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Let's all laugh at Newcastle

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Every day that passes by without the turmoil resolved is making it more and more likely they will never return, Championship clubs are already a good month ahead of them in their preparations. Hopefully the due dilligence will take them past the window closing and they sign nee ****.........VIVA THEIR DEMISE !!!!!!
 

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Courtesy of Barry Taylor :lol::oops:

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Just another one of many :lol:

Still have'nt seen that mag shirt in the viewing gallery at work yet :evil:
 
Magnifico said:
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Interest
Up to 2000 the club has cash in the bank and was actually receiving interest on this.

From 2001 to 2005 the club only paid interest on its long-term loan taken out to extend the ground. This was set at £4.5m a year up to 2016.

The graph shows how things started to deteriorate in 2006 and again in 2007. Close to an extra £3m in interest payments were needed in 2007 compared to a couple of years earlier.

It has been calculated that if the amounts paid out in dividends had been used instead to pay off the long-term ground loan then the ground would now be paid for. The directors of the club decided that the money was better in the pockets of the shareholders than being in invested in the future of the club.

The amount of interest paid out in 2008 dropped but not as significantly as had been hoped for. Mike Ashley had to pay off most of the loans set up by Shepherd/Hall as part of taking over the club. It had been hoped that this meant the club would have little in the way of interest payments left to pay. The figure of £6.4m was mainly due to £4.9m having to be paid off as part of the settling of loans. This will not appear again in 2009, and the interest figure should drop to about £1.5m.

Something new has appeared in the books this year. Last year it looked as though Mike Ashley had paid off all the debts of the club. This would have cost Mike Ashley to do, roughly £70m, but was great for the club. NUFC suddenly stopped paying interest on their loans, and therefore had more money for other things. As mentioned above this didn't happen instantly but will happen in the long run. The concern is that the books now show that this has been put in as a a £100m loan from Ashley, that will have to be paid off if anyone buys the club from him. Ashley has also attached a clause against his loan saying he can charge interest at 0.5% over the inter bank lending rate. He has not made that charge in 2008. If he did it today (23rd January 2009) then he could charge the club £2.69m interest for the year.





:lol:
 
shaun61 said:
Interest
Up to 2000 the club has cash in the bank and was actually receiving interest on this.

From 2001 to 2005 the club only paid interest on its long-term loan taken out to extend the ground. This was set at £4.5m a year up to 2016.

The graph shows how things started to deteriorate in 2006 and again in 2007. Close to an extra £3m in interest payments were needed in 2007 compared to a couple of years earlier.

It has been calculated that if the amounts paid out in dividends had been used instead to pay off the long-term ground loan then the ground would now be paid for. The directors of the club decided that the money was better in the pockets of the shareholders than being in invested in the future of the club.

The amount of interest paid out in 2008 dropped but not as significantly as had been hoped for. Mike Ashley had to pay off most of the loans set up by Shepherd/Hall as part of taking over the club. It had been hoped that this meant the club would have little in the way of interest payments left to pay. The figure of £6.4m was mainly due to £4.9m having to be paid off as part of the settling of loans. This will not appear again in 2009, and the interest figure should drop to about £1.5m.

Something new has appeared in the books this year. Last year it looked as though Mike Ashley had paid off all the debts of the club. This would have cost Mike Ashley to do, roughly £70m, but was great for the club. NUFC suddenly stopped paying interest on their loans, and therefore had more money for other things. As mentioned above this didn't happen instantly but will happen in the long run. The concern is that the books now show that this has been put in as a a £100m loan from Ashley, that will have to be paid off if anyone buys the club from him. Ashley has also attached a clause against his loan saying he can charge interest at 0.5% over the inter bank lending rate. He has not made that charge in 2008. If he did it today (23rd January 2009) then he could charge the club £2.69m interest for the year.





:lol:
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if that is true then I don't see why anyone would want to purchase a championship team for £100 million, then pay another £100 million for the loan. Then pay off the contracts of a lot of players on massive contracts who refuse to budge because of their salaries, then pay a ridiclous wage if they appoint Shearer, and then invest in a new team!

let's face it they are fucked, and if FFS and co realise all this upon seeing the financial documents whilst in talks; I am sure their faces will turn sour.

There's no way his consortium have that much money and even if they did is that even worth investing into a championship side? :lol:

On the current track I am sure they will have fallen out of exsistence by 2018...
 
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scott934 said:
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Profits and Dividends
The graph below shows the reported profits of Newcastle United.

This graph shows the profits made by the club each year since 1998. It also includes the amount paid out to shareholders in dividends each year.

It is clear that the club generally loses money. The best year was 2004 when the club made a profit of £215,000 (two hundred and fifteen thousand).

No one really wants the club to making a huge profit, the aim is to invest in the playing squad, or the ground. There is though a need to not lose money every year. The figures for 2006 and 2007 show how the club was spiralling out of control. In 2007 the last year Freddie Shepherd was running the club the loss was £32.9m or over £600,000 each and every week. The figure improved fantastically under the first year of Ashley being owner, but it was still as bad as any other year in the last 10, apart from 2007.

The total losses for the ten years shown was £134m. So in only ten years the club spent £134m more than it took in. The dividends were of course part of this. The total dividend payments for that period were £32.4m.

In the 2008 season just reported the loss is awful, even if it is hugely better than the year before. The main expenditure is of course player wages, and on top of that transfer fees. The wages were generally agreed when Shepherd was the man in control, and most of the transfers took place in July/August 2007 when Shepherd was still at the club. It is clear that the club has been living way beyond what it could afford, with losses for the last three years totalling £68m.

Ashley would seem to have stabilised the club, but the cost of this is that there is no money to be spent, as it was all spent in 2006 and 2007.

If the target is to break even, then somewhere along the line the outgoings must reduce by £20m, or the incomings increase by that amount, or some combination of the two. The potential to improve the incomings would look to be difficult, at least until the club qualify for the Champions League again. The potential to improve outgoings would look to be a better avenue. The bigger concern is that income may have dropped for the current season, with club shops being shunned, and match attendances being down.

In 2008 Newcastle had wages of £70m, Everton had wages of £45m. If we had had their wages we would have made a profit in 2008.

The club has been paying large sums in interest payments to banks. This should reduce by about £6m in 2009, which will help the results a lot.

In each of the last four seasons the club has lost a manager and had to pay them compensation, this is classified as an "exceptional" cost, even if it does seem to happen regularly. At some point the club will stop doing this and this will stop the money leaking out. The 2008 results show the £4.5m paid to get rid of Allardyce and his staff, it does not include any money that may have to be paid to Keegan for his "resignation".



Come back FFS and finish the job off man:lol:
 
Just thought i would bump the thread with a link to the NA scummers and there thoughts for the future
:-D:-D:-D

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Something i quickly knocked up with the talk of fat freddy buying the club again :)

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Heard there is a new banner, which a well known SMB member may or may not know something about!!

Pictures ASAP lads!
 
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