Off Topic Fredor is not going to like this

http://www.telegraph.co.uk/football...l-huge-cost-steve-mcclarens-failure-tyneside/
Newcastle United reveal huge cost of Steve McClaren's failure on Tyneside

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Steve McClaren's spell on Newcastle did not pan out as hoped CREDIT: ACTION IMAGES

• Luke Edwards

6 APRIL 2017 • 3:16PM
Newcastle United managing director Lee Charnley has labelled the club’s failure to stay in the Premier League “unacceptable and totally unexpected” after their accounts revealed they spent more than £70m on players under former head coach Steve McClaren.

Only Manchester City spent more money on recruitment last term, but the Magpies suffered a disastrous campaign under McClaren and Charnley argued only owner Mike Ashley had saved them from financial ruin after relegation.

McClaren, a former England manager, was given unprecedented financial backing by Ashley and although chief scout Graham Carr was responsible for identifying transfer targets, it is still remarkable that Newcastle were relegated to the Championship.
Despite their huge outlay on players, Newcastle were still able to post a profit of 4.6m in 2016, down from £32.5m in 2015. The lavish investment in the squad followed months of angry protests from supporters urging owner Mike Ashley to sell the club.

Newcastle signed Georginio Wijnaldum, Aleksandar Mitrovic, Florian Thauvin, Chancel Mbemba, Jonjo Shelvey, Andros Townsend and Henri Saivet in the summer of 2015 and January 2016, with a net spend of £70.7m, compared to £23.8m in 2015.

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Rafa Benitez is the current man in charge on Tyneside CREDIT: AFP
Only three of those players remain on Tyneside after relegation to the Championship, with only Shelvey has been a regular starter under Rafa Benitez.

Benitez took control of recruitment when he agreed to remain as manager last summer, although Carr remains at the club and has resisted any attempts to force him to leave.

Carr remains close to Ashley and it is understood there has been tension behind the scenes at St James’ Park over the course of the current campaign, most notably when Benitez was unable to strengthen his squad in the January transfer window.


Newcastle are expected to announce losses of around £60m when they release their next set of accounts in 12 months’ time.

Ashley has covered those losses in the form of an interest free loan of £33m, with the rest covered by the £35m profit Newcastle made in the transfer market under Benitez, a figure swelled by the £30m they received from Tottenham Hotspur for France international Moussa Sissoko on transfer deadline day in August.

"The 2015-16 season was extremely disappointing for everyone connected with the club,” said Newcastle managing director Lee Charnley, who almost lost his job following relegation.

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United recouped on Moussa Sissoko CREDIT: AFP
“Significant sums of money were spent to strengthen the playing squad in the summer 2015 and January 2016 windows, which also resulted in an increase in our annual wage bill. In the context of this spend, relegation was both unacceptable and totally unexpected.

“The financial impact of relegation is difficult to overstate and this will become evident in our next set of financial results for the year ending June 2017. The biggest impact by far is the dramatic reduction in centrally distributed income that comes with dropping down a division; the reality being our income in this area is forecast to fall by over £30m compared to 2015-16.

"To highlight the differences, our 16 live TV games last season earned us £12m in revenue. Contrast this with 2016-17 EFL live fees which based on our current number of confirmed appearances (12 away and 6 home), will earn us a total of £720k.


“To illustrate further the cost of relegation, 2016-17 marks year one of the new Premier League TV deal and the team that finishes in 18th place this season is expected to receive in the region of £30m more revenue than we did for the same place finish last year.

“Our approach, following relegation, was to make further sizeable investment in our playing squad in preparation for the EFL Championship season ahead and our annual wage bill is, we believe, still above and beyond many current Premier League teams.

“Whilst not without financial risks, this strategy was adopted in order to maximise our chances of promotion at the first time of asking.

“Outgoing transfers will ultimately generate a significant net player trading surplus for the summer 2016 transfer window but, due to the cash profile of the deals, this will result in a net cash outlay in 2016-17.

“Our adopted strategy has therefore only been made possible by the cash injection from our owner, who continues to provide interest free funding to support the club’s operations, never more important than during this financially challenging season."

So what Penfold seems to be saying is that we made a profit in 2016 and may even make a profit in 2017 but Mike has fronted up some more cash, as some of the outgoing transfers were staggered payments, while the incoming ones were paid in cash.

 

I think we'll be making a significant loss this season judging by what they've said there.

I also think it confirms what I've suspected which is it will require another "significant cash injection" from Ashley for us to fund the required signings this summer for us to compete in the premier league. We will get huge payments for being in the premier league once we we've been in it for a while and Ashley will have to recoup what he has/will put in over 2 or 3 seasons perhaps if we want to secure premier league stability. What I read from that article is that we had excellent cashflow, but relegation has ****ed that right up, but I kind of expected that.

 

I wouldn't mind betting £10 to a bag of sh!te that Fredor comes on and explains that if you look deeper into the figures then statistically we actually spent £120 million, didn't get relegated (it's a myth), 125,000 were locked out Stadium of Light for the last home game and he hitched a ride on the first cruise missile last night because someone on a Syrian football forum p!ssed him off.

 

I fully appreciate Lee Charnley coming out publicly to endorse everything I have said regarding the approach taken by N.U.F.C , he admits to spending huge sums of money, which should silence my critics on here that have been constantly denying this,



Let me put this into simple English for you

After being relegated we continued to spend money in trying to buy success, resulting in a massive wage bill that other teams cannot afford

Go back to some of my previous comments where I informed you that football has ceased to be a sport and positions are up for sale to the highest bidder , your future success depends 85% on Mike and 15% on Rafa

Whilst not an exact science, there always will be contingencies, take a look at the Premier League , money spent v position

You just need patience to wait for Mike to decide what position he wishes to purchase next season

Have a nice day everyone !!!

 

I expect an apology from you for doubting the figures I posted Re money spent though I will not hold my breath waiting, though he has put you in your place for a while

 

They can bang on about 70 million but comparing it to Man City over one window is ridiculous its about spending consistently

 

The thing is that nobody questioned the money spent that you posted in the particular years they were spent. What everyone said but you either ignore because you are dense or because it doesnt suit your agenda or most likely both is that we sold plenty as well this year AND we still made a profit in 2015 and 2016. As our venerable CEO says the only reason Ashley had to put a cash injection in for 2016/17i was because he accepted staggered payment terms for the players we sold. He could have taken a bank loan like Sunderland did but had it say around anyway abd dudnt want the club lumbered with interest payments. Pity Short wasnt willing to do the same thing as its hurting Sunderland.

 

Fredor, genuine question, looking ahead instead of backwards for a change, if money dictates football now, what do you think Sunderland's prospects are? And which league do you think they will be in around 5 years time?

 

Why not hold your breath for about 30 minutes and make us all happy.

 

I was sure that once Lee Charnley endorsed my comments you would surely desist from your bogus manipulations of the figures, but then again , " There are none so blind etc etc

 

You are trying too hard to get my message across, once will suffice

 

Fredor are you going to answer my serious question above?

 

Sorry , Sunderland prospects at present are very very poor, in five years time no one knows, it will depend like every other team as to what position they can afford to buy at the time , you must always bear in mind that football is not like a lot of other sports where you must train youngsters and nurture them into a team that one can be proud of , with of course the occasional addition of players from other sources

I would like to see more credit given to Mike Ashleigh who although loosing over half a billion pounds in his business dealing continues to pour money into N.U.F.C with little or no appreciation shown

 

That's the first time he's put money into the club since the last time we were relegated. It wasn't money to buy players at the start of the year, it was an overdraft for cash flow purposes during the season to float the club and provided by him rather than a bank. If the point you've been making all these months is that football is driven by money then what a waste of time for everyone since everyone already knows that. Just look at Sunderland - they have none and are getting relegated. The problem is you can't read a balance sheet and you keep posting incorrect numbers and assumptions about NUFC that everyone has to correct you on. If you are trying to say that Mike Ashley has been putting money into NUFC year after year then you are completely deluded. The only reason he put anything in this year is to save money on interest fees that a bank would have charged on an overdraft, and none of this is unexpected considering we were a Premier League club who have been relegated and therefore had a massive cut in income this year but with a relatively high cost base (although it was well under control for a Premier League club since we were a profit making entity in previous seasons). It's pretty much the same for the majority of relegated clubs as you will find out with Sunderland next year.

You think we should praise Mike Ashley? You have to understand one of the key reasons Newcastle were relegated was a failure by the club (on Ashley's orders) to spend the profit we were making year after year. We didn't build a quality squad over time and when it came back to bite us in the arse 2 seasons ago when we managed to stay up by the skin of our teeth Mike Ashley's arse fell out at the prospect of losing the Premier League TV income and he acknowledged that we needed to rebuild the squad - you may recall it was before the final match of the season and he gave his only TV interview before or since (I believe). So all the stockpiled money in the club's cash reserves was spent (circa £80m). Unfortunately it was spent by one of the worst managers in English football history and it was like trying to put a sticking plaster on the side of the club - a good team needs to built over many years not in one season. As a result we were relegated.

You are right on one thing, however, that we are at the mercy of Mike Ashley's whims. Long term he will not put his own money into the club year after year which you seem to be implying. He has always said he wants the club to be self-sufficient - which we were until relegation. I can see cash flow being a problem if/when we are promoted so if they decide they need to spend money on transfers this overdraft may need to be extended until Premier League payments come in, although it sounds like we will be getting further payments from players we sold last year and I think we will sell some players to raise funds so maybe we can get by. I'm fully expecting Ashley to recoup this recent cash injection though since it has been described as a short-term loan and to be fair with Premier League money so ludicrously high these days he should be able to do it fairly quickly.

 

I hope you are wrong because if what you say is true then you can forget about next season as the team you have at present is no better than the other two North East teams, it is important for the whole area that at least one of them has some success as at present I do not see some mogul breaking their neck to represent the North East of England, an area that I have always been proud to be associated with

Sorry for such a dismal comment but it is the truth as I see it

PS I have never at any stage suggested that Mike has poured money in year after year , this is a problem , when you make statements like this people believe you, I will say at a time when he was under massive financial stress, at his level, he poured big money into N.U.F.C you may argue it was a business decision but you have to admit football is more akin to gambling , a thing that Short or for that matter a lot of other owners were unwilling to do

As a person I think he is despicable

 

I'm sure Ashley thinks you're a c@nt like the rest of us.

 

You said it not me

 

Credit where credit is due - that was very good by your standards.

Touche!

However, you still can't grasp that you only ever look at how much we spend and ignore how much we bring in. It's a warped view of things to suit the point you are trying to make.

 

Chuck a lame dog some scraps and he'll keep coming back...

 

Eventually he'll get tired of hitting his head on locked doors though if he keeps being a twat!