nufc losing £500,000 a week

[J7]

Wheres that guy who used to add up all the finances under Shepherd? Is it not possible now as were off the market?

 

I just don't believe a word that comes out of their mouths. They always play in ridiculous whole numbers. "Buy a player for a million or so" "Mike puts £20million in" "Losing £500'000 a week". I just don't believe it. We might be losing a bit, but if they're going to tell us things, don't treat us as idiots.

[Guest Roger Kint]

If we do get promoted wages will go up as the players probably have a claus in their contracts to that effect.

 

Dont be daft, if there was no relegation clause how can there be a promotion clause?

 

As for this losing £500k a week. £26m over the year but we know that £12m parachute & £10m to £15m from Martiins/Bassong deals will go against that at the end from what was said when Ashley put money in not long ago. Yes the club will have losses but like has been said it doesnt really add up to much other than the usual 'insider' bullshitting

[timnufc22]

He's got nothing to complain about, the fact they have the cheek to put out these 'poor mike' stories just show what total piss-taking wankers they are.

[ToonTastic]

We'll find out the truth when the reports are released. Just a shame we have to wait for those for this season.

[summerof69]

“Newcastle United couldn’t survive at the moment without Mike’s money, it’s as simple as that. If Mike and the banks weren’t willing to cover the cost of relegation Newcastle may well be in a Portsmouth situation. It is costing Mike £500,000-a-week this season to keep Newcastle running without making further cutbacks, yet some people are saying the club should be able to wipe its own mouth, that it should be able to run by itself with the income coming in.

 

It's mostly his fault that we're in this situation, you c***s.

 

Don't get me wrong, i blame Mike Ashley for us being in the CCC but i'm not sure the financial side i his fault.

 

He's the one that didnt have relegation clauses in the contracts of players we signed under him.

 

True, but he did pay off however many million when he bought the club (that is if he was tellin' the truth about that)

[ToonTastic]

If we do get promoted wages will go up as the players probably have a claus in their contracts to that effect.

 

Dont be daft, if there was no relegation clause how can there be a promotion clause?

 

As for this losing £500k a week. £26m over the year but we know that £12m parachute & £10m to £15m from Martiins/Bassong deals will go against that at the end from what was said when Ashley put money in not long ago. Yes the club will have losses but like has been said it doesnt really add up to much other than the usual 'insider' bullshitting

 

Don't forget the stupid chairman pays for all our transfers in one go but accepts sales on the tick so we've probably not seen even a quarter of the money for the sales in the summer.

[Guest Roger Kint]

Well we sold about £25m in the summer so was basing it on around 50% to be paid this season depending on what was paid up front, if anything

[timnufc22]

“Newcastle United couldn’t survive at the moment without Mike’s money, it’s as simple as that. If Mike and the banks weren’t willing to cover the cost of relegation Newcastle may well be in a Portsmouth situation. It is costing Mike £500,000-a-week this season to keep Newcastle running without making further cutbacks, yet some people are saying the club should be able to wipe its own mouth, that it should be able to run by itself with the income coming in.

 

It's mostly his fault that we're in this situation, you c***s.

 

Don't get me wrong, i blame Mike Ashley for us being in the CCC but i'm not sure the financial side i his fault.

 

He's the one that didnt have relegation clauses in the contracts of players we signed under him.

 

True, but he did pay off however many million when he bought the club (that is if he was tellin' the truth about that)

 

Only after he didnt bother to check the books - had he seen the debt he might well have not bothered, mike ashley did not come along and say 'ahhh I'll save good old nufc', he is stuck with us after f*cking up and we are stuck with him. In terms of 'stupid player salaries' that he may complain is killing the club, he's the one who was in charge when a lot of these contracts were handed out. And one minute he said the whole debt was cleared then months later he says 'theres still a lot of debt'. And in which way has he paid it off, a loan? He might well be wanting that back.

[quayside]

In 2008 we had income of £100 million, wages of £70 million and other costs of £50 million. All of which added up to a loss of £20 million.

 

Supposing now our income is £50 million, our wages are £40 million it would all depend on what our other costs are. These other costs include the running costs of SJP, amortisation of players transfer fees, profits/losses on selling players etc. If we've cut these costs  by 40% (to £30 million) the club is still losing £20 million a year. Sounds plausible imo.

 

But the key thing is what the cash requirements are, the profit or loss is irrelevant. And in any case whatever has happened will be fully revealed when the accounts are published. From what I've seen so far one of the few things the club don't lie about is the finances.

[summerof69]

“Newcastle United couldn’t survive at the moment without Mike’s money, it’s as simple as that. If Mike and the banks weren’t willing to cover the cost of relegation Newcastle may well be in a Portsmouth situation. It is costing Mike £500,000-a-week this season to keep Newcastle running without making further cutbacks, yet some people are saying the club should be able to wipe its own mouth, that it should be able to run by itself with the income coming in.

 

It's mostly his fault that we're in this situation, you c***s.

, he paid it off to stop us paying interest to the banks i believe.

Don't get me wrong, i blame Mike Ashley for us being in the CCC but i'm not sure the financial side i his fault.

 

He's the one that didnt have relegation clauses in the contracts of players we signed under him.

 

True, but he did pay off however many million when he bought the club (that is if he was tellin' the truth about that)

 

Only after he didnt bother to check the books - had he seen the debt he might well have not bothered, mike ashley did not come along and say 'ahhh I'll save good old nufc', he is stuck with us after f*cking up and we are stuck with him. In terms of 'stupid player salaries' that he may complain is killing the club, he's the one who was in charge when a lot of these contracts were handed out. And one minute he said the whole debt was cleared then months later he says 'theres still a lot of debt'. And in which way has he paid it off, a loan? He might well be wanting that back.

 

 

I do believe he is wanting it back

[ToonTastic]

Well we sold about £25m in the summer so was basing it on around 50% to be paid this season depending on what was paid up front, if anything

 

Ah right fair enough

[timnufc22]

Chris Mort in May 2008...

"This club had £100million-worth of debt which has now been cleared"

 

Months later, Mike Ashley...

"I then poured another £110 million into the club not to pay off the debt but just to reduce it. The club is still in debt."

 

Can I ask that with money being so tight and Mike going through a difficult time, why (if true) is Dennis Wise still on the payroll?

 

Again though, the main point is even if these reports are true, its the pathetic 'poor mike' tone that his people are coming out with, as if we should be giving him a pat on the pat for paying the bills of the club he owns and for the results of his disgraceful behaviour. Or because he didnt put us in administartion - "thanks for bieng just a total c*nt, and not choosing to be an even more of a total c*nt, thanks so much."

[Guest Roger Kint]

In 2008 we had income of £100 million, wages of £70 million and other costs of £50 million. All of which added up to a loss of £20 million.

 

Supposing now our income is £50 million, our wages are £40 million it would all depend on what our other costs are. These other costs include the running costs of SJP, amortisation of players transfer fees, profits/losses on selling players etc. If we've cut these costs  by 40% (to £30 million) the club is still losing £20 million a year. Sounds plausible imo.

 

But the key thing is what the cash requirements are, the profit or loss is irrelevant. And in any case whatever has happened will be fully revealed when the accounts are published. From what I've seen so far one of the few things the club don't lie about is the finances.

 

Based on that article it seems they are suggesting he has put in his usual £20m plus a second £20m in December which would just be to cover the costs until the parachute/transfer fees are recieved in the summer making the whole thing pointless reporting tbh. Like you say we know he puts money in and that it will make a loss on the next few years accounts as this must be shown in the accounts.

[Stu]

Pointless article and some of the comments in this thread are knee-jerkingly awful, please read Quayside's balanced comments for a realistic take on the situaiton.

[steve_69]

Ashley's a cunt who is, for a large part, responsible for our current predicament. However, I do believe that his financial strategy for the club ie. making it as close to self-sufficient as possible is absolutely spot-on.

 

I don't think any of us will be able to forgive and forget the fucking shambolic way in which Ashley orchestrated our downfall but I don't think anyone can deny that if we return to the Premier League we will be in a much better position than when we left it. Ok, we might spend a couple of season struggling in the bottom half of the table but we'd been doing that for a while anyway.

 

It's far too easy to bury your head in the sand as a fan and ignore the club's spiralling debt but it doesn't take a genius to work out that we were seriously in the shit. Relegation hasn't helped that but it has enabled us all to reign in our expectations and for the club to go someway to sorting itself out.

 

The Premier League has had a reality check in the past couple of seasons and I think the days of gung-ho spending are gone (except for the likes of Man City). We might even see some clubs go out of existence as a direct result of spending beyond their means. Thankfully it looks like we won't be one of them.

[J7]

Has our turnover really halved. I would have thought we would have covered most of the reduced turnover through player sales and the new sponsorship deals. Not to mention a halving of the wagebill.

[Wilky]

Even if our income is half that of last year; i.e. approximately £50m and our wage bill is c. £40m, also take into account the £20-£30m profit made on the fire sale at the beginning of the season - how have we lost money this year? The figures don't add up IMO and you can't believe a word that comes out from any 'club source'

[Guest Roger Kint]

Even if our income is half that of last year; i.e. approximately £50m and our wage bill is c. £40m, also take into account the £20-£30m profit made on the fire sale at the beginning of the season - how have we lost money this year? The figures don't add up IMO and you can't believe a word that comes out from any 'club source'

 

Because football clubs have other costs than just wages?

[ikri]

Going off some of the estimated wages:

 

Butt - 40k

Colo - 80k

Smith - 60k

Barton - 65k

Jonas - 50k

Nolan - 40k

Shola - 25k

Enrique - 50k

R Taylor - 25k

 

No idea if we're paying all or part of Xisco's wages whilst he's out on loan, but he's apparently on 40k.

 

That's £435,000 per week for those players alone (assuming that we're not paying any of Xisco's wages at the moment), not including any bonus payments they're due.

 

The wages of those players alone nearly reaches the £500,000 weekly mark and whilst most of them have performed well this season it's extremely hard to justify those wages in this league (most of them weren't exactly justifying their wages in the Premiership either).

[OzzieMandias]

Surely everyone knows that Ashley is really trousering £7 million a month!

[Teasy]

While I'm not one of the few who believed we were making a profit, I also think this info is being used to make things look worse then they are.  What they don't mention is that nearly all clubs lose money each month throughout the season (usually being supported by a bank overdraft) as they have to wait for a large chunk of their income to come in at the end of the season (in our case £12m in parachute payments and a few million in TV money).  I still believe we'll make a reasonably large loss in our current state in this league of course.

[Benwell Lad]

Pointless article and some of the comments in this thread are knee-jerkingly awful, please read Quayside's balanced comments for a realistic take on the situaiton.

 

Totally agree but not much chance of that on here mate.

It doesn't take much to get the knees jerking especially where the rotund southern one is concerned.

[Wilky]

Because football clubs have other costs than just wages?

 

Agreed, but given I've identified c.£80m of revenue are you suggesting other costs amount to £30m?

 

For us to be losing half a million a week other costs would have to amount to nearer £50m? Does that sound plausible?

 

We cannot make an economic appraisal of our finances based on what is probably an "exercise in public relations".

[gray]

If MA got us relegated, what would Shepherd (Allardyce as manager) have done?

 

I still accept Ashley takes blame for us going down, but I don't accept if he wasn't here we'd be fine. We might have came down harder, who can say really.

[bealios]

The finances in that article are roughly accurate. Ashley is keeping the club afloat. As quayside says, a lot of the trouble football clubs get themself into is through cashflow, and not the P&L account. The £20m injection is to make sure there is enough money in the bank to pay the players their massive wages.

 

When the next accounts come out, I'm pretty sure that the "going concern" statement will only be given if Ashley gives further guarantees/assurances to finance the club for the next accounting period.