NUFC Finances

I seem to remember that we were somewhere around breaking even on the last set of accounts. That being so what with the increased TV revenue from this season onwards, we should be in the green to the tune of somewhere around £30-40million per year before player trading. I doubt we will spend more than that figure in the next transfer window so the Cabaye money is effectively gone, along with this years £30-40million.

How much did we owe Ashley on those interest free loans? How long before he's paid himself back? How long before Rangers are back in the big time?

The really frustrating thing is that you could see long term success as the light at the end of the tunnel with this setup. Once the loans were fully paid back, if Ashley were to continue to not take money out for himself leaving all profits available for squad strengthening, with Carr in place to spot the right players and Pardew to get them playing... Things could be pretty good. The problem is Joe Kinnear. His presence withers any lingering, desperately clutched hope and ruins this vision of the future. Where it could be tentatively argued that the current financial prudence may be in the clubs long term best interests, keeping Kinnear in his position confirms the other more obvious train of thought. It is that Ashley does not care for this football clubs best interests at all.

 

I was wondering this too. What exactly do the club have to legally disclose by way of audited accounts? And when are they next due to publish them?

 

The FY will close end March and it normally takes 3-4 months for them to file.
Don't worry, we will be able to see where the money has of hasn't gone.
The directors are also obliged to give a headline commentary of the results and the financial stability of the club.

Don't forget either... that our kit renewal and Wonga sponsorship brought more in.... plus our wage bill will be down quite a bit too...

I reckon fatty may just be looking to fatten the goose to take it to market.

 

I'm sure he's found a way of filtering some extras out so it doesn't show.

 

Hell yeah. If he 'cooks the books' they'll be deep fried...

 

There's a whole load of regulations and legislation relating to the conduct of a company whether in private hands or share ownership, add to this the move on money laundering and it is neither easy nor in the best interests of a company owner to mess with the finances, it's generally called fraud, HMRC will also be very interested as this will have an effect on tax and VAT due and they don't let go. This is why the owners of football clubs have to inject money in the form of loans as you are not allowed to just support a business by throwing money in to cover losses or to buy players, full information on any company can be got from Companies House, generally a £1.00 per piece of info, as to annual accounts they are usually filed a year past period ending and will have to have been audited by a relevant accountantcy firm small or large.

 

Oh, don't get me wrong. I appreciate it will all be legal and above board in terms of auditing and monitoring, but I do wonder exactly what the small print is on the terms of the 'interest free loan' and the S**** Direct 'sponsorship deals' to name just two things he could be shafting the club over.

 

I wouldn't say that he's paying nufc much for the advertising. Different price if it were from some other company no doubt.

Basically Ashley is actually doing what majority of other clubs can't do and that is make money off us! it's a business and he's getting the profits. No interest in team progression other than that we don't get relegated or his product isn't as valuable.

He will be happy to stay here as long as the profits roll in, maybe that will change when rangers get back up and are in the champs league every year.

Even if he did give us interest free loans he will walk away from this club a even richer man where a lot of clubs/owners lose money. To them it's an interest a hobby or a lot a passion.

Joe kinnear was brought in as a deflector whenever these windows opened, a mouth piece

Ps I know when he bought us we were in debt, BUT there is so much money coming into the club now each year through TV rights, sponsorship etc...

 

So last Summer, we made £12.4m profit approx, then Mike Ashley took out £12m to pay off his loan. He accelerated his own repayment, for whatever reason. At the time, I speculated it was because he was looking to shift his interests to Glasgow Rangers. Now, we may see a repeat this Summer, where SOME of the money we got from Sky & Cabaye is reinvested, but we will still only count the same number of bodies - Jonas/Cabaye out, De Jong in leaves ONE place in the squad. We will try and fill that place with one player, there is no mass investment. Then after the squad has a 'complete' look, as far as the powers that be are concerned, the rest of the profit will pay off Ashley save for a token amount to show the club being in the black. This is how we will operate - when one is sold, there will be space for one and we will try and get in a better player - until Ashley is more or less repaid in full. At which point he will either sell and make a profit, or he will reinvest the true operating profit of the club back into the playing staff. Make sense?

 

Totally makes sense. So the big question is, how much does the club still owe him? I guess we'll have to see in a few months when the accounts come out - if they cover that detail.

 

I believe now it's around £120m or so.

 

So sales of Cabaye, Krul, HBA, Tiote, Santon, Debuchy, Cisse and Sissoko, plus about three years of 'profits' might just about do it then.

 

Have you been on the sauce with Joe & Mike in Totteridge? Don't tell anyone about the "strategy", there'll be hell to pay. And by hell to pay, I mean that there'll be fck all anyone can do about it....MWAH HA HA HA HA HAAAAAA!!

 

The tax year ends before the next transfer window so we'll see huge profits including the Cabaye sale - if he follows suit and pays almost all of it onto the loan leaving enough back to show us in the black that will be nigh on £60million wiped off the debt. Minimal investment for the next 12 months and perhaps one more 'big sale' and the debt will be almost gone.

Interestingly GFN France tweeted earlier that Baf Gomis has announced that he knows which club he is joining on a free in the summer, all is agreed and it will be in England. What is the betting this is part of our striker makeover? De jong for his agreed fee (bound to be pretty low), Gomis on a free and keep Cisse. HBA or Marv show they can do a job in the number 10 role and Mike will be happy to forget about Grenier but perhaps get some cheaper cover in and the jobs a good 'un.

I have the feeling that once the debt is paid, Kinnear will be moved on and MA will begin reinvesting operating profits into squad strengthening whilst keeping the Sports Direct adverts plastered everywhere. If he can get us into Champions League challengers this way then his company will get much higher profile worldwide advertising for nothing.

 

Don't know how accurate this is but @NUFC_Stats have just posted this on twitter...

please log in to view this image

 

please log in to view this image

 

Very interesting.

 

On the issue of Mike Ashley's loan and how much money he is taking out of the club to pay it back, I knew I'd read this somewhere but couldn't remember where. The official line was given at the fans' forum in September, in answer to the question - "Looking at the accounts, looks like MA was going to take out £29m (£11m had been repaid, plus another £18m due). He continues to be owed £111m and that's listed as long-term funding… what is long-term funding?";

So wherever the money is going, it isn't going to repaying the loan (and apparently not in any way to Mike Ashley).

 

The transfer market website is a good one, it provides records of transfers in and out for all clubs going back years with net spend.


http://www.transfermarkt.co.uk/en/newcastle-united/transfers/verein_762.html

 

Cheers for looking that up ITHTK.

So it's £111 we still owe and he won't get it back until he sells.

Does anyone know if that means he won't sell until we're at least that much in 'profit', or is money already being put to one side ready to pay this loan off when he does go?