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Finances Announcement 13-14

Discussion in 'Newcastle United' started by Toon_Man_Sam1, Mar 4, 2015.

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  1. Toon_Man_Sam1

    Toon_Man_Sam1 Well-Known Member

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    I'm setting up a thread to discuss the annual finances, of which have yet to be made public as of yet. I can see that the subject has been touched on in other threads and it will definatley make interesting reading. Across twitter and on the thread I have seen alot of educated guess work regarding the amount of profit we have potentially made, but as the figures are going to be in relation to July 13 - July 14 it wont take into consideration the amount spent over the summer. For the period it covers, only two signings were made, remy & De Jong, both loan deals. Cabaye was sold too, so the expectancy will be huge and I would be extremely disappointed if a pre-tax profit less then £20m was announced, but in reality I believe it could be double.

    I really cant help but think we are running at as low a capacity as possible. We have non real big earners, most of the staff earn a pittance compared to rivals, we are ultimatley as streamlined as possible, the only draw back would be the amount we received (or dont receive) in sponsership money, like the Wonga deal, which isnt that big or the free SD adverts everywhere. Commercially as a single identity I dont think we are where we should be at all. Definatley not for a team competing in the most televised football league in the world.

    Many other teams, leicester, qpr liverpool chelsea have all announced their figures in recent days and it is expected that our will be released some time this week.
     
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  2. YankMag

    YankMag Active Member

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    Nice Idea. I personally have run the numbers based on our revenue last season and conservative wage cuts, even though I think they are substantial. Cabaye must have been a top earner. Gutierrez went on loan, so his savings probably covered de jongs loan. I think something fishy would be happening if our profits weren't around 40 million. Remember that wonga deal isn't alot compared to other teams, but it was much more than the virgin money deal. 4m -10m per year I believe.

    What I'm expecting to see is 35 million paid to the construction company for re-sodding of the practice field. Conveniently that company will be owned by MA.
     
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  3. Toon_Man_Sam1

    Toon_Man_Sam1 Well-Known Member

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    Have the works even begun, I was sure that they had'nt? surely there would only be a down payment/deposit of some kind until completion no? Then the resulting amount would be paid upon completion. You would have to be silly to pay a contractor in full before the works start! unless you own the company of course
     
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  4. YankMag

    YankMag Active Member

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    I was just saying, Ashley is a scam artist. I'm expecting some money to be siphoned out somewhere. Everyone knows he's made a huge profit this season. People won't be happy either way.
     
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  5. General Lee Speaking

    General Lee Speaking Well-Known Member

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    I've slightly changed my mind on him stockpiling cash to take out in one lump. I think the loans may be paid back in a couple of payments rather than have everyone know there is a massive amount of money in the bank and think they can fleece us, not to mention fans getting the hump as money not being used. So I wouldn't be surprised to see some of the loans paid back in these accounts.
     
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  6. Albert's Chip Shop

    Albert's Chip Shop Top Grafter
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    I just wanna see the results asap.
     
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  7. Geordieginola

    Geordieginola Well-Known Member

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    As long as the loans are paid back I don't care. Once the loan is paid back then he won't be able to take money out without it being highly taxed. The accounts get audited and the tax authorities will be sure that no scamming goes on. Either way. The club should have made a profit and as a company that will mean tax to be paid. That is pre any loan repayments. But the accounts will make an interesting read. I was at a clients the other day who owns a corporate box and he says he is a nice fella. Is financially astute. So even though we don't like the lack of spends the business side is in top condition. This is only a good thing for is.
     
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  8. Lord Jonjomort

    Lord Jonjomort Well-Known Member

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    In my opinion, this club and in fact any club should really only aim to make a profit of £1 over the course of a year. Anyone making a loss is running badly and outside their means, anyone making money isn't then reinvesting. Unless the owner of the club specifically and selfishly needs to make money out of the club over and above a salary (yay Capitalism), there is no compelling reason for a club to do anything other than break even. This includes and extends to debt management, by the way, so we have no grounds for complaint if the club made £70m and paid MASH Holdings £69.99m.

    My issue with it all is the inevitable - we'll sit there looking financially cocksure with £40m sat in a fcking bank, on top of all the other profits we've made that just haven't been spent. And in the meantime the manager has no option but to pick Sammy fcking Ameobi, Gabby fcking Obertan and Mike fcking Williamson. I mean, great moment for Jonas, but the embarrassment is that he's brought on as a legitimate substitute, rather than as sentiment, because we have no fcker else!!!
     
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  9. Consett Mag

    Consett Mag Well-Known Member

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    There should be profits of around £40m. Accountants do things with numbers. We'll see soon enough what Ashley wants to declare.
     
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  10. Freddd

    Freddd Well-Known Member

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    There is no reason why a club owner shouldn't want a return on investment. The owner of every other business does. Football isn't a charity or a community interest association.

    Having a reserve against future adverse events is also wise
     
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  11. Lord Jonjomort

    Lord Jonjomort Well-Known Member

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    Disagree. First, any owner could take a bonus, share or salary related amount in keeping with their expectancies. Owning a football club offers limited potential for ROI these days, no owner should be under any other illusion. It is not investment banking, it is not property, it is not sales, it is quite unique and as has been proven it is almost impossible to use it for significant capital gains.

    Second, your playing staff should be your liquid assets. There should be no need to have a cash-related contingency plan. Your better players should be worth enough, on top of parachutes, to offer enough security in the event of relegation.
     
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  12. YankMag

    YankMag Active Member

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    Even if mike ashley took out 10m in cash per season, it would be a great ROI considering that his 250m pound investment in the club is going to be worth 600-700 million once the new tv deal kicks in. Not to mention all the free advertising on the most watched league in the world. Hopefully the TV money is enough to allow us to invest in the same manor but with the 10-15m pound players rather than the 0-8m pounders.
     
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  13. Lord Jonjomort

    Lord Jonjomort Well-Known Member

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    He can only get a return on his investment once the money he has spent on it (currently £263m) is recouped and improved on. And it's only worth what someone offers for it. It may be on some beer mat somewhere Ashley's adding it up, but ultimately the ROI on Newcastle is actually linked to Sports Direct's success via global marketing, so it's all a bit intangible. So, back to square one, the infuriating part is that the club does not need £40m in the bank, it needs £40m on the pitch.
     
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  14. Warmir Pouchov

    Warmir Pouchov Better than JPF

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    I don't know why everyone is worried, its obvious Mike has just been saving up for a rainy day, or Remi Garde day. That is this summer and Remi will arrive armed with Grenier, Lacazette, and Umtiti. Santon will re-enter the fold and all will be lovely and rosy.

    More morphine please nurse.
     
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  15. Lord Jonjomort

    Lord Jonjomort Well-Known Member

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    For me, there's two scenarios. Low risk and lower risk, Steve McLaren and John Carver.

    If I were a betting man, I'd take Steve to come in, John to stay on, one or two joining from Derby as a result and some spending.
     
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  16. Freddd

    Freddd Well-Known Member

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    Find this odd in many respects.

    1. The gist of the whole of the thread is that we are expected to show a profit of £40 - £70 million. If anyone of the posters are correct, the club offers the prospect of a very good return on investment.

    2. Shares in a company are property, especially a profitable one.

    3. Se point #1. Historically profit may have been difficult but the revenue stream of premiership clubs have increased markedly in the last 3 - 4 years,

    4. If your playing staff are your contingency plan, then in the event of unexpected expenses or loss of revenue you will have to start selling players. This doesn't strike me as ideal.
     
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  17. Lord Jonjomort

    Lord Jonjomort Well-Known Member

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    1. £70m on a £270m outlay is a good ROI? Only if you get quite a lot more than £200m back on top.
    2. By "property" I mean bricks and mortar.
    3. So has costs.
    4. Coupled with parachute payments, it's utterly inevitable due to many factors, greatest of which being wage structure.
     
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  18. Delusional Full Stop

    Delusional Full Stop Here to serve all your counselling needs.
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    Anyone else immediately think of Carry on Cowboy?

    On a more serious level £70M on £270M is a good ROI. He still has the capital goods (ownership of the Club) and the £70M is profit /interest on that captal ggod.

    Try to get a return of about 25% pa anywhere else.
     
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  19. Lord Jonjomort

    Lord Jonjomort Well-Known Member

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    So........are these figures actually going to be released?!
     
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  20. Sheikh_of_Araby

    Sheikh_of_Araby Well-Known Member

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    Probably still trying to work out how they can disguise £20-30 million filtering out to MASH.
     
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