Newcastle United Finances

17th April 2012, 08:30 AM

Does anyone know where I can get a glance at the Newcastle United finances?

I ended up in a healthy debate as to what constitutes an operating profit when talking about them in the pub last night.

Harry Angstrom · 17th April 2012, 08:33 AM

Quote:

Originally Posted by Mackem_Beefy

Does anyone know where I can get a glance at the Newcastle United finances?

I ended up in a healthy debate as to what constitutes an operating profit when talking about them in the pub last night.

They had a profit of £14m before player amortisation of £17m.

And a £36m profit on player sales.

They are in very good financial health, i'm afraid.

17th April 2012, 08:37 AM

Quote:

Originally Posted by Harry Angstrom

They had a profit of £14m before player amortisation of £17m.

And a £36m profit on player sales.

They are in very good financial health, i'm afraid.

Bollocks.

What I want to know is can a football or any other trading company have an 'operating profit' whilst still in debt?

This is hypothetical. Say they are £100 million in debt and repayment terms mean they have to pay back £20 million per year. If their income is £40 million for the year, that's £20 million more in once the debt payment is made. Would that £20 million constitute an operating profit for the company?

Or can a company not technically make a profit unless they have no debt?

Ashley In!! · 17th April 2012, 08:46 AM

Quote:

Originally Posted by Mackem_Beefy

Bollocks.

What I want to know is can a football or any other trading company have an 'operating profit' whilst still in debt?

This is hypothetical. Say they are £100 million in debt and repayment terms mean they have to pay back £20 million per year. If their income is £40 million for the year, that's £20 million more in once the debt payment is made. Would that £20 million constitute an operating profit for the company?

Or can a company not technically make a profit unless they have no debt?

Of course they can.

Paying back the debt has nothing to do with the operating profit.

17th April 2012, 09:37 AM

Quote:

Originally Posted by Ashley In!!

Of course they can.

Paying back the debt has nothing to do with the operating profit.

Perhaps this thread should be SMB'ed under 'Things Lasses Say #173463862836128346192471 0478190284'. I thought I was going daft in the head.

It was a remark the landlady of my local (pics would crack any camera lens or mirror within a 50 mile radius so definitely no) came out with in relation to Newcastle United and their former(?) debts.

The Newcastle United Official Photographer drinks in my local and he's obviously been making his mouth go again. He's never wrong and she believes everything he says (and no he's not rattling her)

FFS!!!

shepherd88 · 17th April 2012, 09:37 AM

Company house if ya want to look at their accounts.

TheDufferofStGeorge · 17th April 2012, 09:48 AM

Quote:

Originally Posted by Mackem_Beefy

Bollocks.

What I want to know is can a football or any other trading company have an 'operating profit' whilst still in debt?

This is hypothetical. Say they are £100 million in debt and repayment terms mean they have to pay back £20 million per year. If their income is £40 million for the year, that's £20 million more in once the debt payment is made. Would that £20 million constitute an operating profit for the company?

Or can a company not technically make a profit unless they have no debt?

Profit and cashflow are 2 separate things. Operating profit is (simply put) "daily" income less "daily" running costs. Writing off the cost of players contracts is called amortisation and effects current profit but not current cashflow (as you have already paid out all the cash to buy the player).

So yes a company can be in huge debt and still make a big profit

knumbskull · 17th April 2012, 10:03 AM

Quote:

Originally Posted by Mackem_Beefy

Perhaps this thread should be SMB'ed under 'Things Lasses Say #173463862836128346192471 0478190284'. I thought I was going daft in the head.

It was a remark the landlady of my local (pics would crack any camera lens or mirror within a 50 mile radius so definitely no) came out with in relation to Newcastle United and their former(?) debts.

The Newcastle United Official Photographer drinks in my local and he's obviously been making his mouth go again. He's never wrong and she believes everything he says (and no he's not rattling her)

FFS!!!

you're a shite greedminds like.

MCFC · 17th April 2012, 10:07 AM

http://swissramble.blogspot.se/searc...astle%20United

You can hardly go wrong with Swissramble..Best footy finance blogger ever.

not spavin · 17th April 2012, 10:08 AM

Quote:

Originally Posted by Harry Angstrom

They had a profit of £14m before player amortisation of £17m.

And a £36m profit on player sales.

They are in very good financial health, i'm afraid.

I thought their last accounts were published with the line "we nearly broke even" (i.e. we made a loss). Still look in decent shape, as to be expected by a selling club who pay coaching staff in debt forgiveness.