Stifler Posted February 25, 2014 Share Posted February 25, 2014 One bit I don't get: While Newcastle United's use of its overdraft facility stood at £4.5million on 30th June 2013 - up from just £0.3million, the Club's debt remains static in the form of a £129million interest-free loan from owner Mike Ashley. If we've made 10 million profit and Ashley hasn't taken any loan back, how do we still have an overdraft? The overdraft will have been paid off, it's like personal bank accounts. Whatever money comes in goes to pay off the overdraft first, we can't make profit before paying off an overdraft. Link to post Share on other sites More sharing options...
AyeDubbleYoo Posted February 25, 2014 Share Posted February 25, 2014 Anyway IanW, you must be miffed as it's proven once again we're not reinvesting the money the club makes itself? Yep, I believe we should be investing in the club as much as possible. Not necessarily all on transfer fees, but we shouldn't exist to make a profit for anyone. Not that we've made any profit for anyone for a while. Link to post Share on other sites More sharing options...
Colos Short and Curlies Posted February 25, 2014 Share Posted February 25, 2014 we'll use the overdraft to cover daily operations. Although over time you would expect to see the profit result in cash, it may take a few months, a year or even a few years. Assuming we still pay transfer fees upfront £23m went out in cash in January, I'd guess some season ticket money and TV/league position money will be received after 1st July, hence needing the overdraft at 30th June Link to post Share on other sites More sharing options...
Unbelievable Posted February 25, 2014 Share Posted February 25, 2014 Anyway IanW, you must be miffed as it's proven once again we're not reinvesting the money the club makes itself? Yep, I believe we should be investing in the club as much as possible. Not necessarily all on transfer fees, but we shouldn't exist to make a profit for anyone. Not that we've made any profit for anyone for a while. 50 million profit over the past 3 financial periods, and another massive profit coming up. How does that not benefit our esteemed shareholder? Link to post Share on other sites More sharing options...
Teasy Posted February 25, 2014 Share Posted February 25, 2014 4 years of profit totalling over a 100 million and not a penny spent on transfers in the last 12 months But there has been money spent on transfers in the last 4 years though.. Link to post Share on other sites More sharing options...
Varadi Posted February 25, 2014 Share Posted February 25, 2014 we'll use the overdraft to cover daily operations. Although over time you would expect to see the profit result in cash, it may take a few months, a year or even a few years. Assuming we still pay transfer fees upfront £23m went out in cash in January, I'd guess some season ticket money and TV/league position money will be received after 1st July, hence needing the overdraft at 30th June Cheers Link to post Share on other sites More sharing options...
Jtm_92 Posted February 25, 2014 Share Posted February 25, 2014 What about the proposed 18 million he was supposed to take out last year ? Link to post Share on other sites More sharing options...
Unbelievable Posted February 25, 2014 Share Posted February 25, 2014 4 years of profit totalling over a 100 million and not a penny spent on transfers in the last 12 months But there has been money spent on transfers in the last 4 years though.. What's your point? We're still up a cool 100m over that 4 year period and still haven't bought a player in 12 months? Link to post Share on other sites More sharing options...
Rich Posted February 25, 2014 Share Posted February 25, 2014 What about the proposed 18 million he was supposed to take out last year ? £11m was duly paid back, with £18m due to be paid back. That sum has not been paid back yet, nor is there an intention to pay it back this season. UV posted that a few pages back, from one of the recent Fan Forums (September). Link to post Share on other sites More sharing options...
Jtm_92 Posted February 25, 2014 Share Posted February 25, 2014 What about the proposed 18 million he was supposed to take out last year ? £11m was duly paid back, with £18m due to be paid back. That sum has not been paid back yet, nor is there an intention to pay it back this season. UV posted that a few pages back, from one of the recent Fan Forums. Cheers, I had a feeling that the cabaye money would go towards that but fair enough. Link to post Share on other sites More sharing options...
Colos Short and Curlies Posted February 25, 2014 Share Posted February 25, 2014 Regarding the £18m, the impact on this years accounts depends on when he actually took the cash out - if before 30 June 2012 then its fully in those numbers and included in the overdraft figure, if it was only declared in 2012 but physically paid in the 2013 accounts period then it is another driver to why the overdraft will have increased Link to post Share on other sites More sharing options...
Rich Posted February 25, 2014 Share Posted February 25, 2014 What about the proposed 18 million he was supposed to take out last year ? £11m was duly paid back, with £18m due to be paid back. That sum has not been paid back yet, nor is there an intention to pay it back this season. UV posted that a few pages back, from one of the recent Fan Forums. Cheers, I had a feeling that the cabaye money would go towards that but fair enough. MA had to put £111m in to clear external debt and won't be paid back until the day MA sells the club. I'd also forgotten about that bit, which is worth mentioning. Link to post Share on other sites More sharing options...
LRD Posted February 25, 2014 Share Posted February 25, 2014 If he's just gonna let profits sit in the bank and toss off over them without spending it, I'd rather he just took some of it and lowered the debt owed to him. Ah but his supporters wouldn't be able to use the justification of him not spending a dime on those matchday advertising countered by not seeking interest on his loan though. Link to post Share on other sites More sharing options...
AyeDubbleYoo Posted February 25, 2014 Share Posted February 25, 2014 Anyway IanW, you must be miffed as it's proven once again we're not reinvesting the money the club makes itself? Yep, I believe we should be investing in the club as much as possible. Not necessarily all on transfer fees, but we shouldn't exist to make a profit for anyone. Not that we've made any profit for anyone for a while. 50 million profit over the past 3 financial periods, and another massive profit coming up. How does that not benefit our esteemed shareholder? It benefits him obviously, in that he doesn't have to subsidise us and/or some of the debt can be repaid. I just mean he hasn't actually made any new money. Not directly anyway, obviously SD has benefited. I would hope we would loosen the purse strings a bit in summer, given the new TV money and the Cabaye sale. Edit: Also depends a bit on FPP. Everyone else seems to be proceeding as if it doesn't exist. Either we're really shrewd or we're using it as an excuse to reduce our spending. Possibly a bit of both. Link to post Share on other sites More sharing options...
Doctor Zaius Posted February 25, 2014 Share Posted February 25, 2014 Bit cheeky but can anyone summarise the findings? Havent really got time to sift through pages of mini accountant posts. Link to post Share on other sites More sharing options...
Mike Posted February 25, 2014 Share Posted February 25, 2014 The profit / debt repayments on next year's accounts will be mental, having seen 2 transfer windows with no transfer spend, numerous high earners shifted off the books and £20m+ brought in by player sales. N-O tailgate for next year's accounts? Link to post Share on other sites More sharing options...
Rich Posted February 25, 2014 Share Posted February 25, 2014 Bit cheeky but can anyone summarise the findings? Havent really got time to sift through pages of mini accountant posts. Newcastle have announced a post-tax profit of £9.9m for the year ending June 2013. The figure represents an £8.5m increase in profit on the previous 12 months and, according to Newcastle, is down to "player trading, a strong commercial performance and a significant reduction in operational losses". Newcastle made a £10.6m profit on player sales, the bulk of which came from the sale of Demba Ba to Chelsea, although £28.7m was paid in transfer fees on the likes of Mathieu Debuchy, Yoan Gouffran and Moussa Sissoko. A 24.2% increase in commercial revenue drove overall turnover up to £95.9m, while matchday turnover was also up and operational losses significantly down - from £5.1m to £616,000. http://www1.skysports.com/football/news/11678/9184452 Link to post Share on other sites More sharing options...
Teasy Posted February 25, 2014 Share Posted February 25, 2014 4 years of profit totalling over a 100 million and not a penny spent on transfers in the last 12 months But there has been money spent on transfers in the last 4 years though.. What's your point? We're still up a cool 100m over that 4 year period and still haven't bought a player in 12 months? My point was you were looking at money we'd made in a 4 year period but ignoring anything we'd spend outside of the last 1 year. But now I'm not sure I even get what you're referring to. How are we up £100m? Link to post Share on other sites More sharing options...
TBG Posted February 25, 2014 Share Posted February 25, 2014 Bit cheeky but can anyone summarise the findings? Havent really got time to sift through pages of mini accountant posts. http://1.bp.blogspot.com/-6guSTq7TTuA/UGM4DSN4OGI/AAAAAAAADPM/adbTaCM1oW8/s320/lil-wayne-money.gif Link to post Share on other sites More sharing options...
Mick Posted February 25, 2014 Share Posted February 25, 2014 So we can afford to sack Pardew, bin the bastard. Link to post Share on other sites More sharing options...
Jtm_92 Posted February 25, 2014 Share Posted February 25, 2014 So gradually the debt will come down, how long this will take, who knows ?, however if he wants to sell, he will simply include the '111 million' debt into the asking price , I still remember that stupid 10 year executive box deal he wanted future owners to do. Link to post Share on other sites More sharing options...
AyeDubbleYoo Posted February 25, 2014 Share Posted February 25, 2014 I get their point obviously, but a strange time to be hammering lack of growth when there actually has been some growth. Link to post Share on other sites More sharing options...
Guest neesy111 Posted February 25, 2014 Share Posted February 25, 2014 Could the increase in commercial income be put down as to having more games for advertising space etc? It's a small gain isn't it, 2 million?? Link to post Share on other sites More sharing options...
Doctor Zaius Posted February 25, 2014 Share Posted February 25, 2014 Bit cheeky but can anyone summarise the findings? Havent really got time to sift through pages of mini accountant posts. Newcastle have announced a post-tax profit of £9.9m for the year ending June 2013. The figure represents an £8.5m increase in profit on the previous 12 months and, according to Newcastle, is down to "player trading, a strong commercial performance and a significant reduction in operational losses". Newcastle made a £10.6m profit on player sales, the bulk of which came from the sale of Demba Ba to Chelsea, although £28.7m was paid in transfer fees on the likes of Mathieu Debuchy, Yoan Gouffran and Moussa Sissoko. A 24.2% increase in commercial revenue drove overall turnover up to £95.9m, while matchday turnover was also up and operational losses significantly down - from £5.1m to £616,000. http://www1.skysports.com/football/news/11678/9184452 Cheers. So has Ashley took any money out of the club to repay himself? Furthermore does this incorporate any TV money from the new bumper TV deal? So out of the loop with this? Link to post Share on other sites More sharing options...
Ryan_Taylor Posted February 25, 2014 Share Posted February 25, 2014 When's the open top bus? Can wait to see Coloccini triumphantly lift the balance sheet above his head. Link to post Share on other sites More sharing options...
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