Archive for tag: Newcastle United finances.

Newcastle United and one of the greatest blunders in football history

January 8th, 2015 | 64 Comments |

Bobby Robson and Kevin Keegan
Before it all went wrong.
There is a tide in the affairs of men.
Which, taken at the flood, leads on to fortune;
Omitted, all the voyage of their life
Is bound in shallows and in miseries.
On such a full sea are we now afloat,
And we must take the current when it serves,
Or lose our ventures.

Said Brutus in Shakespeare’s Julius Caesar, and so it was with Newcastle United when they missed football’s greatest tide, leaving themselves bound in the shallows and miseries of mediocrity ever since.

To elaborate, in 1997-8, in the early stages of the biggest ever growth in football finances, Newcastle United were the fifth biggest football club in the world according to the Deloitte and Touche ‘Football Money League’ for that season. To make it seem even more unreal when we look at Newcastle United today, they were slightly ahead of Louis van Gaal and Bobby Robson’s Barcelona, who the Magpies had beaten 3-2 in the Champions League at St James’ Park that season. They also made the FA Cup final, after finishing as runners up in the Premier League for the second year in a row and signing the world’s most expensive player in the previous season. However the signs were already there, they also finished thirteenth in the League that season, the club lost some great players, Les Ferdinand, David Ginola, Faustino Asprilla and certainly not least, a 36year old Peter Beardsley. Kenny Dalglish was then sacked early into the next season and things were to get even worse under his successor, Ruud Gullit. (more…)

Pardew once again talks about “Ashley’s Budget”

April 19th, 2012 | 53 Comments |

Alan Pardew interview about the Newcastle United transfer budget.
Pardew has clarity on the budget
Newcastle United manager Alan Pardew has once again being talking about the club’s budget.

Alan Pardew has gone on record again to say that he understands the budget he’s operating under at Newcastle. In an interview which broadly echoes one he made earlier this week Pardew said:

I do think that the clarity of the budget is important. Some fans may not be entirely happy with the amount we have to spend, but at least they know the whole picture.

When you look at the world economy and where football is at the moment, we are seeing some really tough times. We have seen examples of Portsmouth and Rangers in Scotland that show if you over-stretch, you are going to find yourself in serious trouble and you are putting the club’s future at risk.

At Newcastle, we have got a good foundation and a good financial model, and now the question is whether we can bring success within that model.

That’s the challenge that I accepted when I joined the club, and so far we are doing well and can hopefully continue to grow as we go along.(more…)

Toon finances: is Ashley really our saviour?

August 11th, 2011 | 28 Comments |

Newcastle United's financial situation.
Are they saving the club?
A look at Newcastle United’s financial situation to see what Mike Ashley really has done for the club.

One of the things we often hear is that, even if he has no other redeeming features, at least Mike Ashley is sorting out the finances at Newcastle United.

It has become something of a mantra for the pro-Ashley fans but let’s have a look at the figures and see if that mantra is justified.

Before I do that though, I need to disclaim a few things. I’m not a financial expert. I do know a bit about running the books for Limited Companies but obviously nothing the size and scale of Newcastle United.

Additionally, the figures I’m quoting below are from financial reports filed at Companies House which I paid to access via a popular online supplier, so I’m merely trusting that they’re correct.

A First Look At The Books

The following table of figures is taken from the last five years of reports filed by Newcastle United Ltd, which are currently complete up to the 09/10 financial year (Newcastle run July – June for their financial years):

  05/06 06/07 07/08 08/09 09/10
Net Assets 16.8m -£12.9m -£33.3m -£51.4m -£68.5m
Net Worth -31.4m -£54.8m -£73.6m -£95.8m -£98.9m
Operating Profits -£00.6m -£25.9m -£24.7m -£37.6m -£33.4m
Pre-Tax Profits -£12.0m -£34.1m -£20.3m -£15.1m -£17.0m
Book Value 16.7m -£12.9m -£33.3m -£51.4m -£68.5m


Is it time for the unpredictable Mr Ashley to speak to us?

July 19th, 2011 | 48 Comments |

Is it time for Newcastle United owner Mike Ashley to speak to the fans?
C'mon Mike - what's the deal?
What is Newcastle United owner Mike Ashley up to and is it time for him to let us in on his plans?

Mike Ashley still divides opinion at Newcastle. Some people like him and think he’s good for the club and others hate him and would have him hogtied, marched to the Bigg Market and placed in the stocks to be pelted with projectiles of choice. Then there are plenty of shades of grey in the middle of that – people who either think some of his ideas are bad and some are okay, or folk that are deferring opinion for now.

One thing Ashley rarely is, though, is predictable. Who, at the beginning of Ashley’s term of office, would have predicted he’d usher in the return of Keegan, precipitate Keegan’s unfair dismissal, put the club up for sale twice, receive accusations of being both cockney and Mafioso, appoint Chris Hughton as manager, sack Chris Hughton for no obvious reason, appoint Alan Shearer as manager, dig up Alan Pardew and make him manager, replace Chris Mort with a man of the owlish persuasion, oversee the team’s relegation, oversee the team’s subsequent promotion, rename St James’ Park to an email address and the plethora of other things he does that keep us guessing?

He’s certainly caused a fair bit of unrest in his time and I understand the sales of bedsheets in Tyneside shops have never been better. (more…)

Mike Ashley’s transfer spending currently stands at -£45.7 million.

July 18th, 2011 | 106 Comments |

Newcastle United's transfer warchest yesterday.
Newcastle United's transfer warchest yesterday.
On looking at Mike Ashley’s transfer spending in the last four seasons, it appears that in total, the club’s overall spending on transfer fees have been by far the lowest in the Premiership, with the club showing a profit of approximately £45,700,000 in the club’s transfer dealings for the 08/09, 09/10, 10/11 and the current 2011/12 seasons (so far).

Just to qualify the above, this figure does not include a series of diasastrous signings made under the previous regime of Freddy Shepherd, Douglas Hall and Sam Allardyce, some of which, though technically finalised shortly after Ashley gained control of the club, but were made under the previous administration. These include players such as Geremi, Alan Smith and Cacapa. However, if all the signings made in that season were included whether they were made under Ashley or the previous owners, spending would still show a deficit of approximately -£41.05 million from the the 07/08 season to the present day, as the clubs spending in that season amounted to approximately £7.65 million. It should also be mentioned that the club’s overall wage costs have also fallen dramatically since Ashley assumed ownership of the club, though in defence of this seeming lack of expenditure on the club’s playing staff, a Mr A.Pardew had this to say on the club’s transfer dealings: (more…)