Toonpack Posted June 9, 2011 Share Posted June 9, 2011 http://www.bbc.co.uk/news/business-13679632?utm_source=twitterfeed&utm_medium=twitter The proportion of income that Premier League clubs spend on wages hit a record 68% in 2009-10, a report into football finances by Deloitte says. While Manchester United spent 46% of its revenue on pay, rivals Manchester City splashed out a massive 107%. Chelsea again topped the wages bill, as they have done every season since 2002-03, at £174m. "This new high is worrying, something Uefa's financial fair play rules should address," said Deloitte's Dan Jones. 'Middle tier' Mr Jones said there were signs of wage discipline in clubs near the bottom of the Premier League, while those near the top earned such large revenues that it helped them keep the wage ratios down. "The problem is with the middle tier of clubs, those who are neither chasing a Uefa place or facing relegation," said Mr Jones. "And of course Manchester City and Chelsea are going to need to get wages under control for the financial fair play rules." Revenues of Europe's leading football leagues http://news.bbcimg.co.uk/media/images/53313000/gif/_53313826_euro_leagues_464.gif Those rules, which encourage football teams to balance revenues and costs, will start taking account of club's finances from next season. To obtain a Uefa licence to play in the Champions League or Europa League, a club has to meet those break-even financial requirements. 'Business challenge' The Deloitte report shows Premier League revenues increased by 2% to exceed £2bn for the first time in the 2009-10 season. "While football's revenue performance has been spectacular, sustainably managing its costs remains football's primary business challenge," Mr Jones added. Continue reading the main story TOP PREMIER LEAGUE WAGE BILLS 2009-10 Chelsea - £174m (£167m) Man City - £133m (£123m) Man Utd - £132m (£123m) Liverpool - £121m (£107m) Arsenal - £111m (£104m) Source: Deloitte, 2008-09 wage bills in brackets But the "relentless growth in wages" has resulted in operating margins in the top division falling from 16% to 4% over the lifetime of the Premier League. And other challenges remain - including debt, warnings from the government about football governance, and continued interest from tax and revenue authorities. Meanwhile, the overall operating losses for the top four divisions in England now outstrip the Premier League's profits. The 92 league clubs as a whole lose money on their day-to-day operations - and at the pre-tax level, losses have continued to grow, hitting £600m in 2009-10. Meanwhile, collective club debts stand at around £3.5bn. 'Credit challenge' There are many challenges in the divisions below the Premier League, where Deloitte says the Championship is "a league of real contrasts". Relegated clubs from the top tier receive the financial cushion of parachute payments, but many others in their league are feeling the pain of the tough financial environment. http://news.bbcimg.co.uk/media/images/53314000/gif/_53314130_five_leagues_464.gif Revenue growth of Europe's leading football leagues Matchday and commercial revenues are already reducing, and from 2012-13 the value of the new domestic TV deal will be about a quarter less than the present one. "Given the ongoing debt situation, and with credit continuing to be a major challenge, clubs will need to quickly adapt to their prospective trading environment," says Mr Jones. Continue reading the main story PREMIER LEAGUE FINANCES 2009-10 Increased revenues to nearly 2.5bn euros, 800m euros ahead of second highest revenue earning league, the Bundesliga Broadcasting revenue up 7% to £1,004m - the first £1bn revenue stream of any domestic football league Arsenal, Liverpool, Manchester United and Tottenham generated profits Large losses at Chelsea and Manchester City Pre-tax losses after financing and player trading hit record £445m Debt at £2.6bn, down from £3.3bn Non-interest bearing "soft" loans account for 38% of net debt Source: Deloitte Down the decades, the report observes, there have been many football funding models - investment from the City, then media companies, and now many clubs are owned by wealthy individuals. "A 'trophy asset' model - requiring ongoing investment in losses and delivering returns only in the form of capital growth on changes of ownership - remains prevalent as competitive pressure to win outweighs any desire to limit wage costs," it adds. However, the report says that professional football has proved itself to be robust - having in the past decade overcome the collapse of ITV Digital and Setanta, as well as come through the recent economic downturn. In fact, no Football League club has gone out of business since Maidstone in 1992. "Despite the challenges, English football has never been so popular," says Mr Jones. "Football clubs elsewhere in the world would no doubt be glad to trade their position for those of similar-sized English clubs, while other domestic sports look at football enviously." Interesting they point out only Madistone have "ceased to exist" yet don't mention that 54 clubs have been in Administration since '92 and that if normal commercial rules applied to football a good amount of them would indeed have gone "pop". Given the Revenue and the Govt (apparently) are challenging the "football creditors" rule, that landscape could change drastically if and when HMRC/Gov't wins, as they hopefully should. No doubt the "tee hee no-one's ceased to exist" crew, will latch onto Maidstone and equally ignore the fact that whilst debts are monstrous they are just about all underwritten by rich owners and not exclusively to financial institutions (as our were previously) which is a whole different ball game. Link to post Share on other sites More sharing options...
Guest Antec Posted June 9, 2011 Share Posted June 9, 2011 http://www.journallive.co.uk/north-east-news/todays-news/2011/06/09/newcastle-united-s-return-to-premier-league-is-good-for-top-flight-61634-28847135/2/#ixzz1OlgtCBHi The report claims that Newcastle United has debts totalling £288m with the club owing Mike Ashley around £133m. It is believed that the huge cash sum is owed to a top level company – known as St James Holdings Ltd – whose main focus is investment in the club. Link to post Share on other sites More sharing options...
quayside Posted June 9, 2011 Share Posted June 9, 2011 http://www.journallive.co.uk/north-east-news/todays-news/2011/06/09/newcastle-united-s-return-to-premier-league-is-good-for-top-flight-61634-28847135/2/#ixzz1OlgtCBHi The report claims that Newcastle United has debts totalling £288m with the club owing Mike Ashley around £133m. It is believed that the huge cash sum is owed to a top level company – known as St James Holdings Ltd – whose main focus is investment in the club. That's yet another case of the press (local in this case) picking up random numbers and putting dubious interpretations on them. St James Holdings is 100% owned and funded by Mike Ashley. He used the company to buy the club for £138 million and also to loan the club a further £150 million making £288 million in total. The club does not owe Ashley for what he paid for it but it does owe him for the money he loaned. So the club does not have debt of £288 million, the figure is £150 million. Link to post Share on other sites More sharing options...
Taylor Swift Posted June 9, 2011 Share Posted June 9, 2011 If you compare football to other popular sports, there is still a lot of room for revenue growth. I think you could see broadcasting revenues increasing significantly in the future, and broadcasting revenue from abroad will come to dominate revenue growth, much as foreign box office sales are increasingly becoming more important for film companies. But with increasing revenue, you can guarantee that wages will continue to increase, which is why it might be a smart thing for Ashley to tie all our players to long-term deals. Link to post Share on other sites More sharing options...
mrmojorisin75 Posted June 9, 2011 Share Posted June 9, 2011 http://www.journallive.co.uk/north-east-news/todays-news/2011/06/09/newcastle-united-s-return-to-premier-league-is-good-for-top-flight-61634-28847135/2/#ixzz1OlgtCBHi The report claims that Newcastle United has debts totalling £288m with the club owing Mike Ashley around £133m. It is believed that the huge cash sum is owed to a top level company – known as St James Holdings Ltd – whose main focus is investment in the club. That's yet another case of the press (local in this case) picking up random numbers and putting dubious interpretations on them. St James Holdings is 100% owned and funded by Mike Ashley. He used the company to buy the club for £138 million and also to loan the club a further £150 million making £288 million in total. The club does not owe Ashley for what he paid for it but it does owe him for the money he loaned. So the club does not have debt of £288 million, the figure is £150 million. we still have 150,000,000 debt? fucking hell man Link to post Share on other sites More sharing options...
Dave Posted June 9, 2011 Share Posted June 9, 2011 http://www.journallive.co.uk/north-east-news/todays-news/2011/06/09/newcastle-united-s-return-to-premier-league-is-good-for-top-flight-61634-28847135/2/#ixzz1OlgtCBHi The report claims that Newcastle United has debts totalling £288m with the club owing Mike Ashley around £133m. It is believed that the huge cash sum is owed to a top level company – known as St James Holdings Ltd – whose main focus is investment in the club. That's yet another case of the press (local in this case) picking up random numbers and putting dubious interpretations on them. St James Holdings is 100% owned and funded by Mike Ashley. He used the company to buy the club for £138 million and also to loan the club a further £150 million making £288 million in total. The club does not owe Ashley for what he paid for it but it does owe him for the money he loaned. So the club does not have debt of £288 million, the figure is £150 million. we still have 150,000,000 debt? fucking hell man £115,000,000 actually. Link to post Share on other sites More sharing options...
Sifu Posted June 9, 2011 Share Posted June 9, 2011 http://www.journallive.co.uk/north-east-news/todays-news/2011/06/09/newcastle-united-s-return-to-premier-league-is-good-for-top-flight-61634-28847135/2/#ixzz1OlgtCBHi The report claims that Newcastle United has debts totalling £288m with the club owing Mike Ashley around £133m. It is believed that the huge cash sum is owed to a top level company – known as St James Holdings Ltd – whose main focus is investment in the club. That's yet another case of the press (local in this case) picking up random numbers and putting dubious interpretations on them. St James Holdings is 100% owned and funded by Mike Ashley. He used the company to buy the club for £138 million and also to loan the club a further £150 million making £288 million in total. The club does not owe Ashley for what he paid for it but it does owe him for the money he loaned. So the club does not have debt of £288 million, the figure is £150 million. we still have 150,000,000 debt? f***ing hell man £115,000,000 actually. Still one of the lowest in the PL though? Link to post Share on other sites More sharing options...
Dave Posted June 9, 2011 Share Posted June 9, 2011 Link to post Share on other sites More sharing options...
Dokko Posted June 9, 2011 Share Posted June 9, 2011 Can't wait till we break even. Link to post Share on other sites More sharing options...
mrmojorisin75 Posted June 9, 2011 Share Posted June 9, 2011 wow, i'm amazed at that tbh especially as we've not been paying uncle mike interest on it...imagine if it'd still been owed to the banks these last few years Link to post Share on other sites More sharing options...
mrmojorisin75 Posted June 9, 2011 Share Posted June 9, 2011 Can't wait till we break even. gonna be an agonising time for you then kidda 'cause it ain't happening quick is it? Link to post Share on other sites More sharing options...
Dokko Posted June 9, 2011 Share Posted June 9, 2011 wow, i'm amazed at that tbh especially as we've not been paying uncle mike interest on it...imagine if it'd still been owed to the banks these last few years We wouldn't exist. Link to post Share on other sites More sharing options...
Dokko Posted June 9, 2011 Share Posted June 9, 2011 Can't wait till we break even. gonna be an agonising time for you then kidda 'cause it ain't happening quick is it? 5 years he reckons, I'd be happy with that. Link to post Share on other sites More sharing options...
ikri Posted June 9, 2011 Share Posted June 9, 2011 wow, i'm amazed at that tbh especially as we've not been paying uncle mike interest on it...imagine if it'd still been owed to the banks these last few years A huge chunk of that figure is from the early repayment of the stadium expansion loan which was required when the club changed ownership. Link to post Share on other sites More sharing options...
Guest johnson293 Posted June 9, 2011 Share Posted June 9, 2011 http://www.journallive.co.uk/north-east-news/todays-news/2011/06/09/newcastle-united-s-return-to-premier-league-is-good-for-top-flight-61634-28847135/2/#ixzz1OlgtCBHi The report claims that Newcastle United has debts totalling £288m with the club owing Mike Ashley around £133m. It is believed that the huge cash sum is owed to a top level company – known as St James Holdings Ltd – whose main focus is investment in the club. That's yet another case of the press (local in this case) picking up random numbers and putting dubious interpretations on them. St James Holdings is 100% owned and funded by Mike Ashley. He used the company to buy the club for £138 million and also to loan the club a further £150 million making £288 million in total. The club does not owe Ashley for what he paid for it but it does owe him for the money he loaned. So the club does not have debt of £288 million, the figure is £150 million. we still have 150,000,000 debt? fucking hell man £115,000,000 actually. He he... I see what you did there. Link to post Share on other sites More sharing options...
mrmojorisin75 Posted June 9, 2011 Share Posted June 9, 2011 Can't wait till we break even. gonna be an agonising time for you then kidda 'cause it ain't happening quick is it? 5 years he reckons, I'd be happy with that. 5 years to claw back 115m...20+ a year, wonder which part of the club he's gonna get that from, graeme carr might have his work cut out but on the plus side for him he's likely got 5 years work ahead of him Link to post Share on other sites More sharing options...
mrmojorisin75 Posted June 9, 2011 Share Posted June 9, 2011 wow, i'm amazed at that tbh especially as we've not been paying uncle mike interest on it...imagine if it'd still been owed to the banks these last few years A huge chunk of that figure is from the early repayment of the stadium expansion loan which was required when the club changed ownership. understood, but if someone else had of taken the club using loaned money, as was the style at the time, they'd have been saddled with it all and the interest still, on the other hand they might not have presided so well over our relegation i suppose Link to post Share on other sites More sharing options...
Dokko Posted June 9, 2011 Share Posted June 9, 2011 Maybe he is willing to write off a portion of the debt once the club starts paying itself back after 5 years? It would mean the club is in prime state to be sold, something I'm sure is on his mind at some point. I can't see how he'd get all that money back in that space of time, even if we kept buying to sell. Link to post Share on other sites More sharing options...
Toonpack Posted June 9, 2011 Share Posted June 9, 2011 wow, i'm amazed at that tbh especially as we've not been paying uncle mike interest on it...imagine if it'd still been owed to the banks these last few years A huge chunk of that figure is from the early repayment of the stadium expansion loan which was required when the club changed ownership. A "huge chunk" ?? around £40 Million is all Link to post Share on other sites More sharing options...
Guest Roger Kint Posted June 9, 2011 Share Posted June 9, 2011 wow, i'm amazed at that tbh especially as we've not been paying uncle mike interest on it...imagine if it'd still been owed to the banks these last few years A huge chunk of that figure is from the early repayment of the stadium expansion loan which was required when the club changed ownership. A "huge chunk" ?? around £40 Million is all Wasnt it closer to £70m? Link to post Share on other sites More sharing options...
quayside Posted June 9, 2011 Share Posted June 9, 2011 http://www.journallive.co.uk/north-east-news/todays-news/2011/06/09/newcastle-united-s-return-to-premier-league-is-good-for-top-flight-61634-28847135/2/#ixzz1OlgtCBHi The report claims that Newcastle United has debts totalling £288m with the club owing Mike Ashley around £133m. It is believed that the huge cash sum is owed to a top level company – known as St James Holdings Ltd – whose main focus is investment in the club. That's yet another case of the press (local in this case) picking up random numbers and putting dubious interpretations on them. St James Holdings is 100% owned and funded by Mike Ashley. He used the company to buy the club for £138 million and also to loan the club a further £150 million making £288 million in total. The club does not owe Ashley for what he paid for it but it does owe him for the money he loaned. So the club does not have debt of £288 million, the figure is £150 million. we still have 150,000,000 debt? f***ing hell man £115,000,000 actually. He he... I see what you did there. Me too I've no idea if any of the Carroll money is going that way but whatever Ashley is in this for isn't pure and unconditional love of Newcastle United. So it's quite possible that at some point he is going to take money out to reduce his loan. Link to post Share on other sites More sharing options...
quayside Posted June 9, 2011 Share Posted June 9, 2011 wow, i'm amazed at that tbh especially as we've not been paying uncle mike interest on it...imagine if it'd still been owed to the banks these last few years A huge chunk of that figure is from the early repayment of the stadium expansion loan which was required when the club changed ownership. A "huge chunk" ?? around £40 Million is all Wasnt it closer to £70m? Ashley had to cough up £70 million shortly after he bought us but not all of that was stadium debt, some of it was simply working capital debt that allowed the club to pay its way. I haven't got any info to hand but Toon Pack's figure of £40 million for the stadium debt sounds good. Link to post Share on other sites More sharing options...
Toonpack Posted June 9, 2011 Share Posted June 9, 2011 wow, i'm amazed at that tbh especially as we've not been paying uncle mike interest on it...imagine if it'd still been owed to the banks these last few years A huge chunk of that figure is from the early repayment of the stadium expansion loan which was required when the club changed ownership. A "huge chunk" ?? around £40 Million is all Wasnt it closer to £70m? Ashley had to cough up £70 million shortly after he bought us but not all of that was stadium debt, some of it was simply working capital debt that allowed the club to pay its way. I haven't got any info to hand but Toon Pack's figure of £40 million for the stadium debt sounds good. £45 Mill was the mortgage (ssorry got mixed up) the other £30 mill was other loans/overdraft that had to be paid, there was also £27Mill owed on transfers. If he'd done proper due dilligence he'd have run a mile, just like the other prospective buyers did the year before. Link to post Share on other sites More sharing options...
quayside Posted June 9, 2011 Share Posted June 9, 2011 wow, i'm amazed at that tbh especially as we've not been paying uncle mike interest on it...imagine if it'd still been owed to the banks these last few years A huge chunk of that figure is from the early repayment of the stadium expansion loan which was required when the club changed ownership. A "huge chunk" ?? around £40 Million is all Wasnt it closer to £70m? Ashley had to cough up £70 million shortly after he bought us but not all of that was stadium debt, some of it was simply working capital debt that allowed the club to pay its way. I haven't got any info to hand but Toon Pack's figure of £40 million for the stadium debt sounds good. £40 Mill was the mortgage (might have been £45, but certainly no more) the other £30 mill was other loans/overdraft that had to be paid, there was also £27Mill owed on transfers. If he'd done proper due dilligence he'd have run a mile, just like the other prospective buyers did the year before. And of course Barclays wasted no time in calling the whole lot in at the first opportunity. I wonder why? Link to post Share on other sites More sharing options...
Toonpack Posted June 9, 2011 Share Posted June 9, 2011 wow, i'm amazed at that tbh especially as we've not been paying uncle mike interest on it...imagine if it'd still been owed to the banks these last few years A huge chunk of that figure is from the early repayment of the stadium expansion loan which was required when the club changed ownership. A "huge chunk" ?? around £40 Million is all Wasnt it closer to £70m? Ashley had to cough up £70 million shortly after he bought us but not all of that was stadium debt, some of it was simply working capital debt that allowed the club to pay its way. I haven't got any info to hand but Toon Pack's figure of £40 million for the stadium debt sounds good. £40 Mill was the mortgage (might have been £45, but certainly no more) the other £30 mill was other loans/overdraft that had to be paid, there was also £27Mill owed on transfers. If he'd done proper due dilligence he'd have run a mile, just like the other prospective buyers did the year before. And of course Barclays wasted no time in calling the whole lot in at the first opportunity. I wonder why? Dread to think what'd have happened if they'd done it when we didn't have a thick billionaire owner !! Link to post Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now