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NUFC finances for 2010/11 announced


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A figure that doesn't tend to get enough credit is Freddie Fletcher, the Chief Exec during the SJH era and the first half of the Shepherd chairmanship. I think SJH relied on him a lot, and he did a lot to establish the club that we know today, which in terms of scale and resources is very different from the pre-SJH era.

 

Once Shepherd and Fletcher parted company, we became a one-man band and things went downhill.

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If SJH hadn't found 'Mr No Due Diligance' then NUFC would very likely have been unsellable such where the accumulated debt.

 

I disagree. If anything, the impending requirement for ongoing cash injections (due to contracted wages in the future) would have been the key deterrent, not the level of debt, which was there for all to see. And even then, the club would have been able to find a buyer, albeit at a much lower (and more realistic price) than what Ashley paid for it.

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If SJH hadn't found 'Mr No Due Diligance' then NUFC would very likely have been unsellable such where the accumulated debt.

 

I disagree. If anything, the impending requirement for ongoing cash injections (due to contracted wages in the future) would have been the key deterrent, not the level of debt, which was there for all to see. And even then, the club would have been able to find a buyer, albeit at a much lower (and more realistic price) than what Ashley paid for it.

 

As I recall, SJH had been trying to find a buyer for some months beforehand. There was lots of talk of Hedge Funds, but I think that nothing materialised once the buyer looked at the books and / or was asked to provide proof of funds.

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Interesting to note that according to that article the debt has dropped from £150m to £111m, all of which is to Ashley. On the previous set of accounts the debt to Ashley alone was £140m.

 

The piece is blatant propaganda btw. :lol:

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As I recall, SJH had been trying to find a buyer for some months beforehand. There was lots of talk of Hedge Funds, but I think that nothing materialised once the buyer looked at the books and / or was asked to provide proof of funds.

 

You'd have had to be mad to pay the price that was indicated by our share price at the time. Had a year passed and the cash position deteriorated further, then you would have seen that share price plunge pretty rapidly, making the club much cheaper to buy. The Shephalls did extremely well out of the deal with Ashley. We'd have been much more attractive at a more realistic price, but at the time we were taken over it was all the rage to buy yourself a football club for top dollar.

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As I recall, SJH had been trying to find a buyer for some months beforehand. There was lots of talk of Hedge Funds, but I think that nothing materialised once the buyer looked at the books and / or was asked to provide proof of funds.

 

You'd have had to be mad to pay the price that was indicated by our share price at the time. Had a year passed and the cash position deteriorated further, then you would have seen that share price plunge pretty rapidly, making the club much cheaper to buy. The Shephalls did extremely well out of the deal with Ashley. We'd have been much more attractive at a more realistic price, but at the time we were taken over it was all the rage to buy yourself a football club for top dollar.

 

When the hedge funds were looking at the club our share price was about half what Ashley ended up paying. I should know, I bought a few shares at the time and made a decent profit when Ashley waded in    :lol:

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Interesting to note that according to that article the debt has dropped from £150m to £111m, all of which is to Ashley. On the previous set of accounts the debt to Ashley alone was £140m.

 

The piece is blatant propaganda btw. :lol:

 

The club owed Ashley £139.8 million in the last accounts, £28.8 million was secured against future broadcasting income, £111 milion was unsecured loans.  Of the £28.8 million, £12.3 million was due to be repaid in August 2010, the rest was due after that date and no earlier that August 2011.

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When the hedge funds were looking at the club our share price was about half what Ashley ended up paying. I should know, I bought a few shares at the time and made a decent profit when Ashley waded in    :lol:

 

I'm sure they'd have flipped it pretty quickly if Paragon actually took control of the club. The club had an enterprise value of about £200m when Ashley bought it. Absolutely mental amount.

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If SJH hadn't found 'Mr No Due Diligance' then NUFC would very likely have been unsellable such where the accumulated debt.

 

I disagree. If anything, the impending requirement for ongoing cash injections (due to contracted wages in the future) would have been the key deterrent, not the level of debt, which was there for all to see. And even then, the club would have been able to find a buyer, albeit at a much lower (and more realistic price) than what Ashley paid for it.

 

You reckon ??? In the year before the sale they (the club) spent £6 million unsuccesfully trying to do just that. Anyone who did dilligence ran a mile.

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Interesting to note that according to that article the debt has dropped from £150m to £111m, all of which is to Ashley. On the previous set of accounts the debt to Ashley alone was £140m.

 

The piece is blatant propaganda btw. :lol:

 

The club owed Ashley £139.8 million in the last accounts, £28.8 million was secured against future broadcasting income, £111 milion was unsecured loans.  Of the £28.8 million, £12.3 million was due to be repaid in August 2010, the rest was due after that date and no earlier that August 2011.

 

How the f*** is it that much?

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When the hedge funds were looking at the club our share price was about half what Ashley ended up paying. I should know, I bought a few shares at the time and made a decent profit when Ashley waded in    :lol:

 

I'm sure they'd have flipped it pretty quickly if Paragon actually took control of the club. The club had an enterprise value of about £200m when Ashley bought it. Absolutely mental amount.

 

Disagree.

Ashley offered £1 a share (Shepherd screwed an additional 1p a share for his holding for some reason) which gave the club a market capitalisation of about £140 million which is what Ashley paid for it. At the time of Ashley's offer the share price was well short of £1 and had been for years and consequently the market cap had not been anywhere near £140 million. Anyway its old history now, doesn't matter much and is a bit off topic.

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Guest ObiChrisKenobi

 

Interesting to note that according to that article the debt has dropped from £150m to £111m, all of which is to Ashley. On the previous set of accounts the debt to Ashley alone was £140m.

 

The piece is blatant propaganda btw. :lol:

 

The club owed Ashley £139.8 million in the last accounts, £28.8 million was secured against future broadcasting income, £111 milion was unsecured loans.  Of the £28.8 million, £12.3 million was due to be repaid in August 2010, the rest was due after that date and no earlier that August 2011.

 

How the f*** is it that much?

 

Its your fault, you get paid too much.

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Interesting to note that according to that article the debt has dropped from £150m to £111m, all of which is to Ashley. On the previous set of accounts the debt to Ashley alone was £140m.

 

The piece is blatant propaganda btw. :lol:

 

The club owed Ashley £139.8 million in the last accounts, £28.8 million was secured against future broadcasting income, £111 milion was unsecured loans.  Of the £28.8 million, £12.3 million was due to be repaid in August 2010, the rest was due after that date and no earlier that August 2011.

 

How the f*** is it that much?

 

Its your fault, you get paid too much.

 

it's your bastarding fault if it's anyones. With your nice ball bag and lovely bibs etc.

 

I think my ball bag was stolen off numerous Prostitute's fish net stockings and stitched together to create a 'ball bag'. 

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Disagree.

Ashley offered £1 a share (Shepherd screwed an additional 1p a share for his holding for some reason) which gave the club a market capitalisation of about £140 million which is what Ashley paid for it. At the time of Ashley's offer the share price was well short of £1 and had been for years and consequently the market cap had not been anywhere near £140 million. Anyway its old history now, doesn't matter much and is a bit off topic.

 

I think we're in agreement here- enterprise value= market cap + net debt

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Newcastle United reveal annual accounts for 2010/11

By Dan Warburton Mar 8 2012

 

NEWCASTLE United’s financial affairs are today laid bare in the club’s annual accounts.

 

Mike Ashley’s Magpies finished the financial year - which ended on June 30, 2011 - with an operating profit of £13.3m.

 

Figures also revealed that the value of playing staff dropped by £17.2m in the period, but this is a standard accountancy tool.

 

This meant the club made an operational loss of £3.9m.

 

However the sports tycoon has wiped clean the club’s overdraft and all external debts. He is still owed £140m from the club but this is interest-free.

 

It marks a huge turnaround from the previous year when the club's operational loss stretched to £33.5m.

 

Newcastle United’s managing director Derek Llambias said today: “The club’s financial results for the year end June 20011 are extremely strong.

 

 

“We can now count ourselves amongst very few clubs across the UK and Europe who are operating at close to break-even.

 

“What is particularly pleasing is that we have achieved that whilst also ensuring we have a strong squad sitting firmly in the top third of the table and currently pushing for a European place.”

 

Newcastle’s return to the Premier League helped secure a 69% increase in turnover, from £52.4m in 2009/10 to £88.4m last year, following a three-fold increase in TV revenue.

 

The club sold players worth £36.7m - which included the £35m transfer of Andy Carroll to Liverpool in January 2011 - but spent more than £25m on bringing talent to Tyneside.

 

Since the end of the financial year the club has spent a further £25m in cash on players and wages, although this does not yet appear on the club accounts.

 

 

 

Read More http://www.chroniclelive.co.uk/north-east-news/evening-chronicle-news/2012/03/08/newcastle-united-reveal-annual-accounts-for-2010-11-72703-30490016/#ixzz1oXHU3Sg3

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