Wallsendmag Posted April 20, 2015 Share Posted April 20, 2015 Interesting article about our finances if you're into that sort of thing; http://swissramble.blogspot.ch/2015/04/newcastle-united-in-rut.html?m=1 Link to post Share on other sites More sharing options...
Dave Posted April 20, 2015 Share Posted April 20, 2015 Excellent, yet depressing. Link to post Share on other sites More sharing options...
TheHoob Posted April 20, 2015 Share Posted April 20, 2015 Was hoping Swissramble would put something out. Link to post Share on other sites More sharing options...
Guest chopey Posted April 20, 2015 Share Posted April 20, 2015 A very well written and comprehensive article, however nothing in there convinces me that we are going to employ a good manager and spend on players, in fact I can see plenty of reasons in that article for us not to spend this summer. Link to post Share on other sites More sharing options...
Village Idiot Posted April 21, 2015 Share Posted April 21, 2015 Excellent article. http://1.bp.blogspot.com/-d57yeOXl9Kw/VTOr3RZmv2I/AAAAAAAAIcc/1Dqk6tauqMI/s1600/4%2BNewcastle%2BProfit%2BLast%2B4%2BSeasons%2B2014.jpg Says it all. This, too: http://3.bp.blogspot.com/-VIN5lynWwHE/VTOsvpSr3HI/AAAAAAAAIdU/JlW1bJgh2ok/s1600/11%2BNewcastle%2BRevenue%2BGrowth%2B2014.jpg Shows that the club isn't well stewarded at all, they are just milking the TV revenues, while there's no growth on other fronts. Hell, commercial and match day revenue where higher before he took over! Link to post Share on other sites More sharing options...
Guest chopey Posted April 21, 2015 Share Posted April 21, 2015 Eh that chart makes no sense shouldn't Man City, Liverpool, Aston Villa and Chelsea have been relegated by now Link to post Share on other sites More sharing options...
ToonTastic Posted April 21, 2015 Share Posted April 21, 2015 Eh that chart makes no sense shouldn't Man City, Liverpool, Aston Villa and Chelsea have been relegated by now Yeah they'll go the way of Portsmouth and Leeds soon enough, they can't have long left. Link to post Share on other sites More sharing options...
Wallsendmag Posted April 21, 2015 Share Posted April 21, 2015 Eh that chart makes no sense shouldn't Man City, Liverpool, Aston Villa and Chelsea have been relegated by now Yeah they'll go the way of Portsmouth and Leeds soon enough, they can't have long left. And Blackpool. Don't forget Blackpool. Link to post Share on other sites More sharing options...
Guest chopey Posted April 21, 2015 Share Posted April 21, 2015 Just a quick question to the resident accountants, If someone buys a company that has large cash reserves does that money stay with the company or does the previous owner take it ? Link to post Share on other sites More sharing options...
LV Posted April 21, 2015 Share Posted April 21, 2015 I'm not an accountant and not any good at maths whatsoever but surely in that situation the selling company would just get rid of its cash reserves somehow before selling up? Link to post Share on other sites More sharing options...
Beren Posted April 21, 2015 Share Posted April 21, 2015 Just a quick question to the resident accountants, If someone buys a company that has large cash reserves does that money stay with the company or does the previous owner take it ? Cash reserves are factored into the valuation of the company, so whatever cash is removed by the existing owner prior to sale reduces the price the company is sold by under normal circumstances. Link to post Share on other sites More sharing options...
Guest chopey Posted April 21, 2015 Share Posted April 21, 2015 Just a quick question to the resident accountants, If someone buys a company that has large cash reserves does that money stay with the company or does the previous owner take it ? Cash reserves are factored into the valuation of the company, so whatever cash is removed by the existing owner prior to sale reduces the price the company is sold by under normal circumstances. So if you are planning to sell your company is it prudent to get rid of your cash reserves before a company has a chance to do due diligence and then increase your valuation to suit ? Link to post Share on other sites More sharing options...
The College Dropout Posted April 21, 2015 Share Posted April 21, 2015 Just a quick question to the resident accountants, If someone buys a company that has large cash reserves does that money stay with the company or does the previous owner take it ? Cash reserves are factored into the valuation of the company, so whatever cash is removed by the existing owner prior to sale reduces the price the company is sold by under normal circumstances. So if you are planning to sell your company is it prudent to get rid of your cash reserves before a company has a chance to do due diligence and then increase your valuation to suit ? No. The value of the cash will be wiped off the companies valuation. Link to post Share on other sites More sharing options...
AyeDubbleYoo Posted April 21, 2015 Share Posted April 21, 2015 Also, you can't just dispose of cash without something to do with it. If Ashley took it out as dividends he would be taxed to the nines. Link to post Share on other sites More sharing options...
LV Posted April 21, 2015 Share Posted April 21, 2015 Couldn't he just buy more assets with it elsewhere? Link to post Share on other sites More sharing options...
AyeDubbleYoo Posted April 21, 2015 Share Posted April 21, 2015 Couldn't he just buy more assets with it elsewhere? Well the company could, but then the assets would belong to the company in the same way as the cash does. As much as it doesn't seem like it, Mike Ashley and the company are different entities. Anyway, the cash makes the company more attractive to buyers and more valuable, so I doubt he would bother to dispose of it. Link to post Share on other sites More sharing options...
The College Dropout Posted April 21, 2015 Share Posted April 21, 2015 He could take some as dividends. I'm no expert but I don't think lots of cash in the bank makes the club more attractive. Being profitable does. I'm not certain but if the club is worth 100m (sans cash reserves) and has 50m in the bank, the buyer has to come up with 150m which obviously makes it harder to purchase. You would also purchase our debts. IMO Mike being unwilling to pay himself back is an indication he's not looking to sell. If he was looking to sell he would begin paying back his loan, investing in infrastructure and maximising profits to attract buyers. Link to post Share on other sites More sharing options...
morla84 Posted April 21, 2015 Share Posted April 21, 2015 Any chance he could be keeping the cash in the bank to increase the value of the club to sell in 2016, which was the date he said he wouldn't consider selling until? Would the club be more valuable with a big squad of players, or £50m in the bank? Link to post Share on other sites More sharing options...
AyeDubbleYoo Posted April 21, 2015 Share Posted April 21, 2015 Dividends are taxed pretty heavily above a threshold of about £36k IIRC. I can't see any point in him taking money out like that. Link to post Share on other sites More sharing options...
Colos Short and Curlies Posted April 21, 2015 Share Posted April 21, 2015 Companies can be bought by different means - eg through shares. When it's not a cash purchase then cash in the bank can be attractive (in some cases share based acquisitions are made to get your hands on free cash), if it's a cash purchase then it's more attractive to hold less cash for a buyer - typically assets are bought at a premium so in effect you would be buying each pound for pound + premium. Makes no sense from a buyers PoV Link to post Share on other sites More sharing options...
Matt Posted April 22, 2015 Share Posted April 22, 2015 typically assets are bought at a premium so in effect you would be buying each pound for pound + premium. Makes no sense from a buyers PoV Any premium would be applied to an enterprise value, which deducts cash. You wouldn't pay a premium to book value of net assets. Link to post Share on other sites More sharing options...
Heake Posted April 22, 2015 Share Posted April 22, 2015 This thread has (if it wasn't anyway) become an accountants wankfest. Link to post Share on other sites More sharing options...
AyeDubbleYoo Posted April 22, 2015 Share Posted April 22, 2015 This thread has (if it wasn't anyway) become an accountants wankfest. The accounts thread? Link to post Share on other sites More sharing options...
Dave Posted April 22, 2015 Share Posted April 22, 2015 Not enough talk about Williamson's tattoos in here for my liking. Link to post Share on other sites More sharing options...
Heake Posted April 22, 2015 Share Posted April 22, 2015 This thread has (if it wasn't anyway) become an accountants wankfest. The accounts thread? Link to post Share on other sites More sharing options...
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