Mike Ashley

[alop123]

men i blandt må man vel kanskje betale 10 millioner for å få inn en god spiller, og da synes jeg det er synd at vi ikke har klart å få til det.

No skjønne du da, mykje kjekkare innlegg du hadde no syns eg! No e da no kje for seint då, me "kan" jo fortsatt få inn ein rimelig god spiss til rundt 10M£-tagen fortsatt... (as if!) Men håpet lever...

[Juma]

Right, here comes the wanted ?explanation? for the £35 million from the sale of Andy Carroll. Before I start, I want you to keep a few things in mind. These are the numbers from 2008/09 and 2009/10. Meaning we won?t see the finances for 2010/11 until May/June next year (2012). However, this sets up the earlier years, including pre-relegation and the year we were in the Championship. It should provide the foundations for calculating at least our current wage structure as far as we can guess. Guess being the important word here, as NUFC doesn?t release statements on individual fees received, or given from player transfers or wages. All we have is speculation from the press. This took me quite a while to gather information from, but I see it as vital, that before we start pointing fingers at Ashley, we should at least have a foundation based on facts. And here they are.

In summary what Shepherd left was a club that was losing over £30m a year, had debts of £70m, had no assets they could borrow more money against, and had a set of players on long, lucrative contracts. Ashley can get rid of the debt but the £30m annual losses with over paid players will take longer to sort out.

This has proven to be the case.

Upon his takeover, Ashley inherited a mortgage on the stadium: meaning they didn?t actually fully own their own stadium, and had a further cost of £4.5 million a year in mortgage payments. Once the club changed hands however, the mortgage providers got cold feet and demanded the remaining 8-9 years of payments in a single payment that Ashley had to cough up for. This was the first in a series of bills that landed at Ashley?s feet that he had to cover to keep the club afloat.

The wages have gone up from £63.4m to roughly £70m. If the first team squad is made up of say 25 players then they would all be getting closer to £3m each rather than just £2m each. A frightening figure, considering the on-field performances.

The Sky money has gone up dramatically, but the gate receipts and merchandise numbers are going the other way. The 2008 gate receipts were lower than those in 2007 despite the average league attendance going up. The 2009 gate receipts would likely be down 10% on 2008. The club shop sales would also be down due to fan boycotts.

Naturally, with a backdrop of shaky revenues we of course have massive wage growth. Wages managed to grow by over 40% over the period 04-05 to 08-09, with the club relegated with a wage bill of £71million, one of the highest in the Premier League. That is only bested by high and increasing amortization: a result of significant transfer spending and the most recent amortization figure of just under £20 million is higher than most sides, though lower than the top four average and the big spenders such as City and Spurs.

All this adds up to turnover declining compared to its 04-05 figure, after a drop of around 15% between 07-08 and 08-09. Operating losses of £9m, £11m, £24m and £25m from 04-05 to 07-08 point to fundamental concerns at the heart of the NUFC business model.  Ashley has had to dip into his own pocket on numerous occasions to pay off creditors to avoid administration proceedings and such a situation cannot go on forever.

Despite the new TV deal boosting revenues in the middle of the period,  declining league finishes have meant that Newcastle?s TV money hasn?t grown as much over the period as would be expected. This was because a lower league position only warrants a smaller percentage of the money over the period, but if the deal itself increases (as it did), Newcastle?s TV money will still increase.

At the time of their relegation, Premier League TV money contributed  43.7% of Newcastle?s earnings, little of which would have been replaced by the Football League television deal upon relegation though parachute payments of £11.2million cover about a third of the loss of the difference.

Commercial revenue doesn?t show the same constant growth as most other sides either. The sponsorship agreement with Northern Rock, a deal over a number of years with payments made by the bank each season, was paid wholly up-front to fund the purchase of Michael Owen.

The legal case resulting from the departure of ex-boss Kevin Keegan cost the club more than £5.3m. United?s wage bill soared to more than £71.1m by the end of its time in the Premier League. The sports billionaire has ploughed an extra £25.5m into the club?s coffers. And the Toon now owes owner Mike Ashley £111m.

Player costs worth more than £21m have been saved since relegation.

The director?s report, signed by MD Derek Llambias, says: ?A disappointing 2008/09 season for Newcastle United culminated in an 18th place finish in the FA Premier League and relegation to the Football League Championship for the 2009/10 season. The financial effects of relegation will be most evident in the financial statements for the year ending June 30 2010 but it has also impacted on the results for the year under review.?

It goes on to reveal the club?s turnover fell to £86.1m from £99.4m the year before.Despite the reduced income, the wage bill rose to £71.1m from £70m in 2008/9 and that meant salary costs ate up a staggering 82.6% of all the cash coming into the club. The playing registrations of certain players have been disposed of subsequent to the balance sheet date for a total consideration, net of associated costs, of £21,103,000.?

The document adds: ?Subsequent to the balance sheet date, the playing registrations of certain players have been acquired for total consideration, including associated costs of £3,221,000.? That will take account of the signing of players including Mike Williamson, Fabrice Pancrate and Danny Simpson. Costs relating to this matter, totaling £5,342,000 (including staff costs of £2,256,000) have been charged in full in the year to June 30 2009.

In January 2008, Sam Allardyce?s contract was terminated. Costs relating to this and the accompanying changes in backroom staff, totalling £4,597,000, were recognised in the prior year.

It is also revealed £1,357,000 was paid to the club?s solicitors Freshfields Bruckhaus Dennger for the services of former chairman Chris Mort, who was at St James? between June 2007-June 2008.

The Club made an operating loss for the year of £33.5 million, compared to £37.7 million in 2008/09.  The overall loss for the year after player trading was £17.1 million, compared to £15.2 million the year before.

Relegation to the Championship resulted in a 39 per cent reduction in turnover, from £86.1 million in 2008/09 to £52.4 million in 2009/10.  The greatest reduction was in TV and Media revenue which fell 57 per cent, from £37.6 million in 2008/09 to £16 million in 2009/10.

However, whilst most revenue streams fell by a significant amount, gate receipts improved.  Despite relegation, over one million fans visited St James? Park during the 2009/10 season, with an average league attendance of 43,388, the fourth highest football attendance in England.

The Club also managed to secure new key sponsorship deals with Puma as kit supplier and a long-term extension with its shirt sponsor Northern Rock, which will help the Club build its commercial and sponsorship revenues in the years to come.

The Club achieved a 24 per cent reduction in operating costs, from £98 million in 2008/09 to £74.4 million in 2009/10.

Wage costs were reduced by 33 per cent, from £71.1 million to £47.5 million, but the Club?s overall wage costs remained consistent with Premier League status.  The wages to turnover ratio increased to 90.6 per cent in 2009/10, up from 82.6 per cent in 2008/09.

?It has been a significant achievement to keep our overall loss at a level similar to the year before despite the impact of relegation, and our ability to do this has been helped  immeasurably by the continued financial support of Mike Ashley, who injected a further £42 million into the Club last year interest-free.?

 

Turnover                                                    2009/10 Results         2008/09 Results         % Change     

Total Turnover                                      £52.4 million                     £86.1 million                     (39%) 

Season Ticket Revenue                       £11.0 million                      £15.6 million                    (29%)

Gate Receipts                                         £6.5 million                        £5.5 million                      (18%)

Corporate Hospitality                             £2.8 million                        £6.7 million                     (58%)

Other Matchday Rec.                              £0.7 million                        £1.2 million                     (42%)

TV and Media Revenue                         £16.0 million                      £37.6 million                   (57%)

Commerc. Cater. & Sponsors             £15.4 million                      £19.4 million                   (21%)

Operating Expenses              2009/10 Results         2008/09 Results         % Change      

Total Expenses                               £74.4 million                  £98.0 million                (24%) 

Wage costs                                       £47.5 million                  £71.1 million                (33%)

Other Expenses                               £26.9 million                  £26.9 million

Wages to Turnover %                        90.6%                                 82.6%

There?s your numbers, stone cold. That means, in 09/10 season we ran the club with a loss of over £20 million pounds, further increasing the ever expanding loan to Mike Ashley.

There seems to be light at the end of the tunnel though. If you watch the figures from 08/09 PL season, our turnover is allot higher. We should be expecting about the same numbers in 10/11 season when it comes to turnover. However, with the strict wage structure in place, and transfer fees partly going in to fund the cost of running the club, and reducing its debt, our 11/12 season should see us coming closer than ever to our turnover match our expenses. And by 12/13 or even 13/14, the club should, in theory, be self-sufficient, if we remain in the PL. I think at that point is where MA should start claiming his money by bigger payments, reducing the overall debt, and making the club easier to sell should he want to.  You?ve got to remember, the club is only self sufficient when we can buy players without asking Mike to lend them to us and still pay our bills regarding operations and loans.

MA may only take £120 mill for the club itself, but the new owners would have to pay the remaining debt to Ashley in addition. Either from their own pockets or by mortgaging several of the club assets, putting us back in a, slightly improved, square one concerning finances.

What slot Mike Ashley has put the £35 million following the Carroll sale, I can only guess, but at least you have a slight indication where the money are going.

The 2010/2011 numbers should hold big improvements, but it won?t be enough just yet. Expect to see a chunk of any transfer fees to be withheld by Mike Ashley until the clubs running costs are stable.

It might not be what you wanted to hear from this article. But take comfort in that the club is being steered in the right direction financially. And don?t forget the effort MA puts into us having a top of the line youth system. Again, there is light at the end of the tunnel.

[Tim Buch]

men...men....men....pengebruk indikerer jo ambisjon, og Ashley har ikke vist noe ambisjoner....og....og....og...Gode spillere koster mer, sånn er det bare....liksom...basta....!....?

[torfinn]

Hahaha...

[Kristoffer]

"Arsène Wenger wants his new signings to be judged on their ability not their transfer fee."

Noko å tenke på, sidan det har vore ein del kritikk på at dei me har kjøpt ikkje har kosta oss meir.

Ja, jeg er sikker på at Arsenal-fansen sier akkurat det samme til ManU-fans og Chelski-fans
Sorry - men den ble for opplagt

[lgrinde]

"Arsène Wenger wants his new signings to be judged on their ability not their transfer fee."

Noko å tenke på, sidan det har vore ein del kritikk på at dei me har kjøpt ikkje har kosta oss meir.

Eg veit ikkje kva bås eg havnar i, men eg trur eg sjølv ligg ca midt i mellom dykk som har diskutert dette i lang tid. Vertfall midt i når det gjeld det ekstreme. Ekstremt negative og ekstremt positive. Det eg har meint og meinar er at må få fleire spelara inn, då eg tykkje mi manglar breidde på ein del plassar. Akkurat no ser det ut som ting skal skje her. Eg har ikkje orka lese det Juma la ut endå. Men tilbake til det Wenger seier. Det er vel opplagt. Men ein god spelar kostar jo pengar. Og dei seinaste åra har jo godaste Wenger tapt ligagull grunna at han ikkje har forsterka laget på visse plassar. Og han har komme under kraftig kritikk frå supportarane og ekspertar om nettopp dette. Ashley har gjort so mykje idiotisk at ein berre på grunn av det har lov til å vera skeptisk. Supportarane sa og ifrå under Arsenalkampen.
Men sjølvsagt skal ein ikkje bruka pengar ein ikkje har.

[Hughie]

Anbefaler på det sterkeste å lese det Juma har gjengitt. Meget god oppsummering rundt det meste, og sammenfaller i stor grad med det jeg har forsøkt å formidle i forhold til økonomien vår.

[Hughie]

Forsåvidt, og poenget er? Synes ikke det gjør fornuften noe mindre fornuftig selv om det er flere som over tid har forsøkt å formidle dette. 

[Hughie]

Ah, greit nok. 

[Anders]

I mangel på andre tråder som passer, slenger jeg det inn her:

@MsiDouglas Mark Douglas
Also, can confirm former SAFC boss Ricky Sbragia HAS been interviewed for a role at NUFC. Full details tomorrow

Noen som har lyst til å prøve å gjette hva slags rolle dette er? Skjønner at det ikke er manager-rollen

[torfinn]

Håper det har noe med utdeling av transfer-midler å gjøre... Det har det ikke vært mangel på lenger sør. Hva de skal brukes på derimot, det håper jeg ikke han har noe med å gjøre.

[Anders]

Håper nesten på styreformann jeg

[Juma]

I mangel på andre tråder som passer, slenger jeg det inn her:

@MsiDouglas Mark Douglas
Also, can confirm former SAFC boss Ricky Sbragia HAS been interviewed for a role at NUFC. Full details tomorrow

Noen som har lyst til å prøve å gjette hva slags rolle dette er? Skjønner at det ikke er manager-rollen

Tipper det er en trenerrolle for reserve eller U18 laget til Newcastle.

[Tim Buch]

Det er snakk om en rolle i akademiet. Høres bra ut for min del. Han har rykte for å være en veldig god trener, og spillerne i Sunderland likte han veldig godt.

[lgrinde]

Sure it would be nice for us to spend £15-20m on a striker, and if we're sitting here at 2am on September 1st without a left-back and striker brought in, again I could respect it.

For all del, men ein treng vel ikkje sei seg nøgde med 11.plass i all framtid heller. Og berre mi kunne greidd vinna Ligacupen eller FA-cupen ein sesong. Men til det eg har sitert; Viss mi har eller hadde hatt pengar til ein spiss til 15-20 mill so ser eg ikkje problemet med å kjøpe ein som for eksempel Sturridge. Slik er jo desverre fotballen vorte, og har vore ein god stund. Det er sjuke overgangssummar og lønningar. Eg er heilt einig i at ein kan ikkje bruka pengar ein ikkje har, men mi har pengar til å kjøpa ein erstattar for Enrique og klubben har sagt at mi skal kjøpe ein erstattar + ein spiss. Viss mi no sit utan noko av dette 1.september, korleis kan ein då forventa at supportarane skal godta og respektere dette?!. So her er eg einig i noko av det som verte skrive om klubben sin historikk plasseringsmessig, men ikkje med tanke på kva mi skal respektera med tanke på overgangar. Det er vel ikkje slik at klubben er so skakkøyrt at pengane frå Enrique-salet skal gå til å redda klubben, evt varmekablar ein eller annan stad...