Article: NUFC Financial Plan | Football, Newcastle

NUFC Financial Plan.

This is how I understand it.

MA has cleared all debts in the club completely with a hefty loan (or shud that be, took on the debts).

Starting from the start of last season, NUFC is a football club that is ran totally from scratch as a; season money gained - season money spent = profit/loss.

As of last season, MA has worked out/estimated/planned that NUFC will gain around £100m in turnover. He worked out that with the wage bill at a certain level, other operating costs, we will spend around the £70mil mark. Equalling a modest profit of around £20 -£30 mil. He will then use that money (how much is up to him), to pay back part of the loan he has invested in us.

Now he will do this season, after season, after season to eventually get to a point where NUFC has paid back the loan in full and is now, in his own words "working as a totally self-sufficient business" ie no more debt, no more loan, all profits made go to NUFC and nobody else.

That is how I understand MA's plan to be. From his own quotes, from those of DL and from the limited amount of financial information available to us.

To me, this makes perfect sense.

In a perfect world, I would like NUFC to be ran as a 80% - 90% profits go to MA's loan, 20% - 10% is used as a Transfer budget and any more, will be on a sell first basis.

I was under the impression that my perfect world scenario wasnt actually far off what financial plan we are currently working to. After all, it does make sense.

However, MA has decided to take the AC money and use most of it to pay off his loan (I believe). This is what I do not like. As NUFC's accountant, I would love it. But as a NUFC fan, I do not like it one bit. Because at the end of the day, we are missing a HUGE opportunity to become a better team. And in my eyes, a better team makes more income, and the more income we make we can pay him off sooner and be rid of him forever.

The stronger financial plan to have would be to invest most of this unexpected huge cash bonus in the team, to enhance the already sound financial plan with more steady guaranteed Income. Transfer money is not guaranteed. Turnover is. Increase the Turnover I say, it will be healthier in the long term.

We are wasting the opportunity presented to us. Which is what I am most pissed off about.

 

I am actually of the opinion Mike Ashley is full of **** and he's raking it in. The mans made billions out of peasants making clothes in festering conditions for grains of rice. This makes him disgusting before any dealings with us.

 

this this and umm this

rep

 

Pretty much every successful company in the world exploits people. Which doesn't make it right, but to single out Mike Ashley for it is ridiculous.

 

were a football club with fans not a company with customers

 

Agree, generally. The loan doesnt have to be paid off at a certain rate, and there is zero interest as well because the loan just came out of Ashley's pocket. We dont know how much has been spent this summer but I agree we should have used more and could have built quite a team with the money.

 

Enrique fee agreed according to the reliable FourthOfficial on twitter.

 

Keep deluding yourself, pal.
Football's a business, fans are customers. Nothing more.

 

i have more hope for football than some people, nothing wrong with that

 

Whats the link to FourthOfficial's twitter?

 

Newcastle sell a player the money goes into Ashleys pocket. It's a simple plan really.

 

The problem with selling a player and taking the money back to repay the loan is a net position of nil on the balance sheet. Assuming the Interest rate is zero then there is no impact on the profit and loss account.

BUT There is an asset loss to the company....the player. Thus as a football team we cannot perform as well theoretically. This actually devalues the football club because less performance means a lower league position (perception to an investor) and lost revenue in terms of advertisement and position related income.

Thus he is in effect shooting himself in the foot provided the left over players do not perform aswell as the ones sold. He knows to make money he has to invest into his businesses. He wouldnt have been able to grow his past business ventures without pumping the money back in at some point.

This means one of two things.

He is hoping that the current players can in fact step up. This is a question I brought up in a previous post so I am not going to go into detail.

He is actually going to reinvest and buy some more players and the deals have yet to come to fruition. This is actually quite viable as there is time yet.

But what he could do is try and keep his customers (US) happy by telling us what the intentions are. The problem with doing this is as follows:

The club come out and state that we have set aside £35 million aside to buy players (which did happen as pardew opened his mouth). Other clubs and agents of players get wind of this and take our club up the garden path asking for unreal amounts of money and thus rendering any decent deals pointless.

This is why I believe we have been close on some occasions to buying some players but when getting to the nitty gritty its got to expensive.

My issue atm is not about the reinvestment of the sold players fees but more to do with the actual treatment and disposals of them in the first place.

 

the other week i wanted to go out for a few pints, i didnt have any money,so i lent myself 50 quid ,the problem is, i cant go out this week because iv got to pay myself £20 to get the loan down.

 

Loan with no interests, that is very generous of Ashley. Or you guys preffer loan from bank with interests? If it's my money or your money, we definitely do the same thing, which is we want our money returned asap. But since it's other people money (Ashley's), it is wrong according to you guys. How hypocrite of you guys!

 

I think I realised Ashley's plan some time ago, however I constantly kept telling myself everything would be fine and good players would be brought in to replace the ones leaving and add quality players to enable the squad to gain depth. This would give us chance to challenge for Europe and have a crack at the Cups.
Sadly this will not be the case.
I can't see more than ONE more player being brought in. This will be a centre-forward because Ashley is not stupid enough to risk relegation. As for other areas. Youth will be used to cover positions when players are injured. This will lead to an expected 10-15 finish. I bet that is what Ashley has banked for.
Ashley THE GOOD - He has great business skills and I admire what he is doing. As a businessman myself I would do the same thing, however if I had his money I would not be interested in paying back the loan. This is because I am a TRUE fan and passionate about the TOON. Lets face it, HE DOESN'T NEED THE MONEY.
Ashley the bad - He doesn't feel passionate about the club, therefore any profit we make will go back to repaying the loan. I don't know how much exactly we need to pay back but it could take some time.

If only Ashley was as passionate about the TOON as us lot or other chairman/owners of football clubs. We would become a profit viable club and successful.

 

The only bastards here are player's agent, they are bunch of parasites. They want money for doing nothing. Take example for willie mckay and erding's agent. We would have signed Erding if it wasn't because of his agent. We wouldn't in this mess with Barton if his agent done his job. They don't care about player's well being and future, they just care about getting money from their players and the clubs. If I was Ashley, I would be really annoyed with them.

 

have no problems with the article and how nufcbano has laid it out, nice to see a balanced view (not like mine)
i just do not get how he doesnt seem to understand that investment is needed in the squad to ensure the income remains steady in order to implement his plan.
it seems akin to someone asset stripping a company, then wondering what went wrong?

i am still convinced that his plan is to stick around and make the fans suffer for having the nerve to critise and protest against him for his past decisions.