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Question for financial types:

 

Presuming we can offload our ridiculously high earners from the wage bill, how much more money could Ashley theoretically lose than he has already?

 

I suppose a quick way of looking at it is that on a turnover (income) of £100 million the club is losing maybe £20 million a year in the Premiership. Lets say incoming revenue drops to £60 million in the Championship so Ashley needs to save £40 milion of costs to get back to where he was in the Prem and he needs to save about £60 million of costs to get to break even. You might be able to drop £30 million off the wage bill (if you are lucky) so he would still be well out of pocket.

 

 

Hmm, still quite a lot then. Cheers.

 

The club is a financial basket case imo and has been for a few years but, as it stands right now, it is onto a whole new level.

 

Just waiting for Ashley to offer a free pair of trainers and a Sports Direct t shirt to anyone who sticks a bid in before midnight tbh.

on the other hand £100mill for a club of this size  with no creditors and potential (ie get the wage bill down and return to the prem) should attract some business.

 

surely that it what business is about ?

 

You are absolutely right that £100 million, with the Ashley debt written off, is not a bad deal for someone who knows what they are doing, has deep pockets and can take a longish view. But I did use the words "as it stands" and, as it stands, the club can expect income of £60 million next year and that's being optimistic. Costs in cash terms run at about £110 million a year. So far the only things that will reduce the current annual costs are Viduka, Owen and Cacapa walking and some lower paid staff being made redundant - lets say thats savings of  £15 million. So, as it stands, the current cost base is about £95 million and no one, right now, is working on doing anything to reduce that further. Therefore, as it stands, the projected loss next year is about £35 million - and that will need funding with cash just to stand still. The more time that passes without someone getting to work on all this the more impossible it will be to do anything about it and the less attractive the prospect of buying the club becomes.

 

And I have seen no evidence from Ashley that he is writing the loan off btw. Caulkin in the Times says he was prepared to (and maybe he has an inside track), but the statement on the club website says it's £100 million to buy the club, and if you buy the club for £100 million you still owe Ashley his money for the loan. 

 

At the moment we don't seem to be doing anything to sell the neccesary players.  However you can bet the players agents are working hard to get deals sorted.  The likes of Martins, Coloccini, Jonas are certain to go no matter how much time the likes of Ashley wastes.  That saves us about £24m in wages and will bring in at least £20m in transfer fees.

 

Also did you really expect the statement on the site to mention the money he's owed?  At the end of the day nobody will buy the club for £200m, so he will have to right off that £100m.

 

No I really didn't I was just making the point that the only official mention of a price for the club is £100 million and that would leave the debt owing. And the only mention of debt being written off was in the press. And if Ashley hadn't demonstrated his cluelessness so repeatedly I would have total confidence that you are right about him realising that he has to write the debt off or at least discount it. However right now and based on past experience I wouldn't put it past him to reject sensible offers and end up as our owner at the start of next season with the club in complete chaos. 

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A quote that's quite true- "the night is darkest before the dawn".

 

Ha, i received that via text about 5 minutes after we got relegated... Still f***ing dark here

 

Dawn is about to break.

and shes a big girl
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A quote that's quite true- "the night is darkest before the dawn".

 

Ha, i received that via text about 5 minutes after we got relegated... Still f***ing dark here

 

Dawn is about to break.

and shes a big girl

 

Dirty bastard  ;D

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'Confirmed to the BBC' that is. Same stuff said regarding plans.

 

BBC have contacted these people or they are just rehashing the chron article.

 

Just seems to fantastic to be true.

 

 

You're down an out, no money, cant pay the mortgage cant afford to feed the kids

 

then out of the blue a guy says "heres a million quid, oh and i think you should build an extension on your house"

 

As in the BBC have contacted them themselves.

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Guest firetotheworks

Let's hope McMahon isn't director of football.

 

 

Juninho?

 

:kinnear:

 

 

 

Hahaha, it was going alright up until then too. I wonder when that was recorded though. I cant imagine him putting Deco in at the moment.

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From Todays 5iver -

 

"Dear Mr Ashley,

 

We are emailing you to inquire about the possibility of buying Newcastle United Football Club for £100m, as advertised on your website. We have always fancied the idea of owning our own football club and are currently in a position to invest in one, having recently received winning notification from Mr Austin Connor, a claim agent with the Ontario Lottery Corporation, that we have won exactly that amount in their latest draw for the promotion of the 2010 Soccer World Cup to be hosted in South Africa. We have been assured that the £100m will be deposited in our bank account just as soon as we have sent Mr Connor the £10,000 he needs to help facilitate the processing of our claim.

 

Speaking of which, we were wondering if, as a gesture of goodwill ahead of our imminent purchase of your football club, you might be able to loan us this £10,000, as our own life savings are currently tied up helping Dr (Mrs) Mariam Abacha (M.O.N), the wife of the late head of state and commander-in-chief of the armed forces of the federal republic of Nigeria, who recently emailed us out of the blue to inquire if we might assist her in getting the $80m supposedly misappropriated by her late husband out of Nigeria, packed in trunk boxes in such a way to forestall anybody else having access to it. Once we have received our own 40% share of this bounty, we will obviously repay your £10,000 in full, with 15% on top for your co-operation. All we need from you is an assurance that you can handle the amount involved comfortably and that we can also trust you with this very arrangement. Oh ... and a cheque for £10,000 made out to us.

 

Obviously we can imagine that a businessman as shrewd as yourself might be wondering why it is that somebody such as ourselves, who are London-based, overweight, fond of a beer and with neither ties to the north-east nor any discernible trace of business acumen would be willing to pay such an enormous amount of money for a football club, as it seems like the kind of foolhardy impulse-buy that only a congenital idiot would undertake, particularly without checking the books first. But you look trustworthy and have a nice face, not unlike that of the idiot that one might encounter sitting on a stile outside any English village.

 

We look forward to hearing from you by return mail,

 

All the best,

 

The Fiver.

 

PS While we are aware that you are looking for £100m for your club, we were wondering if perhaps you'd be willing to consider selling it for a knockdown price, as there are certain parts of it that we don't actually want: the entire playing staff, those fat blokes whose job it is to convene outside it and cheer raucously every time a new consignment of stationery is delivered to the club office, Shearer's bar, Shearer's tattoo parlour, Shearer's replica shirt shop, Shearer Stottie cake shop and Shearer."

 

:shifty:

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Let's hope McMahon isn't director of football.

 

 

Juninho?

 

:kinnear:

 

 

 

Hahaha, it was going alright up until then too. I wonder when that was recorded though. I cant imagine him putting Deco in at the moment.

 

I think he meant diego

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Guest toonlass

From the bbc sports website

 

Singapore group plans Magpies bid 

 

Mike Ashley is willing to sell for £100m - £34.4m less than what he paid

A Singapore-based group which includes former Liverpool midfielder Steve McMahon is ready to table a bid for Newcastle, BBC Sport has learned.

 

The Profitable Group claims that it would keep Alan Shearer on as manager if successful.

 

However, Newcastle say they are yet to be contacted by the group.

 

Current owner Mike Ashley put the club up for sale for £100m following the Magpies' relegation from the Premier League last season.

 

Keith Harris, chairman of investment bank Seymour Pierce, has been appointed to broker a deal, which he expects to be completed by the end of June.

 

He said on Monday that he had already been in contact with "two or three" interested parties.

 

606: DEBATE

It sounds like interest is being roused from investors given the state of the club and the initial potential it could return to a viable and responsible owner

 

overseasTOON

The Profitable Group, for whom McMahon is commercial director, is the first company to declare its interest in public.

 

According to its official website, the group "exists to increase the wealth of its clients, its employees and its owners, through the provision of strategically selected investment opportunities."

 

Time is of the essence for Newcastle, who remain without a manager as they prepare for life in the Championship.

 

Shearer, who took charge of the Magpies on a temporary basis at the end of last season, has presented his future plans to Ashley, but the owner is unwilling to appoint a full-time manager because prospective buyers are likely to want to make their own appointment.

 

Season ticket-holders are due to receive their renewal notices this week, but many may be unwilling to commit themselves as long as the unpopular Ashley remains owner and fans' favourite Shearer is not guaranteed a job.

 

 

 

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Let's hope McMahon isn't director of football.

 

 

Juninho?

 

:kinnear:

 

 

 

Hahaha, it was going alright up until then too. I wonder when that was recorded though. I cant imagine him putting Deco in at the moment.

 

How can that strawberry scouse inspire confidence in anything serious, he just smacks of being a highly paid mug for these people to stick in the spotlight to hawk their dodgy investments.  I really don't have a terribly good feeling about this Profitable Group....er....group. :no:

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Guest firetotheworks

whats the point of that video?  any moron on earth could real out a list of names of the best paid champ league players.

 

No relation to actual football.  all just fantasy.

 

I think you're missing the point, its not about him picking fantasy players, its about him picking his World XI at the moment and including Deco and Deigo, and not knowing Deigos name. Its hardly a big deal, but the original point was that someone hoped he wasn't going to be DOF based on that.

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So who would we want in what roles?

 

Kenny Dalglish as DOF?

 

Steve McMahon as Chairman?

 

Vince McMahon as HT entertainment?

 

Oh and Darren Venn?

 

Probably far too early to speculate mind.

 

Vinnie Mac is worth about $600million, so I sent WWE an e-mail in my boredom, suggesting it would be a good idea to buy us out. How sad am I?

 

I don't know who follows American sports, but there was recently a bit of a slanging match between him and Arsenal's Stan Kroenke......it'd be a good way to get revenge. However, I don't know his relationship with Hicks, Gillett, Lerner, the Glazers etc.

 

Anything to get rid of Fat Mike. Maybe he could join McMahon's "Kiss my Ass Club"!

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Guest Alan Shearer 9

Ashley's released a statement to SNN emailed David Craig again, on the yellow ticker, "I red sum of the emailz on the bog wen i was havin a shit and some1 said they pay me 100 million so I say no make it 200 million because I am the businessman." Updates to follow.

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Guest BooBoo

So...nobody else even interested in the idea the club could ultimately be run (or partly run) by a supporters' trust a la Barcelona?

 

???

 

That would be disasterous.

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Ashley's released a statement to SNN emailed David Craig again, on the yellow ticker, "I red sum of the emailz on the bog wen i was havin a s*** and some1 said they pay me 100 million so I say no make it 200 million because I am the businessman." Updates to follow.

 

 

I can't believe you have an office in the bog    :celb:

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