Newcastle United are set to announce record profits for the past financial year, despite continuing to languish among the Premier League also-rans. The club are expected to confirm they made more money than most clubs playing in the Champions League when they release their latest set of results, with sources indicating they could have made as much as £50 million. However, there are conflicting figures being banded around at the club, with one prominent figure insisting the profit was nearer to £30 million. The Daily Telegraph’s attempts to clarify the exact figure have been frustrated, although it has been confirmed a “significant profit” will be announced next week. To put things into perspective, Arsenal, who won the FA Cup, reached the knockout stage of the Champions League and finished fourth in the Premier League last season, six places higher than Newcastle, made a profit of roughly £11 million. It will be the fourth year in a row that Newcastle have announced an operating profit and it seems certain that the figures will be an improvement on those announced in 2012 when they made a profit of £13.3 million, numbers boosted by the £35 million sale of Andy Carroll to Liverpool. The impressive financial figures will be used to justify owner Mike Ashley’s continued presence at St James’ Park. Ashley inherited a club crippled by debt and covered losses of £140 million during his first three years at St James’ Park, although the majority of those were interest-free loans needed during their solitary season in the Championship. The disastrous relegation at the end of the 2008/9 season began with Kevin Keegan’s resignation following a falling out over the club’s transfer policy and was made worse by Ashley’s subsequent appointment of Joe Kinnear as manager and the owner’s repeated attempts to sell the club. Ashley, though, has transformed the business and while he has not presided over any success on the pitch, he deserves credit for the impact he has made on the club’s accounts. Supporters, though, are unlikely to be impressed and there will be increased pressure to reinvest the profits in the first-team squad when the transfer window opens in the summer. It remains to be seen whether Ashley is willing to do that, or whether he has used the profits to repay some of the money owed to him in the form of interest free loans. Although Ashley has had great success in streamlining the business, cutting costs, as well as buying players cheaply and selling them on for a large profit, Newcastle have only finished in the top eight once since he took control of the club in 2007. Newcastle have been short of competition for places in both defence and attack all season after failing to sign a top class centre-back and centre-forward last summer. Indeed, most supporters are unhappy that the club seems more interested in performing well in the accounts department than delivering a team that is capable of challenging for silverware and European qualification. ...
Yes, you're right about the exceptional costs, misread my own scribbles. Would the directors' remuneration not cover Faulkner and Russell, rather than Lerner and Faulkner? Minor points in any case.Did you see the PBSE note though? It says that the net cost of additions of new players after the 31 May 2014 was only £0.1m. This can't be right, surely? I know Lambert mainly brought in free transfers, but surely Sanchez and Gil were a few million each?
Quote from: Risso on March 07, 2015, 02:07:23 PMYes, you're right about the exceptional costs, misread my own scribbles. Would the directors' remuneration not cover Faulkner and Russell, rather than Lerner and Faulkner? Minor points in any case.Did you see the PBSE note though? It says that the net cost of additions of new players after the 31 May 2014 was only £0.1m. This can't be right, surely? I know Lambert mainly brought in free transfers, but surely Sanchez and Gil were a few million each?You're right, need to include Russell. Not sure if Randy pays himself a salary. As for PBSE, the accounts were signed off on 17 July - we didn't sign Sanchez until August and Gil until January so they wouldn't be included.
The change of owner clause will cover directors and senior management. I'd guess it's standard in business.
Beyond relegation, the next challenge is making sure the new contracts given to the likes of Delph don't result in massive wage increases which put us back in to the position we were in before.
Quote from: dave.woodhall on March 07, 2015, 02:29:07 PMThe change of owner clause will cover directors and senior management. I'd guess it's standard in business.It's the first time I've come across it in over 15 years of working with businesses. But who knows what's normal in the unique world of Premier League football!
Quote from: Ad@m on March 07, 2015, 02:47:37 PMQuote from: dave.woodhall on March 07, 2015, 02:29:07 PMThe change of owner clause will cover directors and senior management. I'd guess it's standard in business.It's the first time I've come across it in over 15 years of working with businesses. But who knows what's normal in the unique world of Premier League football!They are more common in the tech business although usually its an accelerated vesting of shares in that case rather than cash.The people with those clauses are ones who may either not make the transition to new ownership or people you want to give an incentive to make a change happen.
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Topic: Accounts Show Reduced Loss (Read 20952 times)
