Our Accounts

If we didn't cut our wages we'd have been ****ed. Other than that looks like last season hit us hard. I'd be interested to see how this seasons end.

 

The BBC cover this on there news page.

The results are good considering we spent a year in the championship, It leaves us in a very strong position and considering the estimated £60m promotion gets us and the £35m from liverpool, next years accounts should look very good.

And an interest free loan £100m+ is not uncommon in the football world. So before all the ashley haters jump in, Just have a look at what he has done finincially for us to keep the club alive and get us back in the premier league.

 

It basically could have been a lot worse and the accounts for next year will be a lot better. You'd expect season ticket sales to increase to a similar level to that of 2008/09 and of course you'd probably expect TV and media revenue to probably increase from last time in the premiership. Also other revenue on matchdays will probably increase again because are average attendance has increased. The wage costs will then be similar to last year, as we haven't bought anyone since then that are on a huge wage, except maybe Tiote who is thought to be on around £50,000 a week.

I'd personally expect next years to be around a revenue of £90 million and expenses of £80-90 million, therefore making a £10 million profit. That is without taking into consideration player sales, which we have made a large profit from this year.

As I said the figures for this year could have been a lot worse, but in fairness to Ashley he appears to have pumped the money and we will break-even at least next year. Things are looking good!

 

Someone else just put something by Simon Bird up (i forget whom) and it says they are aiming for 10m profit, which would go straight into player funds (on top of any money generated by selling). So if you beleive Ashley and Llambias (and, unfortunately, i do) things are looking up!

 

Mine wasn't a bad summary/prediction then

 

ssn after 10 am some financial guy on to discuss it

 

As others have said, the figures should look very good for this year. However, these accounts have made me realise just how bad things could have been if it had not been for;

1) Ashley pumping a huge amount of cash into the club. (I know that this was to protect his investment, but fortunately his needs coincide with ours)

2) The amazing fans that keep the ground full.

3) Chris Hughton taking us back to the Premiership in one season.

This could have been so very different had no 3. not happened. Instead, we are in the Premiership (and hopefully will stay there) with a far more streamlined business and a sensible amount of cash available for new players in the summer.

My overall view is that Mike Ashley could have completely ruined our club but has borne the brunt of his mistakes financially. We are looking at balancing the books or even making a profit this year which has to be good for us as a club.

 

These figures are very encouraging and show that in administrative terms the club stopped a crisis (relegation) from turning into a disaster. As a guesstimate I would reckon the clubs wage/turnover is now in the region of 65/70%.

However, at the end of the day the reason the club is still solvent, like many others, is due to interest free loans etc from the owner. But to re-dress the balance it was his decisions that sparked the crisis in the first place. So he owes us one, so to speak.

Just a couple of points from previous posters, the remark from Jesus about where we would have been had Shepherd been in charge when we got relegated misses that point that we probably wouldn’t have been relegated under him. And to Aldridge who thinks there's loads of money in being in Europe you couldn't be more wrong. The Europa Cup is no cash cow and never has been, the winners get much less than group teams do in the Champions League. But I take the point that Europe does provides a marker to aim for in terms of team development.

If we manage to stave off relegation, these figures will be a positive influence for the future but only as long as the owner has learned from past mistakes and huge gambles, like selling AC, are few and far between.

Given the true nature of Mr Ashley’s tenure, I think it’s a bit premature of people to start licking his jacksy just yet.

 

Must disagree with the bit about "the club" stopped a potential administration etc... I have to say that it was a certain Mr Hughton who had a bit to do with it - and he did ONE HELL of a job!

After disagreeeing with one bit, I have to agree with the last - a bit strange given everything that's been aimed at him by you lot??

 

Can i just reiterate that NUFC fans are not one single entity. I know i haven't called for Ashleys head since the beginning of the Championship campaign. And this board seems to be mainly people with their head's screwed on, unlike the posters on Chronicle/Journal articles!

I have been saying that Ashley has been doing a good job for a while now, and honestly i never though i would say this a couple years ago, but if he does as he says and backs Pards well in the Summer window. He is as good as forgiven for his past wrongs in my books.

There, i said it! I realize i will now have to go and be out-casted with Tash. Good day <DoffingCapSmiley>

 

I don't think that it is a case of people loving Ashley, but realising that he is paying for the catalogue of mistakes that he has made and that the way that the club is being run financially, makes sense.

I believe that Ashley is only protecting his investment and that the only way he can sell the club and recoup anywhere near what it has cost him is to make us into a financially solvent top 10 club. He certainly is not putting money into the club for the fans benefit, but the financial strategy that he has put in place does benefit us.

As for your comment on Chris Hughton, I completely agree, as I said in point 3. of my previous post.

 

You're forgiven. In fact, I'm starting to feel the same way. Many of his choices have been questionable, but he since relegation he has supported the club 100% in terms of finances etc. I just hope we've turned a corner.

 

Relief it's not just me then!!

I know, it would be amazing if we turned out to be one of those mythical 'well run clubs'...

 

To believe that Ashley would have let the club sink into a severe financial mire is laughable as his financial inputs into the club during the relegation season were simply to keep the club ticking over and protect his investments.

The whole relegation kerfuffle started with Ashley and his handling of the club. It stemmed from the board lying to the manager, going behind his back, lying to the fans, ignoring the players and generally ensuring that every possible conceived screw up that could haopen; did happen.

The main saving grace for his tenure is that behind the scenes he's looked at ways of improving the club through cuts and costing. No longer is the club throwing good money after bad in the hopes that something may change with wild investment.

Saving money from one area of the busienss and using it to enhance another to have a stronger platform to generate revenue and break even is all part and parcel of any business.

Identify a weakness and rectify it.

Policy changes have been implemented in staff recruitment to stop this reckless investment that the previous board were so reliant upon.

The other factor that seems to have been identified as key to any advancement on the pitch and within the club as a whole is stability.

Hughton did a wonderful job but Ashley has publicly put his faith in Pardew for the long term as shown with a long term contract.

It's now a case of waiting for the summer, seeing how any investment is spent, see who is retained and then kicking on for the 2011/12 season.

Good recovery so far in terms of the books but if we are to be this 'model' of financially sound and solvent then the work for Pardew has only just begun to see it through.

 

This is what I was trying to say but you put it much better than I could.


have some rep


edit you could have some rep if I was allowed to give it to you

 

2 phrases ive never expected to hear mentioned about Newcastle

Stable, Well run, what next NUFC fans not deluded

 

Come on now GRB, don't get too carried away.

 

I must admit that I've read this particular part several times as there are numerous nuances that COULD be read into it! My immediate thought was that Cashley would have let it sink (damn sure he knows the concept of Historic Cost), but after review maybe thought the point hadn't been reached in projections??

I've gone on record as saying that I hate Cashley for saving you lot (Fat Freddie had the good ship NUFC on a course for the rocks) and one season does not a sound club make - I DO KNOW from our past years - and the numbers need several years of profit for him to recoup anything. I expect you to lose a few of your names this season as he aims for this.

 

Had Hughton not brought us straight back up, Ashley may have looked at this option, who knows.

We may lose Barton this summer and Colo next because the club will not pay their level of wages, and I think that any huge offers for players will be considered. However, and I might have this completely wrong, but I get the impression that Ashley realises that the squad drastically needs to be strengthened in both depth and quality.

Do you think that Ellis Short will continue to plough £millions into your club, and how much of the Bent money will Bruce get to spend?

 

Like Simon said...what I was hoping to put across!