Have a look at this......transfer dealings

No idea why he bought it but the idea he's taking money out of the club is ridiculous, he owns it outright so money doesnt leave it to go to him, and the club isnt turning a profit anyway so there's no money to take out.

 

You're still one of the higher spenders though. 130 mil+ in 3 years i believe

130 mil just to get annihilated 5-1

 

And in addition to that they have outspent us by £117m over the last five years. It is why I pointed out to them that they have no reason to feel satisfied at finishing one point above us in the league. But they wanted to have their little celebration.

 

Who knows what his motivation is. It sure as hell is making money from the club. The only ways he can take it is by a salary, dividend, loan repayment or loan interest and he takes none. He has also pumped in significant sums into the club to keep it afloat £243m is the latest figure I have for the loan he has with the club. He could be making serious money with that invested in bonds or gilts.

Maybe he does it for the love of the fans, because we tell him everyday how much we appreciate his efforts on our behalf?

 

Fair play for the way you came back from going down with 19 and 15 points, but Roy Keane did spend a lot of money getting you back in the League and to keep you lot there. Same as a lot of other teams have clearly spent a lot as well.

 

So basically the last Nett per season is how much money you spend a season, taking into account selling players?

I am quite good with £4 million a year, and you can tell where the good honest clubs are there, like Everton, Bolton, Wigan, West Brom etc..

I feel sorry for you lot, even taking into account the selling of players at relegation, -£10 mil a season is really bad :/

 

No he didn't buy it to make money, he bought it essentially as another way of promoting Sports Direct. Kinda backfired after the Keegan saga/Kinear/relegation/sacking Hughton... He's may not be trying to make a profit BUT he IS trying to minimise loss. Whether that's for the clubs benefit or his own is a matter for our own cynicism.

 

What needs to be taken into account here is that one of the first changes MA made to the financial dealings of the club was to pay for player purchases up front in one installment. Before that the club had purchased players in multiple installments and sometimes with money borrowed against future income (notably gate receipts). It should also be noted that the Income figures quoted here are gross and do not take into account that when players are purchased they are amortised over the length of their contract so you have to take away the remaining value (net book value) to determin whether any profit was made, and indeed what the profit or loss actually was. For example if you purchase a player for £5m on a five year deal you would amortise £1m of the purchase price each year until he effectively shows as being worth £0 at the time his contract runs out (which is fair because he can now leave on a Bosman and is worth nothing to the club). The other side of the transaction goes to the profit and loss as an amortisation expense. Therefore if you sell the player during the third year of his contract he is worth £2m to the club (£5m less three deductions of £1m), so if you get £4m for him you have made a gross sale of £4m but a net profit of £2m (£4m received less £2m net book value). The figures for Income here, however, are the gross sales figure and do not reflect the actual profit made.

These two factors will reduce the actual profit made, we can't know how much by without access to detailed accounts but it would be significant. It should be noted though that the club made a loss in all the years of this period up until 2009/2010 season (2010/11 are not available yet) so it is strongly suggested that these measures were necessary.

This also means that MA would have had to invest more of his own money into keeping the club afloat than he already has. The latest figures available for his loans to the club are £111m from NUFC and £132m from the holding company for a total of £243m. This would have been considerably higher had it not been for this.

There is also nothing new to see here. We have known anyway that the club has made a profit in all the transfer windows for years. What these figures do show, however, is that despite showing a massive net deficit in transfer activity the club still didn't turn profits and would also be hugely in debt. Were those debts to anybody but MA the club would now probably be in administration or worse. It is Shepherd and Hall that led the club to this not MA.