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Has Ashley sold the catering rights at St James Park


Big Geordie

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Just been mentioned on Radio Newcastle that Ashley has sold off the Corporate catering rights at St James Park and has trousered £13million as a result. Can anyone confirm this? If it's true - where has the cash gone?

 

Under his matress.

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Guest Roger Kint

Just been mentioned on Radio Newcastle that Ashley has sold off the Corporate catering rights at St James Park and has trousered £13million as a result. Can anyone confirm this? If it's true - where has the cash gone?

 

£13m? You having a laugh?

 

For the record he couldnt 'trouser' it without it being shown in the clubs accounts not that the truth will matter like ;D

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http://www.caterersearch.com/Articles/2008/11/19/324725/sodexo-nets-38m-deal-with-newcastle-united-football.

 

Sodexo nets £38m deal with Newcastle United Football Club

(19 November 2008 09:00)

 

Sodexo has landed a five-year catering deal with Premiership football club Newcastle United, worth £38m in total turnover.

 

The caterer’s Sodexo Prestige division will provide public catering for up to 52,000 fans on match days and run one of the largest conference and banqueting facilities in the North-east.

 

Sodexo will employ 1,100 staff at the club’s catering, event and sales departments as a result of the deal.

 

Newcastle United’s operations director David Williamson said: “Newcastle United already has an award-winning reputation for its catering and conference and banqueting operations, and that will be further enhanced by our relationship with Sodexo Prestige.”

 

Sodexo Prestige already provides services at Ascot Racecourse in Surrey and at Everton Football Club and at Scotland's national stadium Hampden Park in Glasgow.

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WOW.................They did a deal with catering company a few years back for ALL the catering/functions etc to be ran by another company. That side of the business has a turnover off approx £7m to £8m per year.  I was told it was a cash up front deal, which made the at the time stories of bashing F.Shepherd about revenue streams seem strange.

 

 

UPDATE:Aye thats them Rich  :thup:

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If he's 'sold' the catering for £13m, presumably the person paying it expects to make more than that, say £15m?

 

What sort of proportion of our turnover would that mean is supposed to come from selling pies and Bovril?

 

About £7.6m per year if that article I posted from 2008 is correct. That's a lot of Bovril.

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If he's 'sold' the catering for £13m, presumably the person paying it expects to make more than that, say £15m?

 

What sort of proportion of our turnover would that mean is supposed to come from selling pies and Bovril?

 

About £7.6m per year if that article I posted from 2008 is correct. That's a lot of Bovril.

 

:lol: :thup:

 

That's what its worth to them of course (top line, turnover), I don't suppose they've paid the club anything like that figure or that it's been received up front and that £13m has been trousered by anyone.

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This article that was posted upthread:

 

http://www.caterersearch.com/Articles/2008/11/19/324725/sodexo-nets-38m-deal-with-newcastle-united-football.

 

Sodexo nets £38m deal with Newcastle United Football Club

(19 November 2008 09:00)

 

Sodexo has landed a five-year catering deal with Premiership football club Newcastle United, worth £38m in total turnover.

 

The caterer’s Sodexo Prestige division will provide public catering for up to 52,000 fans on match days and run one of the largest conference and banqueting facilities in the North-east.

 

Sodexo will employ 1,100 staff at the club’s catering, event and sales departments as a result of the deal.

 

Newcastle United’s operations director David Williamson said: “Newcastle United already has an award-winning reputation for its catering and conference and banqueting operations, and that will be further enhanced by our relationship with Sodexo Prestige.”

 

Sodexo Prestige already provides services at Ascot Racecourse in Surrey and at Everton Football Club and at Scotland's national stadium Hampden Park in Glasgow.

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It reads to me that they've won a contract from the club with which they expect to bring in £38m from selling food/drink at matches and running the clubs conferencing and banqueting facilities.

 

There'd be no point in NUFC paying someone to have the opportunity to make a profit from its fans.  They'll almost certainly pay NUFC for that opportunity.  Obviously while this drops our potential revenue it will also drop our outgoings and depending on how well we were running our catering operation it could be better for us financially (well I assume it must be or we wouldn't be doing it).

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Reads to me like the club is paying them to run the catering operations as many large organisations do.

 

NUFC will still take the money when you buy a pie or a posh ticket with a big sit down meal or hold a conference. By using this outside catering company the costs of supplying the catering become lower than they were when the catering was being operated in house and thus a higher profit margin.

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I don't know £7.6m a year seems like an awful lot of money to pay a company in order to lower the cost of our catering operations so we get a higher profit margin.  I mean how much money can we possibly make from selling food and drink?

 

Seems more likely to me that we'd charge them a fee to allow them to handle the entire operation and take all the profit from it.  As far as I know that's the kind of deal they have with Everton.  Apparently when Everton outsourced catering their revenue dropped by £6.5m because they were no longer recieving money directly from catering.

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