30th June 2011

[Toonpack 10396]

Is NUFC's year end.

 

So the Carroll money (or whatever portion is being spent) will have to have been spent by then (on the assumption that we aren't still making losses) or it'll attract tax, which I would hope, even he ain't daft enough to let happen.

 

If it's not spent by then, the next accounts will show he's reduced his exposure, I reckon.

 

June could be interesting.

[Geordieboyo 0]

Is NUFC's year end.

 

So the Carroll money (or whatever portion is being spent) will have to have been spent by then (on the assumption that we aren't still making losses) or it'll attract tax, which I would hope, even he ain't daft enough to let happen.

 

If it's not spent by then, the next accounts will show he's reduced his exposure, I reckon.

 

June could be interesting.

 

Wrong I'm afraid.

 

The Carroll sale will contribute £35m to the overall profit/loss in the accounts.

Any money spent on new players will contribute to the overall profit/loss in the accounts over the next few years (depending on length of contracts etc). Even if we were to sign someone now for £30m and have his contract start today (don' even know if that would be allowed with transfer windows) then at most there would be 6 weeks worth of the money spent showing in the accounts this year.

 

As we've made significant losses in the past few years we will have brought forward tax losses to utilise against any profit this year. If we're looking at reduced losses or even profits in the next few years, then now is probably a good time to have a whacking great profit so Mike is probably quite keen to realise it

[LeazesMag 0]

So, the money for Carroll, or the bulk of it, is going to disappear down a big black hole never to be seen again

 

Isn't this great, its just like when we sold Waddle, Beardsley and Gazza, oh the nostalgia of it all.

Edited May 15, 2011 by LeazesMag

[NobbySol 22]

So, the money for Carroll, or the bulk of it, is going to disappear down a big black hole never to be seen again

 

Isn't this great, its just like when we sold Waddle, Beardsley and Gazza, oh the nostalgia of it all.

 

Your pessimism is harrowing. Even more harrowing is you're fucking right

[Geordieboyo 0]

So, the money for Carroll, or the bulk of it, is going to disappear down a big black hole never to be seen again

 

Isn't this great, its just like when we sold Waddle, Beardsley and Gazza, oh the nostalgia of it all.

 

I didn't say that, just that there is no magical cut-off date where we need to spend the money or be stung with a huge tax bill.

 

If anything, keeping the 'profit' fully in this accounting year makes perfect sense as the club/company get to utilise past year tax losses to ensure that the exceptional profit this year doesn't attract a massive tax bill and the tax losses aren't lost.

 

I know that you understand the big difference between cashflow and profits in football clubs and how the treatment of payer sales/purchases affects this.

 

In short, an accounting year will have no bearing on how much of the Carroll money we spend/lose.

[ewerk 31592]

 

I'm loving the logic behind the OP.

[LeazesMag 0]

So, the money for Carroll, or the bulk of it, is going to disappear down a big black hole never to be seen again

 

Isn't this great, its just like when we sold Waddle, Beardsley and Gazza, oh the nostalgia of it all.

 

I didn't say that, just that there is no magical cut-off date where we need to spend the money or be stung with a huge tax bill.

 

If anything, keeping the 'profit' fully in this accounting year makes perfect sense as the club/company get to utilise past year tax losses to ensure that the exceptional profit this year doesn't attract a massive tax bill and the tax losses aren't lost.

 

I know that you understand the big difference between cashflow and profits in football clubs and how the treatment of payer sales/purchases affects this.

 

In short, an accounting year will have no bearing on how much of the Carroll money we spend/lose.

 

sarcasm is a form of wit.....

 

I'm one of the few people who said, at the time, that allowing Souness to sell and buy in the manner he did was financially bad for the club and would have longer term repercussions, I'm not specifically talking about any one player ie Owen, but I AM also including the sales of Bellamy and Robert both for playing reasons and also for the fees that were got for both of them.

 

I understand exactly what you are saying, but my point is that under Mike Ashley, we are in a decline and are accepting lower standards than ought to be the case, we have to keep pace with the other top clubs, if we don't attempt to, we only fall further behind.

[snakehips 0]

So, the money for Carroll, or the bulk of it, is going to disappear down a big black hole never to be seen again

 

Isn't this great, its just like when we sold Waddle, Beardsley and Gazza, oh the nostalgia of it all.

 

Leazes, I hate this guy [LardAsh, not Geordieboyo } almost as much as you, but we simply can't say that this transfer window is definitely going to be poor. Possible/probable? Maybe. We are just going to have to wait and see.

 

My gut instinct tells me Newcastle United is being used as a great big guinea pig in the finance style of running a football club: Transfers paid up front; money in the kitty to include wages for the length of contracts; lower player salaries and self-sustainability being the aim (along with him regaining his initial outlay, bit by bit). I'm far from having a full understanding of it all, as most will be able to tell, but the current 'system' all seems so very strange to me which is why I'm trying to guess what the truth is. My biggest fear is that we stay in the Prem, by hook or by crook, and LardAsh gets his money back bit by bit. But once he's even he DOESN'T sell, but keeps using the club as money making scheme. I'm probably far from the truth, but my tiny brain is just trying to comprehend what the plan actually is.

 

We just have to wait and see this summer what actually transpires.

[Geordieboyo 0]

So, the money for Carroll, or the bulk of it, is going to disappear down a big black hole never to be seen again

 

Isn't this great, its just like when we sold Waddle, Beardsley and Gazza, oh the nostalgia of it all.

 

I didn't say that, just that there is no magical cut-off date where we need to spend the money or be stung with a huge tax bill.

 

If anything, keeping the 'profit' fully in this accounting year makes perfect sense as the club/company get to utilise past year tax losses to ensure that the exceptional profit this year doesn't attract a massive tax bill and the tax losses aren't lost.

 

I know that you understand the big difference between cashflow and profits in football clubs and how the treatment of payer sales/purchases affects this.

 

In short, an accounting year will have no bearing on how much of the Carroll money we spend/lose.

 

sarcasm is a form of wit.....

 

I'm one of the few people who said, at the time, that allowing Souness to sell and buy in the manner he did was financially bad for the club and would have longer term repercussions, I'm not specifically talking about any one player ie Owen, but I AM also including the sales of Bellamy and Robert both for playing reasons and also for the fees that were got for both of them.

 

I understand exactly what you are saying, but my point is that under Mike Ashley, we are in a decline and are accepting lower standards than ought to be the case, we have to keep pace with the other top clubs, if we don't attempt to, we only fall further behind.

 

I agree with most of that, excpet I don't think we have been in decline this season (on the pitch at least).

However, to go from that to the Carroll money disappearing down a black hole before the transfer window opens is a big leap! Come the end of August you may be right, and I doubt we'll spend £35m but hopefully we don't have to and we get some more Tiote style gems and build the quantity as well as the quantity of the squad.

 

Time will tell

[LeazesMag 0]

So, the money for Carroll, or the bulk of it, is going to disappear down a big black hole never to be seen again

 

Isn't this great, its just like when we sold Waddle, Beardsley and Gazza, oh the nostalgia of it all.

 

Leazes, I hate this guy [LardAsh, not Geordieboyo } almost as much as you, but we simply can't say that this transfer window is definitely going to be poor. Possible/probable? Maybe. We are just going to have to wait and see.

 

My gut instinct tells me Newcastle United is being used as a great big guinea pig in the finance style of running a football club: Transfers paid up front; money in the kitty to include wages for the length of contracts; lower player salaries and self-sustainability being the aim (along with him regaining his initial outlay, bit by bit). I'm far from having a full understanding of it all, as most will be able to tell, but the current 'system' all seems so very strange to me which is why I'm trying to guess what the truth is. My biggest fear is that we stay in the Prem, by hook or by crook, and LardAsh gets his money back bit by bit. But once he's even he DOESN'T sell, but keeps using the club as money making scheme. I'm probably far from the truth, but my tiny brain is just trying to comprehend what the plan actually is.

 

We just have to wait and see this summer what actually transpires.

 

He obviously bought the club and was very naive, but once he got his feet under the table, what you have said above became the aim, quite obviously, I felt it was obvious from comments made by Mort and complaints made by Allardyce this was the road we were going.

 

One thing that has probably surprised him, is that he had bought into the myth that "52000 Geordies will always go to watch NUFC" hence what he thought would be guaranteed revenues etc. This is not the case at all, most of us know it, these crowds were attracted to the club by the previous owners - who are now mocked by hypocrites and fools for it and for how they did it - and now, yes, I agree, he will use it as a vehicle alongside Sports Direct to promote, advertise and enhance the 2 companies in conjunction with each other, doesn't really need to attempt to compete at the top levels to do that, so just wants to be in the premiership and keep the crowds etc as high as possible. If it means selling players to make up for losses in revenues, he'll do it, rather than attempt to get into europe where the big money is. Selling a player is far easier than trying to qualify for the Champions League.

Edited May 15, 2011 by LeazesMag

[spongebob toonpants 4183]

Is NUFC's year end.

 

So the Carroll money (or whatever portion is being spent) will have to have been spent by then (on the assumption that we aren't still making losses) or it'll attract tax, which I would hope, even he ain't daft enough to let happen.

 

If it's not spent by then, the next accounts will show he's reduced his exposure, I reckon.

 

June could be interesting.

 

More proof you don't understand football club finance

[toonotl 3289]

It's going to be an exciting summer waiting for us to sign Carlton Cole.

[snakehips 0]

It's going to be an exciting summer waiting for us to sign Carlton Cole.

 

Or Kyle Laugherty

[LeazesMag 0]

nah, we've got the Ameobi twins

 

"good business". Who needs to waste money on good footballers anymore eh, what a mugs game.