = £15m so it was an improvement on 2008 but, due to the fall in turnover, not a massive one.

 

As at 30th June Ashley had loaned £111m making his investment a total of £247m. He took no money out in interest. At one point in the year his loan was up to £112m.

 

Imagine what the next set of accounts are going to be like.

 

The notes on the 2009 accounts indicate what 2010 will look like...

 

We had £111 million owed to him in total up to the end of that financial year.

 

A note says he's added £25.5 million to that in the past season so he's now owed £136.5m. Add to that anything he puts in over the summer.

 

Our bank overdraft has also increased from £1 million to £36 million, so the debt to the bank and Ashley at the end of this season is over £170m.

 

The fact loans to Ashley were £112m at one point shows he IS taking money out of the club to reduce the loans, seems a very small amount though....unless he's done something like put in (random numbers plucked from the air) £25m and thhen take out £24m at the point the overdraft was hiked.

[TheMoog 0]

So let me get this straight, every time Fat Cunt puts his hand in his pocket to pay for club running costs he's adding that amount to the 'loan' he's giving the club? Hmm, so every time I fill my car up I'm to add that to the final selling price if I ever decide to get rid of it? Yeah, makes loads of sense that like. Good old Mike Ashley, saviour of Newcastle United, gee I sure am glad he came along when he did.

[Happy Face 29]

Well it depends on how you look at it.....Ashley, and this is the only good thing I can say about him, hasnt borrowed a penny that he has put into NUFC.

 

Maybe the fact that he's had to put £111 million into the club should raise the blinkers from some folks eyes....we may have had a couple of FA cup final appearances and and half a dozen great results in the group stages of the champions league to look back fondly upon, but what has been the real price of that to the club?...maybe we were heading for the second division all along, maybe there was always going to be a huge financial reckoning at the club at some point.

 

You have to ask yourself why the Halls chose to get out when they did. Having retained their stake for a decade after Sir John retired they had intimate knoweldge of the accounts, they were all on good salaries for doing (basically) fuck all and they were getting massive dividends year on year. Why sell up when your on a nice little earner like that? They knew the shit was about to hit the fan.

 

If the Halls hadnt forced Shep's hand while he was lying in hospital where would we be now?...I'm not saying for a minute Ashley has been good for the club, but a £111 mill "loan"?....I know little of the financial world, but what the fuck has been going on? Is that the bill just to run the club in the last 3 years or was that to take care of the mess it was in when Shep departed? or both? does it include transfer fees paid out? or do the figures not give a strict breakdown of what its gone on?

 

£70m of loans were outstanding when Ashley came in. He only added £41m to that in his first 2 seasons. That's a better return than Shepherd managed, we lost £33m in his last season, so to average a £20m loss over each the next 2 seasons was an improvement (though we saw the result on the pitch).

 

Add to that the £25m for the season gone and we've averaged a £22m a season loss in each of Ashley's 3 years.

 

The figures include all transfers though they aren't broken down by transfer.

 

Ashley is about £20m in profit on Transfers.

 

07/08 - £5k spent

08/09 - £21m profit

09/10 - £3.2m spent

 

When we made the £33m loss, we hardly broke the bank either though, we spent £10m on Martins and £5m on Duff, but we recouped half of that (£7.5m) from the sale of Viana, Boumsong, Faye and Chopra.