NUFC finances

[The College Dropout]

I guess the secondary aspect is quelling some fan disdain by posting lower profits. But primarily it would be to avoid unnecessary payments to HMRC.

 

 

"Profit" is only an indication of spending power/investment. That's also been one of my points here. Profit does not equate to cash we have to invest into the club.

[mrmojorisin75]

Fucks sakes, there was me thinking the man was an absolute cunt. Pleased you set me straight.

[Happy Face]

Weird. Expected a much higher profit.

 

I'd take a "creatively" low profit, for tax reasons, coupled with £25 Mill cash at bank though (not holding my breath)

 

Can you fiddle money you've just hoyed into the bank as a cost like?

 

Oh aye, if you think about it that's basically what amortisation is, it's a book cost but it's not real cash leaving the bank.

 

But without saying "the stadium fell apart" I don't see it stretching to £30m on that front.

 

I suppose what we have here is a sea change.  We've gone from a club that would cut (accounting and real) costs wherever possible to move the club towards profitability on the books.  Now we have a profitable club the accounting department switch all their effort to making costs as high as possible (without the club actually incurring real costs) to avoid getting into a tax paying situation.

 

 

 

This is how much the new TV deal for 13/14 has added to each clubs reported operating profits from 12/13...

 

[The College Dropout]

f***s sakes, there was me thinking the man was an absolute c***. Pleased you set me straight.

He is a cunt. But not for being creative with the accounts. That's my point. Keeping cash within the club would be brilliant, if we actually planned to invest it.

 

The only incentive he has for posting a large profit is perhaps enticing an investor/someone looking to buy the club. Clearly, that's not the case.

[mrmojorisin75]

f***s sakes, there was me thinking the man was an absolute c***. Pleased you set me straight.

He is a cunt. But not for being creative with the accounts. That's my point. Keeping cash within the club would be brilliant, if we actually planned to invest it.

 

The only incentive he has for posting a large profit is perhaps enticing an investor/someone looking to buy the club. Clearly, that's not the case.

Er yeah, keeping cash within the club with no intention of spending it on players just to avoid tax is what makes him a cunt. That's precisely what I've been saying the whole time.

[Shays Given Tim Flowers]

To be fair Mojo you seemed to miss TCD's point. You're both saying the same thing.

[Toonpack]

Weird. Expected a much higher profit.

 

I'd take a "creatively" low profit, for tax reasons, coupled with £25 Mill cash at bank though (not holding my breath)

 

Can you fiddle money you've just hoyed into the bank as a cost like?

 

Oh aye, if you think about it that's basically what amortisation is, it's a book cost but it's not real cash leaving the bank.

 

But without saying "the stadium fell apart" I don't see it stretching to £30m on that front.

 

I suppose what we have here is a sea change.  We've gone from a club that would cut (accounting and real) costs wherever possible to move the club towards profitability on the books.  Now we have a profitable club the accounting department switch all their effort to making costs as high as possible (without the club actually incurring real costs) to avoid getting into a tax paying situation.

 

 

 

This is how much the new TV deal for 13/14 has added to each clubs reported operating profits from 12/13...

 

 

I "hope" they're not real costs and that the bank balance is extremely healthy.

[morpeth mag]

The most sensible guess is that we've revalued the squad down and taken the hit as a cost. But given that Cabella, DeJong, Janmaat etc were bought after the accounts closed its hard to see where the £25m would come from given how little we have spent on players. Anita might account for £3m if he us written off as a player with any value. Maybe £3m for Cisse. Can't believe Colo has any book value left. Not sure who else? Sissoko was only £2m and is worth more now.

Any chance there could be manipulation of the training ground development. What if the present set-up still had capital value that is being written off? Can we pay architect fees etc for the new development from operating costs?

 

Just some thoughts.

[Deuce]

18.7 million

 

http://s2.ezgif.com/tmp/ezgif-2587044227.gif

[Taylor Swift]

Has the government offered any depreciation incentives so that we can depreciate assets faster? This would be a chance for them to bring in future costs to reduce current profit.

 

I'm failing to see how costs have increased so much. Seriously. A £30m rise in costs is nothing to laugh about.

[The College Dropout]

To be fair Mojo you seemed to miss TCD's point. You're both saying the same thing.

I think he's doing it on purpose to be cool.

 

From a NUFC fans perspective - there's nothing wrong with the basics of what we think he's done with the accounts. If he was going to go on a spending spree he would do the same thing.

The negativity for me is that it's an indication he's not wanting to sell. A business posting large profits with little growth screams "come and get me" to investors. Keeping it in the club is an indication he wants his own assets to have loads of cash and increase his wealth.

[Dave]

Anyway, would £18m buy a centre half better than Mike Williamson? I reckon it might.

[AyeDubbleYoo]

Anyway, would £18m buy a centre half better than Mike Williamson? I reckon it might.

 

 

Bold prediction David.

[Interpolic]

It's a good point like, whether the profit's as high as expected or not they recently admitted pulling out of a deal for a centre half in January, just in case the MYM transfer didn't go through.  I know we're talking different financial years but I think the point still stands.

[mrmojorisin75]

 

 

To be fair Mojo you seemed to miss TCD's point. You're both saying the same thing.

I think he's doing it on purpose to be cool.

 

From a NUFC fans perspective - there's nothing wrong with the basics of what we think he's done with the accounts. If he was going to go on a spending spree he would do the same thing.

The negativity for me is that it's an indication he's not wanting to sell. A business posting large profits with little growth screams "come and get me" to investors. Keeping it in the club is an indication he wants his own assets to have loads of cash and increase his wealth.

 

Jesus. That's where the negativity is for you is it? I'm a football fan, or I was, I don't give a shit about all the financial bollocks. We have lots of cash being hidden away while the club rots from the inside out, that's about the size of it.

[Conjo]

Anyway, would £18m buy a centre half better than Mike Williamson? I reckon it might.

 

Finally someone looking at it in simpler terms.

 

I think so too btw.

[Mole_Toonfan]

Anyway, would £18m buy a centre half better than Mike Williamson? I reckon it might.

 

[The College Dropout]

 

 

To be fair Mojo you seemed to miss TCD's point. You're both saying the same thing.

I think he's doing it on purpose to be cool.

 

From a NUFC fans perspective - there's nothing wrong with the basics of what we think he's done with the accounts. If he was going to go on a spending spree he would do the same thing.

The negativity for me is that it's an indication he's not wanting to sell. A business posting large profits with little growth screams "come and get me" to investors. Keeping it in the club is an indication he wants his own assets to have loads of cash and increase his wealth.

 

Jesus. That's where the negativity is for you is it? I'm a football fan, or I was, I don't give a s*** about all the financial bollocks. We have lots of cash being hidden away while the club rots from the inside out, that's about the size of it.

 

Okay let me put it to you like this - hiding the money in the club, actually means we could spend more cash on investment than otherwise because the cash would be taxed. Declaring a bigger profit just means we give more cash to HMRC.

 

You invest with "cash" not "profit". We have more "cash" if Ashley is playing the system. What he plans to do with said cash - he must just want to keep in one of his houses. Unfortunately, NUFC is his house and by keeping "cash" in us, he must not want to sell it. Unless someone can think of another reason?

[Guest antz1uk]

Anyway, would £18m buy a centre half better than Mike Williamson? I reckon it might.

 

 

would probably buy 18 better than that useless oaf

[Mole_Toonfan]

18? don't get ahead of yourself there mate, don't want to be like Leeds do you?!

[The College Dropout]

A second negative is that people will assume we have 18m to spend on players. Add in wages over the course of a contract, that's 1 Purple.

 

But using "Profit" as the figure of which shows how much "cash" we have, is the real mistake in any case.

[Mole_Toonfan]

A second negative is that people will assume we have 18m to spend on players. Add in wages over the course of a contract, that's 1 Purple.

 

But using "Profit" as the figure of which shows how much "cash" we have, is the real mistake in any case.

 

Do we have the money to not be playing Janmaat at CB? yes? argument over.

[mrmojorisin75]

 

 

To be fair Mojo you seemed to miss TCD's point. You're both saying the same thing.

I think he's doing it on purpose to be cool.

 

From a NUFC fans perspective - there's nothing wrong with the basics of what we think he's done with the accounts. If he was going to go on a spending spree he would do the same thing.

The negativity for me is that it's an indication he's not wanting to sell. A business posting large profits with little growth screams "come and get me" to investors. Keeping it in the club is an indication he wants his own assets to have loads of cash and increase his wealth.

 

Jesus. That's where the negativity is for you is it? I'm a football fan, or I was, I don't give a s*** about all the financial bollocks. We have lots of cash being hidden away while the club rots from the inside out, that's about the size of it.

 

Okay let me put it to you like this - hiding the money in the club, actually means we could spend more cash on investment than otherwise because the cash would be taxed. Declaring a bigger profit just means we give more cash to HMRC.

 

You invest with "cash" not "profit". We have more "cash" if Ashley is playing the system. What he plans to do with said cash - he must just want to keep in one of his houses. Unfortunately, NUFC is his house and by keeping "cash" in us, he must not want to sell it. Unless someone can think of another reason?

 

I've been skimming replies on my phone here.  I fully understand all of the things you're saying and agree that in a normal business it's good practice but we know he's not going to invest any of the cash so that's that.  We're a football club without a functioning team, backroom or medical staff - he can hide all the fucking cash he wants it's utterly irrelevant if it's going to stay there forever as is the money "saved" from HMRC.

 

 

[Shays Given Tim Flowers]

To be fair Mojo you seemed to miss TCD's point. You're both saying the same thing.

I think he's doing it on purpose to be cool.

 

From a NUFC fans perspective - there's nothing wrong with the basics of what we think he's done with the accounts. If he was going to go on a spending spree he would do the same thing.

The negativity for me is that it's an indication he's not wanting to sell. A business posting large profits with little growth screams "come and get me" to investors. Keeping it in the club is an indication he wants his own assets to have loads of cash and increase his wealth.

 

You do yourself no favours 

 

To say there is nothing wrong is a bit of an over-simplification, context is quite important when judging Mike Ashley and NUFC.

[Figures 1-0 Football]

Hi, I am Newcastle United.

I make a profit.

I have loads of money in the bank.

I have a coach as a manager, a secretary as a managing director.

In my last game, I only had two defenders playing in their correct position.

One of them was Mike Williamson.

But it's okay as we have survived relegation.

See you next season xxx