Money Situation - this window

[Jammy89]

Someone posted this on Newcastle Facebook group and i thought it was interesting enough to post here.

Those who economically good - does this make sense? Is it plausible etc?

---------------------------------------------------------------------------------------


I don't know if anyone else has been enough of a sad **** to look through the clubs publicly available accounts but let me sum it up.

Last accounts available are for the 15/16 season but using date from other clubs accounts i've pieced together what i think will be an accurate picture of the financial reality at NUFC.

Last season we would have made about £22m in match-day revenue. Probably another £15-20m in commercial revenue and about £45m in media revenue. So Revenue of about £87m. Not bad is it. Well it's down £30m on the previous year but then we had a net transfer profit of about £30m didn't we?

Did we? Simply put no. We spent about £11m on agent fees so that figure becomes only £19m net.

But still that is £106m. Although then you have to factor in that we paid a reported £73m in player wages. And on top of that we paid £3m to Rafa for the season. And an apparent £1m further to his backroom staff. And £150,000 to Lee Charnley of course.

Oh but one more thing in the accounts. You know how Mike Ashley hates paying in installments for players? He made an exception the year we went down.

And that meant that last year in addition to what we spent on players in the summer we spent £28m on transfers of players we already had at the club.

All of a sudden our net profit in transfers last summer disappeared fast and all of a sudden i can see why we needed another £15m loan from Mike Ashley last season to keep our head above water.

So simply put going into this season i am quite confidant in saying that there was no money. Or at least there was very little money. And it looks like Rafa did get every penny. There just weren't all that many pennies.

[Nephy]

Even if all that were true, Ashley should still have stuck his fat paw in his pocket and bought us a few more players to protect his investment. Staying in the premier league is worth so much to us and him financially that it is fiscally irresponsible to gamble like this, not to mention the outright lies he told Rafa to keep him here. Rafa has been insulted, he will probably walk and we will be left with a shellshocked squad who will be engaged in a tough battle against relegation, led by whatever past it donkey of a manager with no self respect that Ashley can dig out of retirement. I have defended him in the past, but at this stage I feel like it's nothing to do with financial responsibility, and more like Ashley hates us and is wilfully ruining our club just because he can.

[ghostrider]

It's hard to tell if all of that is correct.
The installment issue seems a bit odd.

[toonlegend]

if he used the installment plan thing... it will be for his benefit, it must have been better tax wise for him to do that.

that is all

[toonlegend]

probably the same reason as he took 18 mill or so out of the club - paying himself back part of his loans -

then lent the club 30 mill from one of his subsidiary companies.


tax perks

[ashingtoon62]

Then again, I could have posted the exact opposite on FB..
Wheres JR when you need him?..