Club to announce financial good news all round
March 6th, 2012 | 44 Comments |
According to an article in The Telegraph, Newcastle’s results for the 2010/2011 financial year – which are due out later this week – are set to show that the club is in good shape. The Telegraph goes on to suggest that they will show the club has made a profit for the first time since Mike Ashley bought it in 2007.
Apparently said results will not include player trading, although we should still have change from the £35m windfall we received from Liverpool for the sale of Andy Carroll.
In a separate article, The Telegraph goes on to say that the results will also confirm that we’ve reached an agreement with the tax office over ongoing disputes we’ve had with them.
The main dispute with HMRC has been about players’ ‘image rights’. This was a kind of tax avoidance scheme where payments to players were labelled as ‘image rights’ rather than ‘salaries’, which meant that such payments could be made to companies rather than individuals and thusly attract 26% corporation tax rather than 50% income tax. This is something that at lot of Premier League clubs have been up to and most have reached agreements with the tax office about it. Allegedly the settlement agreed by Newcastle has already been accounted for by a contingent liability put aside in the previous year’s accounts. (more…)
