NUFC 2009 Accounts

[UV]

The highest paid director (presumably Llambias) is on £155k with £16k going into his pension, small fry compared to previous board excesses.

 

Seriously? I'm shocked at that. Wise was on £1m/year was he not?

 

Wise was never a director. There were rumours about what he was earning but no one knows for sure.   

 

He was called one. Was Executive Director (Football) just a vanity title? Are we sure Llambias is a director of Newcastle United Limited then, I can't believe he's only on £155k a year.

[quayside]

The highest paid director (presumably Llambias) is on £155k with £16k going into his pension, small fry compared to previous board excesses.

 

Seriously? I'm shocked at that. Wise was on £1m/year was he not?

 

Wise was never a director. There were rumours about what he was earning but no one knows for sure.   

 

He was called one. Was Executive Director (Football) just a vanity title? Are we sure Llambias is a director of Newcastle United Limited then, I can't believe he's only on £155k a year.

 

The directors who served during the year are named in the accounts as Llambias, Williamson and Charnley. Williamson resigned in early June and was replaced by Charnley. The 3 of them earned a total of £331k with £26k going into their pensions.

[Minhosa]

The highest paid director (presumably Llambias) is on £155k with £16k going into his pension, small fry compared to previous board excesses.

 

Seriously? I'm shocked at that. Wise was on £1m/year was he not?

 

Wise was never a director. There were rumours about what he was earning but no one knows for sure.   

 

He was called one. Was Executive Director (Football) just a vanity title? Are we sure Llambias is a director of Newcastle United Limited then, I can't believe he's only on £155k a year.

 

The directors who served during the year are named in the accounts as Llambias, Williamson and Charnley. Williamson resigned in early June and was replaced by Charnley. The 3 of them earned a total of £331k with £26k going into their pensions.

 

Wonder if any of them are on the payroll of Sports Direct or one of MA's other companies?

[quayside]

The highest paid director (presumably Llambias) is on £155k with £16k going into his pension, small fry compared to previous board excesses.

 

Seriously? I'm shocked at that. Wise was on £1m/year was he not?

 

Wise was never a director. There were rumours about what he was earning but no one knows for sure.   

 

He was called one. Was Executive Director (Football) just a vanity title? Are we sure Llambias is a director of Newcastle United Limited then, I can't believe he's only on £155k a year.

 

The directors who served during the year are named in the accounts as Llambias, Williamson and Charnley. Williamson resigned in early June and was replaced by Charnley. The 3 of them earned a total of £331k with £26k going into their pensions.

 

Wonder if any of them are on the payroll of Sports Direct or one of MA's other companies?

 

Related party transactions need to be disclosed. Directors and shareholders are related parties. So I'm thinking that a director of the club (which is controlled by Ashley) who is earning from another company (that is controlled by Ashley) is a related party transaction and would need to be disclosed.

[JCONA]

The highest paid director (presumably Llambias) is on £155k with £16k going into his pension, small fry compared to previous board excesses.

 

Seriously? I'm shocked at that. Wise was on £1m/year was he not?

 

Wise was never a director. There were rumours about what he was earning but no one knows for sure.   

 

thats true, but he did leave a mangerial position where things were going fairly well for him.

 

managers earn a canny bit, so he must of been offered a fair amount to leave leeds

[Mick]

 

What Ashley found to his surprise was that most of the debt in the 2006 balance sheet was payable on demand if there was a change of owner. When he bought the club the latest accounts (2006) showed that the club was still solvent. Ashley didn't know, because he rather stupidly didn't do due diligence, that in May 2007 the club was in the process of losing £30 million for the year, and he had to fund it probably because no one else would. With the year end being in June the audited accounts were some months away from being prepared....

 

 

Ashley was also surprised that we'd spent our future income from Northern Rock and Adidas when we bought Owen even though it was still showing as future income in the accounts.  We still owe just over £1.5 million for unpaid PAYE/NIC which goes back to the previous owners although we're disputing it.

[Mowen]

What's this player amoritisation shit then? Just some accounting trick?

[jdckelly]

What's this player amoritisation shit then? Just some accounting trick?

its what the player is put down as being worth based on what was paid for him it decreases over the length of his contract.

for example colo was signed for 10m so his paper worth in accounts is 10m and will decrease by 2m a season over the 5 years of his contract so if we sell him for lets say 7m next year we make a paper profit of 1m.

players that are homegrown have no set value on books so to speak so if taylor was sold for 7m thats viewed as 7m profit.

it is basically an accounting trick but its as good a method as any to judge what the playing assets are worth

[madras]

What's this player amoritisation s*** then? Just some accounting trick?

you waited till nearly half 12 ?

[Mowen]

What's this player amoritisation s*** then? Just some accounting trick?

you waited till nearly half 12 ?

 

Patience is a virtue. One bite.

[quayside]

I wonder if MA would consider trying to float us again in order to get back some of his money?

 

He might want to. But I would think his track record of floating Sports Direct at a gross over value and treating his shaeholders with contempt (shocking PR too) would make it a difficult sell to institutional shareholders. Plus football might not be the flavour of the month as a sector, the high profile financial issues have given it a bit of a "high risk, damaged goods" vibe.

[Colos Short and Curlies]

I wonder if MA would consider trying to float us again in order to get back some of his money?

 

He might want to. But I would think his track record of floating Sports Direct at a gross over value and treating his shaeholders with contempt (shocking PR too) would make it a difficult sell to institutional shareholders. Plus football might not be the flavour of the month as a sector, the high profile financial issues have given it a bit of a "high risk, damaged goods" vibe.

 

All true, but its possibly the best track for him to take if he wants his money back, even with a reduced floatation price he could get an immediate payout and then (assuming he retains a shareholding) dividend city to regain the remainder of the investment.

[Happy Face]

THE state of Newcastle United’s finances can today be revealed.

 

The club has published its latest set of accounts, which covers the period leading up to its relegation to the Championship.

 

Details of major developments during the course of the Magpies’ successful promotion campaign are also given in the papers, which reveal:

 

The legal case resulting from the departure of ex-boss Kevin Keegan cost the club more than £5.3m

 

United’s wage bill soared to more than £71.1m by the end of its time in the Premier League

 

The Toon now owes owner Mike Ashley £111m

 

The sports billionaire has ploughed an extra £25.5m into the club’s coffers

 

Player costs worth more than £21m have been saved since relegation.

 

United’s accounts were due to be filed at Companies House at the end of March but they were posted late by the club.

 

They have now been made available and tell of the impact of dropping from English football’s top flight.

 

The director’s report, signed by MD Derek Llambias, says: “A disappointing 2008/09 season for Newcastle United culminated in an 18th place finish in the FA Premier League and relegation to the Football League Championship for the 2009/10 season.

 

“The financial effects of relegation will be most evident in the financial statements for the year ending June 30 2010 but it has also impacted on the results for the year under review.”

 

It goes on to reveal the club’s turnover fell to £86.1m from £99.4m the year before.

 

Despite the reduced income, the wage bill rose to £71.1m from £70m in 2008/9 and that meant salary costs ate up a staggering 82.6% of all the cash coming into the club.

 

Later in the accounts, it is revealed that since relegation wage bill savings have been made, which will include the departure of high-earning players like Michael Owen, Mark Viduka, Obafemi Martins and Damien Duff.

 

The papers state: “The playing registrations of certain players have been disposed of subsequent to the balance sheet date for a total consideration, net of associated costs, of £21,103,000.”

 

It adds: “Subsequent to the balance sheet date, the playing registrations of certain players have been acquired for total consideration, including associated costs of £3,221,000.” That will take account of the signing of players including Mike Williamson, Fabrice Pancrate and Danny Simpson.

 

The level of Mike Ashley’s investment in the Toon is also revealed.

 

He is now owed £111m by the club, which must be paid back to him immediately in the event of a change in ownership.

 

The accounts add: “Subsequent to the year end, the ultimate controlling party, Mr MJW Ashley, has advanced additional funding of £25.5m.”

 

Under a heading of “Change of Team Management,” the papers state: “In September 2008 Kevin Keegan left his position as first team manager and subsequent to the year end, in October 2009, a Premier League Manager’s Tribunal upheld a claim of constructive dismissal brought by Mr Keegan in relation to his departure.

 

“Costs relating to this matter, totaling £5,342,000 (including staff costs of £2,256,000) have been charged in full in the year to June 30 2009.

 

“In January 2008, Sam Allardyce’s contract was terminated. Costs relating to this and the accompanying changes in backroom staff, totalling £4,597,000, were recognised in the prior year.”

 

It is also revealed £1,357,000 was paid to the club’s solicitors Freshfields Bruckhaus Dennger for the services of former chairman Chris Mort, who was at St James’ between June 2007-June 2008.

 

http://www.chroniclelive.co.uk/north-east-...72703-26357235/

[Stu]

[Teasy]

Just ordered a set, just to save me some time, what page is the proof of him making £7m a month on?

 

It's not in there at all 

But you shouldn't believe what Ernst and Young say like, they're part of the great deception together with Ashley and all that.....

 

Well they did manage to hide all that extra debt for Shepherd that Mike only found after he bought the club.

 

 

Have we always included manager's pay in the wage bill or is that new? Is the directors pay included in the £73m?

 

That's a pretty big drop in revenue, a lot lower than Llambias was saying only 4 months before the end of that accounting period when he was saying turnover was £100m. I guess some of it could be put down to the boycott, but pretty worrying nonetheless. Ashley's probably lost us more in revenue than he's "put in".

 

Part of the drop in revenue is due to outsourced catering.  Instead of recieving all the money (and costs) from catering we now just recieve a fee.

 

Oh and at the last sentence.

[Fenham Mag]

Anyone want to take a guess at what the percentage of turnover is taking by wages now?

[Happy Face]

Anyone want to take a guess at what the percentage of turnover is taking by wages now?

 

£40m out of £50m = 80%

[Guest malandro]

Anyone want to take a guess at what the percentage of turnover is taking by wages now?

 

£40m out of £50m = 80%

They were the figures being bandied around earlier in the season, but I’m not sure they add up.

 

Turnover was £86m. Loss in TV money takes it to about £50m, but we received about £14m in parachute payments and this year’s transfer dealings brought in a similar amount. Also wages were £71m but the accounts say they have only been reduced by £21m.

 

[James]

Anyone want to take a guess at what the percentage of turnover is taking by wages now?

 

£40m out of £50m = 80%

 

Say that was the case, am I right in thinking that there is a big boost in PL income for all clubs next year? Entering the PL with a much more room relative to turnover could help us out a lot compared to other struggling clubs

[madras]

Anyone want to take a guess at what the percentage of turnover is taking by wages now?

 

£40m out of £50m = 80%

 

Say that was the case, am I right in thinking that there is a big boost in PL income for all clubs next year? Entering the PL with a much more room relative to turnover could help us out a lot compared to other struggling clubs

depends when ashley wants his cash back.

[Mick]

This years wages £40 million, income £48 million.

[Guest malandro]

This years wages £40 million, income £48 million.

Where you getting these figures from Mick?

[Teasy]

Anyone want to take a guess at what the percentage of turnover is taking by wages now?

 

£40m out of £50m = 80%

They were the figures being bandied around earlier in the season, but I’m not sure they add up.

 

Turnover was £86m. Loss in TV money takes it to about £50m, but we received about £14m in parachute payments and this year’s transfer dealings brought in a similar amount. Also wages were £71m but the accounts say they have only been reduced by £21m.

 

 

I'm not sure the accounts say that at all, the £21m is what we brought in from player sales AFAICS.

[Fenham Mag]

http://extras.timesonline.co.uk/pdfs/moneygame.pdf

 

Mackems look in a bit of trouble like.

[Guest malandro]

Anyone want to take a guess at what the percentage of turnover is taking by wages now?

 

£40m out of £50m = 80%

They were the figures being bandied around earlier in the season, but I’m not sure they add up.

 

Turnover was £86m. Loss in TV money takes it to about £50m, but we received about £14m in parachute payments and this year’s transfer dealings brought in a similar amount. Also wages were £71m but the accounts say they have only been reduced by £21m.

 

 

I'm not sure the accounts say that at all, the £21m is what we brought in from player sales AFAICS.

oops. You're right that figure is for players sales in 08/09. I’m still intrigued to know where this £40m to £50m ratio has come from.