NUFC Accounts

NUFC Accounts are available online now. http://www.nufcblog.org/newcastle-united-accounts.pdf

Here's a jist:

Newcastle United 2011 accounts now online (£32.6 million profit after Carroll sale)

Newcastle United: £32.6 million profit after player trading.

Newcastle United’s annual accounts were finally released to the public today by Companies House.

These, of course, are the accounts which cover last season, our first since being promoted back to the Premiership at the first attempt. As previously announced in a PR statement by the club’s Managing Director, Derek Llambias, operating losses before player trading fell to -£3.9 million, which is significantly down from a loss of £33.5 million for the period which covered our season in the Championship. However, the club’s overall profit after player trading was a mighty £32.6 million. This of course was due largely to one man, not Mike Ashley, or Derek Llambias, but Andy Carroll, whose sale to Liverpool FC brought in a huge £35 million to the club’s coffers. This is up from a loss of -£17.1 million in the previous year. According to the report, this profit “has been transferred to the club’s reserves.”
Newcastle United debt

On the matter of the club’s debts the report and financial statements reports:
“The overall level of net debt (including shareholder support loans and net of cash) has fallen from £150 million to £130.5 million.”
Basically, this figure is a £140 million pound debt to the club’s owner, Mr. M.J.W. Ashley, minus a positive bank cash balance of £9.5 million. This is still significantly higher than it was when Mr. Ashley took over the club in 2007, when it was around £70 million. However, this £70 million figure did not include the mortgage on the ground which had to be paid off, which took the true level of debt to around £124 million.
Some other points of interest

Interestingly, although revenues from things such as TV revenues and corporete hospitality from the glory hunting “Prawn stotty brigade” rose significantly for one obvious reason (Promotion to the Premiership), other revenue streams were “relatively flat” to use the words of the report. These included such things as season ticket revenue, gate receipts, commercial, catering and sponsorship revenue. On this the report stated:
“Commercial turnover was relatively flat compared with the Championship season and it remains a potential growth area and the club will be working over the next few years to grow this revenue stream.”

 

That is all.... very confusing

 

What we need to remember is that the accounts were for June 2011. We've net spent on transfers since then around £8m and then around £10m on agents fees. There's loads of other stuff that will make the June 2012 accounts even better reading. I.E. Virgin Sponsorship, 11/12 TV revenue and the half ST offer.

The only thing we can take from these accounts is that we are moving in the right direction and quickly approaching the appirations of the board, self-sufficiency!

 

Basically Fat Mike has been making a profit for himself by signing our best players and replacing them cheaply.

He got lucky last year but I fear that next season relegation could be upon us again if we are not careful and lose skillful players like Ba, Ben Arfa and Coloccini

 

We'll get there eventually.

 

We'd already be there if we had never gone down. Which was down to Ashley. So i am very slow to actually praise the man.

He's took on the debt as a loan. Good for him. It's in his interests. Why would he want to pay interest to banks when he can take the debt on himself?