nufc losing £500,000 a week

[Guest Roger Kint]

The figures are a bit worrying. A weekly loss of £500k works out at annual loss of £26m, and that’s after receiving a £12m parachute payment and making a net transfer profit of at least £10m.  That means that if we go up the extra £35m in TV money won’t even cover the losses the club are incurring under the current set up. Where is the money for team strengthening going to come from, could it be a case of having to cut the wage bill further?

 

 

No we havent

[jdckelly]

I believe that the actual method of how it was being done was that the shares in Newcastle were being bought for a £1, and the £110m+ loan to Ashley (as it was then) was being bought for what we all think of as the sale price. So technically the loan isn't being written off from the clubs point of view, it is just being assigned to the new owner who buys the debt, but since the shares only cost £1 then the position is pretty much the same.

 

I'm no tax expert, but from the little I do know I think that would mean that Ashley would face a massive loss on the share sale (£100m+), but might be able to move that loss around other companies in the group to offset against any gains, meaning the actual loss to Ashley would be a lot less (but still huge of course). But he wouldn't have been entitled to any more payments i.e. to sell the club for £80m but then start charging interest in the loans - he would have no further interest in NUFC.

 

In a nutshell, the buyer would pay Ashley £80m as a settlement on the £110m+ loans outstanding (£30m loss)...and £1 for the club (£134m loss).

 

Again, i don't buy it, but if it is the case, it's a horrible indictment of his  purchase and his running of the club.  He's every bit as much to blame as anyone that preceded him at the helm, probably moreso. 

 

He increased the wage bill at the club by over 10% in his first year, paid out large redundancy packages to two managers in his first 18 months and got us relegated within two years.

putting it like that is like saying that as shearer was manager when we got relegated then it is solely his fault.

 

Don't be silly.

 

I don't think I said anyone has been solely to blame for anything.

 

Shearer was in charge for 8 games. He took us from being 2 points from safety to a finish 1 point from safety (closer to survival).  We'd taken 6 points from the last eight games before he came in and he won 5 points from the last 8 games (only slightly worse).  He spent nothing.  He didin't have the time or the power to make the situation any worse.

 

Completely different to spending 18 months following the policy of your predecessor (badly), then blaming your predecessor and his policy for all the ills that have befallen the club.

are you telling me that "He increased the wage bill at the club by over 10% in his first year, paid out large redundancy packages to two managers in his first 18 months and got us relegated within two years." wasn't meant to intimate that you held him responsible ?

 

did he spend 18months following the policy of fred. seems more like one summer to me.

 

I said it above..."He's every bit as much to blame as anyone that preceded "

 

It was about 15 months after buying the club he gave Coloccini his current contract used as a prime example of the crippling wage bill.

i'd like to actually know how much coloccini's on. i've heard everywhere from £45,000 to £80,000.

 

like yourself i blame him in part, my apologies as i thought you were, like many, attempting to make out it was all his fault.

At what point does the state of the club’s finances become Ashley’s fault then?  When does he become responsible for what’s happening at the club?

 

The figures are a bit worrying. A weekly loss of £500k works out at annual loss of £26m, and that’s after receiving a £12m parachute payment and making a net transfer profit of at least £10m.  That means that if we go up the extra £35m in TV money won’t even cover the losses the club are incurring under the current set up. Where is the money for team strengthening going to come from, could it be a case of having to cut the wage bill further?

 

 

I dunno, but...

 

1) The "£500,000 a week" isn't some gospel figure. It was an unnamed "source" in a half-baked story in a crap newspaper. If it refers to anything, it's probably to the £20 million Ashley was announced as putting in after no one came up with the money to buy the club.

 

2) If we go up, and the extra TV money etc then covers costs, then Ashley's £20 million next year might go to funding playing purchases rather than making up the shortfall.

 

3) Won't some of our higher earners drop off the wage bill anyway after this season? Butt, for example.

 

4) Isn't there money soon to come in from a new shirt sponsorship deal?

on 3, correct butts contract is up so 50k plus free right there.

4 yes the new deals start next season

[Guest malandro]

The figures are a bit worrying. A weekly loss of £500k works out at annual loss of £26m, and that’s after receiving a £12m parachute payment and making a net transfer profit of at least £10m.  That means that if we go up the extra £35m in TV money won’t even cover the losses the club are incurring under the current set up. Where is the money for team strengthening going to come from, could it be a case of having to cut the wage bill further?

 

 

No we havent

Oh yes we have

[OzzieMandias]

The figures are a bit worrying. A weekly loss of £500k works out at annual loss of £26m, and that’s after receiving a £12m parachute payment and making a net transfer profit of at least £10m.  That means that if we go up the extra £35m in TV money won’t even cover the losses the club are incurring under the current set up. Where is the money for team strengthening going to come from, could it be a case of having to cut the wage bill further?

 

 

No we havent

Oh yes we have

 

I don't know what figures you're basing the transfer "profit" on, as no fees seem to have been announced.

[Guest malandro]

I believe that the actual method of how it was being done was that the shares in Newcastle were being bought for a £1, and the £110m+ loan to Ashley (as it was then) was being bought for what we all think of as the sale price. So technically the loan isn't being written off from the clubs point of view, it is just being assigned to the new owner who buys the debt, but since the shares only cost £1 then the position is pretty much the same.

 

I'm no tax expert, but from the little I do know I think that would mean that Ashley would face a massive loss on the share sale (£100m+), but might be able to move that loss around other companies in the group to offset against any gains, meaning the actual loss to Ashley would be a lot less (but still huge of course). But he wouldn't have been entitled to any more payments i.e. to sell the club for £80m but then start charging interest in the loans - he would have no further interest in NUFC.

 

In a nutshell, the buyer would pay Ashley £80m as a settlement on the £110m+ loans outstanding (£30m loss)...and £1 for the club (£134m loss).

 

Again, i don't buy it, but if it is the case, it's a horrible indictment of his  purchase and his running of the club.  He's every bit as much to blame as anyone that preceded him at the helm, probably moreso. 

 

He increased the wage bill at the club by over 10% in his first year, paid out large redundancy packages to two managers in his first 18 months and got us relegated within two years.

putting it like that is like saying that as shearer was manager when we got relegated then it is solely his fault.

 

Don't be silly.

 

I don't think I said anyone has been solely to blame for anything.

 

Shearer was in charge for 8 games. He took us from being 2 points from safety to a finish 1 point from safety (closer to survival).  We'd taken 6 points from the last eight games before he came in and he won 5 points from the last 8 games (only slightly worse).  He spent nothing.  He didin't have the time or the power to make the situation any worse.

 

Completely different to spending 18 months following the policy of your predecessor (badly), then blaming your predecessor and his policy for all the ills that have befallen the club.

are you telling me that "He increased the wage bill at the club by over 10% in his first year, paid out large redundancy packages to two managers in his first 18 months and got us relegated within two years." wasn't meant to intimate that you held him responsible ?

 

did he spend 18months following the policy of fred. seems more like one summer to me.

 

I said it above..."He's every bit as much to blame as anyone that preceded "

 

It was about 15 months after buying the club he gave Coloccini his current contract used as a prime example of the crippling wage bill.

i'd like to actually know how much coloccini's on. i've heard everywhere from £45,000 to £80,000.

 

like yourself i blame him in part, my apologies as i thought you were, like many, attempting to make out it was all his fault.

At what point does the state of the club’s finances become Ashley’s fault then?  When does he become responsible for what’s happening at the club?

 

The figures are a bit worrying. A weekly loss of £500k works out at annual loss of £26m, and that’s after receiving a £12m parachute payment and making a net transfer profit of at least £10m.  That means that if we go up the extra £35m in TV money won’t even cover the losses the club are incurring under the current set up. Where is the money for team strengthening going to come from, could it be a case of having to cut the wage bill further?

 

 

I dunno, but...

 

1) The "£500,000 a week" isn't some gospel figure. It was an unnamed "source" in a half-baked story in a crap newspaper. If it refers to anything, it's probably to the £20 million Ashley was announced as putting in after no one came up with the money to buy the club.

 

2) If we go up, and the extra TV money etc then covers costs, then Ashley's £20 million next year might go to funding playing purchases rather than making up the shortfall.

 

3) Won't some of our higher earners drop off the wage bill anyway after this season? Butt, for example.

 

4) Isn't there money soon to come in from a new shirt sponsorship deal?

I dunno either.  I’m just running with the premise of this thread.

 

It would do everybody a big favour if Ashley got himself on the TV and explained what has been happening with the clubs finances since he took over, what the clubs financial position is now, and what the plan is for the future. He‘s far too happy to let the media rumour mill run unchecked. If he’s got a plan to get one of the best supported clubs in Europe back where one of the best supported clubs in Europe should be, then let’s hear it from the horse’s mouth. As long as he continues to say nowt the suspicion will always remain that he’s got something to hide.

 

PS, At what point does the state of the club’s finances become Ashley’s fault?

 

[Guest malandro]

The figures are a bit worrying. A weekly loss of £500k works out at annual loss of £26m, and that’s after receiving a £12m parachute payment and making a net transfer profit of at least £10m.  That means that if we go up the extra £35m in TV money won’t even cover the losses the club are incurring under the current set up. Where is the money for team strengthening going to come from, could it be a case of having to cut the wage bill further?

 

 

No we havent

Oh yes we have

 

I don't know what figures you're basing the transfer "profit" on, as no fees seem to have been announced.

If no fees have been announced how do you know we haven’t made a £10m+ in the transfer market?

 

This financial year we’ve sold Martins for (a widely reported) £9m. Bassong (for a widely reported) £8m, and Duff for fee the press didn’t seem to care about. How much do you think Simpson, Best, Williamson and Routledge cost?

 

[madras]

At what point does the state of the club’s finances become Ashley’s fault?

 

 

everyone will have their own view on this. the trick is to get the finances into a position that will allow us to invest in the playing side without just racking up bigger debts year. on year. like i've said previously i don't even mind running at a manageable loss if all is going well on the pitch.

[madras]

The figures are a bit worrying. A weekly loss of £500k works out at annual loss of £26m, and that’s after receiving a £12m parachute payment and making a net transfer profit of at least £10m.  That means that if we go up the extra £35m in TV money won’t even cover the losses the club are incurring under the current set up. Where is the money for team strengthening going to come from, could it be a case of having to cut the wage bill further?

 

 

No we havent

Oh yes we have

 

I don't know what figures you're basing the transfer "profit" on, as no fees seem to have been announced.

If no fees have been announced how do you know we haven’t made a £10m+ in the transfer market?

 

This financial year we’ve sold Martins for (a widely reported) £9m. Bassong (for a widely reported) £8m, and Duff for fee the press didn’t seem to care about. How much do you think Simpson, Best, Williamson and Routledge cost?

 

if martins went for 9mill then we made a million loss overall not to mention that we'd still have been oweing some of the original 10mill fee. also the bassong money wont be all up front.

[Guest malandro]

At what point does the state of the club’s finances become Ashley’s fault?

 

 

everyone will have their own view on this. the trick is to get the finances into a position that will allow us to invest in the playing side without just racking up bigger debts year. on year. like i've said previously i don't even mind running at a manageable loss if all is going well on the pitch.

What’s your view? When do you think the state the club is in stops being somebody elses fault?

[Liam Liam Liam O]

At what point does the state of the clubs finances become Ashleys fault?

 

 

everyone will have their own view on this. the trick is to get the finances into a position that will allow us to invest in the playing side without just racking up bigger debts year. on year. like i've said previously i don't even mind running at a manageable loss if all is going well on the pitch.

Whats your view? When do you think the state the club is in stops being somebody elses fault?

 

Who do you think is at fault for the situation at Portsmouth?

[Guest malandro]

The figures are a bit worrying. A weekly loss of £500k works out at annual loss of £26m, and that’s after receiving a £12m parachute payment and making a net transfer profit of at least £10m.  That means that if we go up the extra £35m in TV money won’t even cover the losses the club are incurring under the current set up. Where is the money for team strengthening going to come from, could it be a case of having to cut the wage bill further?

 

 

No we havent

Oh yes we have

 

I don't know what figures you're basing the transfer "profit" on, as no fees seem to have been announced.

If no fees have been announced how do you know we haven’t made a £10m+ in the transfer market?

 

This financial year we’ve sold Martins for (a widely reported) £9m. Bassong (for a widely reported) £8m, and Duff for fee the press didn’t seem to care about. How much do you think Simpson, Best, Williamson and Routledge cost?

 

if martins went for 9mill then we made a million loss overall not to mention that we'd still have been oweing some of the original 10mill fee. also the bassong money wont be all up front.

If you want to look at in terms of deferred payments then the sales of Milner, Given and N’Zogbia need to be factored in. 

[Guest malandro]

At what point does the state of the club’s finances become Ashley’s fault?

 

 

everyone will have their own view on this. the trick is to get the finances into a position that will allow us to invest in the playing side without just racking up bigger debts year. on year. like i've said previously i don't even mind running at a manageable loss if all is going well on the pitch.

What’s your view? When do you think the state the club is in stops being somebody elses fault?

 

Who do you think is at fault for the situation at Portsmouth?

What's that got to do with anything?

[Liam Liam Liam O]

At what point does the state of the clubs finances become Ashleys fault?

 

 

everyone will have their own view on this. the trick is to get the finances into a position that will allow us to invest in the playing side without just racking up bigger debts year. on year. like i've said previously i don't even mind running at a manageable loss if all is going well on the pitch.

Whats your view? When do you think the state the club is in stops being somebody elses fault?

 

Who do you think is at fault for the situation at Portsmouth?

What's that got to do with anything?

 

When do you think the state a club is in stops being the previous owners fault.  Portsmouth is a topical example.  Feel free to give your opinion.

[EthiGeordie]

    What ever you call him Mike Ashley is an ace Business man..

[Guest malandro]

At what point does the state of the club’s finances become Ashley’s fault?

 

 

everyone will have their own view on this. the trick is to get the finances into a position that will allow us to invest in the playing side without just racking up bigger debts year. on year. like i've said previously i don't even mind running at a manageable loss if all is going well on the pitch.

What’s your view? When do you think the state the club is in stops being somebody elses fault?

 

Who do you think is at fault for the situation at Portsmouth?

What's that got to do with anything?

 

When do you think the state a club is in stops being the previous owners fault.  Portsmouth is a topical example.  Feel free to give your opinion.

Newcastle aren’t Portsmouth, comparisons are pointless.

[Guest malandro]

     What ever you call him Mike Ashley is an ace Business man..

He’s certainly very good at lining his own pockets.

[Liam Liam Liam O]

At what point does the state of the clubs finances become Ashleys fault?

 

 

everyone will have their own view on this. the trick is to get the finances into a position that will allow us to invest in the playing side without just racking up bigger debts year. on year. like i've said previously i don't even mind running at a manageable loss if all is going well on the pitch.

Whats your view? When do you think the state the club is in stops being somebody elses fault?

 

Who do you think is at fault for the situation at Portsmouth?

What's that got to do with anything?

 

When do you think the state a club is in stops being the previous owners fault.  Portsmouth is a topical example.  Feel free to give your opinion.

Newcastle arent Portsmouth, comparisons are pointless.

 

 

Pathetic.

[Cronky]

At what point does the state of the clubs finances become Ashleys fault?

 

 

everyone will have their own view on this. the trick is to get the finances into a position that will allow us to invest in the playing side without just racking up bigger debts year. on year. like i've said previously i don't even mind running at a manageable loss if all is going well on the pitch.

Whats your view? When do you think the state the club is in stops being somebody elses fault?

 

It's a strange question, because it's not as though there's a point where 100% of the blame transfers entirely from one owner to another. There can only be a percentage split, which of course can never be defined precisely.

 

Obviously, the longer Ashley stays in charge, the less excuse he has for the problems remaining, and the more he can be held responsible.

[Liam Liam Liam O]

     What ever you call him Mike Ashley is an ace Business man..

Hes certainly very good at lining his own pockets.

 

How much do you anticipate he's lined them with from the football club overall?

[Guest malandro]

     What ever you call him Mike Ashley is an ace Business man..

He’s certainly very good at lining his own pockets.

 

How much do you anticipate he's lined them with from the football club overall?

Well to date it looks like he’s made a pigs ear of it, but that’s not to say he won’t fill his boots in the long run. The question is how is he is going to try and make a big fat profit out of NUFC after SJH made a mug of him. He could try and build a relevantly successful club PL that regularly competes in Europe and then sell up. Or he could just try and screw us over.

[madras]

At what point does the state of the club’s finances become Ashley’s fault?

 

 

everyone will have their own view on this. the trick is to get the finances into a position that will allow us to invest in the playing side without just racking up bigger debts year. on year. like i've said previously i don't even mind running at a manageable loss if all is going well on the pitch.

What’s your view? When do you think the state the club is in stops being somebody elses fault?

i haven't got a clue. it's like when to get rid of a manager, you just feel that it is time.

[Guest malandro]

At what point does the state of the club’s finances become Ashley’s fault?

 

 

everyone will have their own view on this. the trick is to get the finances into a position that will allow us to invest in the playing side without just racking up bigger debts year. on year. like i've said previously i don't even mind running at a manageable loss if all is going well on the pitch.

What’s your view? When do you think the state the club is in stops being somebody elses fault?

 

Who do you think is at fault for the situation at Portsmouth?

What's that got to do with anything?

 

When do you think the state a club is in stops being the previous owners fault.  Portsmouth is a topical example.  Feel free to give your opinion.

Newcastle aren’t Portsmouth, comparisons are pointless.

 

 

Pathetic.

Feel free to back that up with some substance.

[Guest malandro]

At what point does the state of the club’s finances become Ashley’s fault?

 

 

everyone will have their own view on this. the trick is to get the finances into a position that will allow us to invest in the playing side without just racking up bigger debts year. on year. like i've said previously i don't even mind running at a manageable loss if all is going well on the pitch.

What’s your view? When do you think the state the club is in stops being somebody elses fault?

i haven't got a clue. it's like when to get rid of a manager, you just feel that it is time.

Times the thing. There’s been quite a lot of it since Ashley took over, more than enough for some signs of a financial recovery. So why is the club still up to its neck in debt and apparently losing £26m a year despite drastic cost cutting?

[OzzieMandias]

You think Ashley should have sold more players? Bought fewer? What?

[midds]

     What ever you call him Mike Ashley is an ace Business man..

He’s certainly very good at lining his own pockets.

 

How much do you anticipate he's lined them with from the football club overall?

Well to date it looks like he’s made a pigs ear of it, but that’s not to say he won’t fill his boots in the long run. The question is how is he is going to try and make a big fat profit out of NUFC after SJH made a mug of him. He could try and build a relevantly successful club PL that regularly competes in Europe and then sell up. Or he could just try and screw us over.

 

And how would that work? If he's going to 'make a big fat profit out of NUFC' how is trying to screw us over going to help him achieve it?