Club statement

[Happy Face]

I understand that people think the statement is 'negative'. But where does it day we are not going to sign any further players?  I think that ashley and co have realised that it is better to under promise and over deliver rathe than over promise (as past boards have), raise expectations and then fall flat on our faces ( ie become a laughing stock). Get past the initial tone of statement and, as stated before, I really think it is a message more to agents and the media that we will not pay stupid prices for players.

 

btw, The above theory is based on the last transfer window so we will see if this theory is correct in a couple of months time. At this stage I say very smart statement. 

 

I've advocated not buying anyone in summer.  It's not about the disappointment of not spending money as far as I'm concerned.  I never expected us to spend ANYTHING given the experience of the last three years.  Anyone who did was very naive.

 

But that statement is an utter shambles from start to finish with no positives whatsoever. You can tell the media who to talk to when they contact the club.  you can tell agents we aren't buying when they contact the club too.  This is another in a long line of retarded statements that make the whole club look retarded.

 

Did you say this before January?

 

Yes.

 

http://nufc-ashlies.blogspot.com/2010/01/following-on-from-this-recent-post.html

 

Routledge, Simpson, Williamson...

 

Let's be honest, it wasn't out of the realms of possibility that we'd spend a couple of million this summer, especially after we did in January.  It's a bit much to call people naive for thinking that we might have.

 

There seems to be a lot of people in this thread saying the news from the statement is not anything we didn't already know.

 

Maybe, we're all especially cynical.

 

You said you didn't expect to spend any money in the summer and anyone who did was naive, due to what happened in the last three years.  

 

We SPENT money in January, why is it unreasonable to think we'd spend a little amount in the summer.  If you didn't think we'd spend money in  January then fair enough, but you were wrong and now you're saying others are naive despite the fact that we SPENT money in the last window?

 

I'm not defending Ashley before anyone jumps on that, I just resent people calling our fans naive, especially when its not true.

 

Honestly, the pedantry around here is incredible.

 

Over 3 years at the club he's £20m in profit on transfers.  He spent £3m in January, I was surprised (and delighted) to be proved completely wrong, he seemed to have learned investment was required to guarantee Premier League football. In no way did that suggest to me it was the start of bigger things to come though or that he'd go the next step in the summer.  I've said all along, Ashley is following the WBA model.  Yo-Yo.

 

I never called our fans naive.  Most people I speak to never thought he'd be spending much.

 

So basically, to sum up,

 

- You said we wouldn't spend anything this summer because of what happened in the last three years.

 

- These three years include January 2010, when we spent money on players (also the most recent window).

 

- You think anyone who thinks we'd spend money this summer is naive because of the last three years.

 

No pedantry, just showing that it's a bit much to call our fans naive (as a lot expected at least some money in summer, especially after January).

 

Spot on.

 

EDIT:  Except I never called our fans naive.

[Parky]

Do any other clubs 'break even' and run with no debt? No, because it's impossible, in all walks of life, to survive comfortably without some form of manageable debt. Why Ashley can't get this into his head I don't know.

 

Cause he likes to hide money under the bed.

[Rocker]

Ah, so this is what negativity feels like, I'd almost forgot.

[madras]

Do any other clubs 'break even' and run with no debt? No, because it's impossible, in all walks of life, to survive comfortably without some form of manageable debt. Why Ashley can't get this into his head I don't know.

which is true to a point. it's also true that you can't just keep on building debt.

 

also many would say our level of debt is unmanageable.

[Ashley17]

I'm expecting all the usual rubbish now, such as Barton "being like a new signing" and that Leon Best has found his feet. I think we'll spend in January if we need to, I think that's the new game plan. Players with 6 months on their contract are Ashley's wet dream, he can pick them up at a bargain price and look shrewd. We might get the odd free transfer in this summer but this is horribly risky, I'm just glad there's shite like Wigan and Bolton in the Premiership at the minute.

[Shak]

I'm expecting all the usual rubbish now, such as Barton "being like a new signing" and that Leon Best has found his feet. I think we'll spend in January if we need to, I think that's the new game plan. Players with 6 months on their contract are Ashley's wet dream, he can pick them up at a bargain price and look shrewd. We might get the odd free transfer in this summer but this is horribly risky, I'm just glad there's shite like Wigan and Bolton in the Premiership at the minute.

 

Would almost be worth it to hear that.

[Mick]

which is true to a point. it's also true that you can't just keep on building debt.

 

also many would say our level of debt is unmanageable.

 

The current debt is unmanageable but the only way to control it will be by remaining in the Premiership.  The statement released by the club isn't going to persuade anybody to buy a season ticket if they were in two minds before its release.  Very few are going to put money into the club if they think its going straight into Ashley’s bank account.  He's put money in and will want it back but that shouldn't be done at the expense of team strengthening.  It looks like they haven’t learned any lessons from relegation and they are quite prepared to once again take a risk with our league status, morons.

[LesPaul]

Maybe this is just to make it look like we won;t be held to ransome? You know, we're not prepared to buy big so sell cheapor we won't buy at all kinda thing

[madras]

which is true to a point. it's also true that you can't just keep on building debt.

 

also many would say our level of debt is unmanageable.

 

The current debt is unmanageable but the only way to control it will be by remaining in the Premiership.  The statement released by the club isn't going to persuade anybody to buy a season ticket if they were in two minds before its release.  Very few are going to put money into the club if they think its going straight into Ashley’s bank account.  He's put money in and will want it back but that shouldn't be done at the expense of team strengthening.  It looks like they haven’t learned any lessons from relegation and they are quite prepared to once again take a risk with our league status, morons.

catch 22. the current debt is umanageable but we'd need to increase it to try to control it.

[Rich]

All this hoo-ha (read all the thread, for some reason) and has anybody asked/explained just exactly what "new capital" actually means?

 

From my understanding (absolutely minimal when it comes to football finances) does it not simply mean he won't be putting any more of his own cash in to buy players? (Seems likely and fairly reasonable to me, although obviously not ideal.)

 

Or, does it mean that absolutely no money already within the club or coming into the club in the immediate future through season ticket sales, merchandise sales and Premier League money (TV) will be spent? Not accounting for this sell-to-buy position that many seem to be assuming. (Seems incredibly unlikely.)

 

Whether it's been worded badly in the statement or some have misunderstood it (or got it bang on) I'm a bit lost if the definition/meaning of the term isn't fully realised.

[WarrenBartonCentrePartin]

apologies if posted, but here is Luke Edwards' article in the Journal

 

IF promotion back to the Premier League brought widespread excitement and optimism, they will now be replaced by doubt and fear.

 

Newcastle United are back where they belong in the top flight, but how on earth are they going to stay there?

 

An official statement released by the club last night contained much sense about balancing the books, producing their own players and generating sustainable success.

 

But there was also plenty to spread panic and enough to spark outrage among supporters who should still be basking in the after glow of promotion.

 

The timing of the statement – which implies Newcastle intend to consolidate their place in the top flight without spending any money on new players for a squad, the core of which was not good enough to stay in the Premier League 12 months ago – was significant, for it was released on the same night as the climax of this year’s Premier League title race.

 

As a government spin doctor might put it, bad news can always be buried on a busy news day. But, for many, this statement was much worse than that.

 

For some it will be an outage, for others just a depressing reconfirmation of Mike Ashley’s true colours.

 

He seems to have only ever put his own money in when he needed to protect his investment. He appears to be not a benefactor, but a cold, hard businessman who, like his sport shops, will cut costs wherever he can.

 

Having offered a crutch after the crippling effects of relegation, he has whipped it away again as soon as the worst was over.

 

Newcastle owe their owner money and he wants it back.

 

Mr Ashley will not be spending any more of his own cash to support the club as a business, which is both his prerogative and his right, but where is the extra money generated by promotion going? Promotion is estimated to be worth an additional £50m a year to a football club, but that money will be used to clear debts – the bank’s and his – while Newcastle United as a football concern is left to fend for itself.

 

Could that have been done less ruthlessly, some going towards consolidating the debt and the rest on transfers?

 

There is one major, glaring, inexplicable flaw in the five-year business plan, a flaw that sends a shiver down the spine, despite all the warm words about the Geordie nation and spiritual torches.

 

Everything is supposedly geared up to ensure Newcastle United break even before the start of the 2015/16 campaign, yet they have absolutely no chance of doing so if they do not stay in the top flight until that point. Mr Ashley likes a gamble, but this is a massive one. Clearly, he believes the squad is good enough to remain in the top flight without having to be significantly strengthened.

 

He will point to the examples of teams like Wolverhampton Wanderers and Birmingham City, who held their own during the season that’s just closed.

 

Yet he seems to ignore the fact that these clubs spent around £20m last Summer in order to ensure their squads were strong enough to compete at that level.

 

Newcastle United have an excellent Championship team, but that does not mean they will have anything like a good enough Premier League one. They have shown remarkable team spirit and commendable will power to return to the top flight at the first time of asking, but camaraderie and togetherness only gets you so far.

 

What good will excellent Championship players be against Premier League ones?

 

During all the promotion celebrations, there was an eye on the future. In every player interview there was a mention of new signings. The right sort of new signings, but new signings nonetheless.

 

They clearly expected the squad to be strengthened. Now they will be left disappointed like everyone else.

 

And then there is Chris Hughton, the manager who dug Mr Ashley and Newcastle out of a hole of their own making, the manager who has always toed the party line and spoken eloquently about the support of the board and, more recently, confidently told of the backing he would continue to receive.

 

He has talked about the need for three or four new faces and had begun to draw up a list of potential targets, but that list was pointless.

 

He will be shopping in the bargain basement, among the free agents and loan signings, trying to make the best of a situation nobody above him will ever talk about again.

 

This was not an official club statement, it was a public relations disaster and he has been left to deal with the fallout.

 

http://bit.ly/9062Za

 

[Unbelievable]

I was just thinking, does this also spell the end of the 20 million of his own money Mike promised to put in the club on a yearly basis?

[Guest Stephen927]

I was just thinking, does this also spell the end of the 20 million of his own money Mike promised to put in the club on a yearly basis?

 

He still does. It keeps the club running.

[madras]

I was just thinking, does this also spell the end of the 20 million of his own money Mike promised to put in the club on a yearly basis?

he'd say he's already put in a few years worth.

[Nobody]

Am I reading this wrong?

The club also wishes it to be known; in an effort to stop the untrue rumours and stories that emanate from outside Newcastle United that:

 

• The Board have set a five year plan to promote core values of credibility, viability and sustainability both on and off the field of play at Newcastle United.

 

• The Board will concentrate on Newcastle United's stability by promoting from within where possible.

 

So, the rumours that we want to promote from within when possible is untrue, and it's something they want to stop, right?

It's just, I wonder where those rumours might come from?

 

The Board and supporters are aware that Newcastle United currently has a footballing academy brimming with talent, skill and dedication. As part of Newcastle United's quest for a team that truly represents the values of the Geordie nation the club will look to promote, where it can, from within and for the academy to become a leading light as one of the best if not the best in the UK.

 

Might it be from there, I wonder?

[The Prophet]

You have to read it carefully but:

 

(b) Players

 

The first team squad that won the Championship this year will form the basis of the team for next season in the Premier League. There is no plan for new capital outlay on players.

 

The only individuals who will talk about player issues will be those connected with the football administration of the Club i.e. the Manager/Assistant Manager by way of either direct interview or through prepared statements via Newcastle United Football Club's Media Officer.

 

There will be no comment from the Board regarding the purchase of players.

 

There will be no comment from the Board regarding the sale of players.

 

There will be no comment from the Board regarding ongoing contract talks with players presently at Newcastle United Football Club or with those that the club may enter into negotiation with.

 

There will be no comment from the Board regarding current pay structures at Newcastle United.

 

There will be no comment from the Board regarding players at other clubs in respect of their "interest" at playing for Newcastle United.

 

There will be no comment from the Board to players' agents regarding any of the above whether those agents are acting for their clients in a buying or selling capacity.

 

Player Agents:

 

(a) Buying Agents:

 

The Board will not make any comment to the media regarding any players that they are seeking to purchase. The Board will deal with agents on their fixed terms of business and part of those terms will include clauses relating to privacy.

 

(b) Selling Agents:

 

The Board will not comment to the media regarding any players being sold by Newcastle United and the Board will deal with agents on the usual terms of business including explicit terms of privacy.

 

They're not saying they aren't going to invest, they're essentially saying there isn't going to be any massive changes to the squad i.e two or three new players.

[Mick]

I was just thinking, does this also spell the end of the 20 million of his own money Mike promised to put in the club on a yearly basis?

 

£20 million a year only adds up to £60 million, he's already put in much more than that.

[Rich]

Is "new capital" different to "working capital"?

 

Is the money that the club will receive naturally through the sources I mentioned (ST sales, merch, TV money) "new" or "working" capital?

 

Quite important to know, for me, as it will better explain the club's position. They are clearly incapable of explaining properly themselves (again).

[Unbelievable]

I was just thinking, does this also spell the end of the 20 million of his own money Mike promised to put in the club on a yearly basis?

 

£20 million a year only adds up to £60 million, he's already put in much more than that.

 

I know, I know, but I mean when they talk about breaking even, I presume this means excluding any 20 million a year investments by Ashley, or does it?

[Guest ObiChrisKenobi]

Pretty sure all the reports in the papers today have been fueled by reading people's reactions in this thread!

[Guest neesy111]

my take on the situation:

 

http://manontheterraces.blogspot.com

[The Prophet]

Is "new capital" different to "working capital"?

 

Is the money that the club will receive naturally through the sources I mentioned (ST sales, merch, TV money) "new" or "working" capital?

 

Quite important to know, for me, as it will better explain the club's position. They are clearly incapable of explaining properly themselves (again).

 

I only have a basic knowledge of this so someone may well want to correct me, but as far as I know 'working capital investment' is your current assets (cash or items amounting to cash) minus your current liabilities (short term losses).

[WarrenBartonCentrePartin]

my take on the situation:

 

http://manontheterraces.blogspot.com

  your last blog before that was for the Ipswich away game, 28th Sept.

[Foluwashola]

my take on the situation:

 

http://manontheterraces.blogspot.com

  your last blog before that was for the Ipswich away game, 28th Sept.

 

Also, one of the more recent entries was discussing the possibility of bringing Reyes in. Wonder if we'll be going for him this summer, we'll be able to offer.........oh wait 

[Incognito]

Surely the key word in the statement is "basis".