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Newcastle reveal cost of relegation by announcing £33.5m losses from year in the Championship

 

Newcastle United have announced losses of £33.5million from their season in the Championship.

Relegation from the Barclays Premier League also resulted in the loss of 4,000 season ticket holders and a 39 per cent reduction in turnover from £86.1m to £52.4m. The overall loss after player trading was £17.1m.

 

Despite relegation, and the fall in actual season ticket sales, more than one million fans still visited St James' Park last season as Newcastle stormed to the Championship title, with an average league attendance of 43,388, which was the fourth highest in England.

 

Newcastle also paid more than £47m in wages in the Championship, even after losing big earners like Michael Owen, Damien Duff and Obafemi Martins - three times the amount paid by West Bromwich Albion who were also promoted.

 

The overall level of debt between the start and end of the financial year remained at £150m. However the level of bank borrowings fell by £25m and this was replaced by a £25m increase in loans from the club's owner, Mike Ashley.

 

All loans from Ashley, which totalled £139.8m at the year-end, have been and remain interest free. In addition, the owner advanced a further £13m to the club who hope to break even this year, even without the addition of the Andy Carroll transfer money.

 

Managing director Derek Llambias said: 'Mike Ashley's money has kept this club buoyant. Quite honestly Newcastle United would not be here without him, its as simple as that.

 

'He has never taken a penny out of the football club but he knows what he has to put in every year and he is keen to grow it. He knows where we want to be and where we should be in four or five years time.

 

'But we are a very tight unit here and a much better unit than we have been previously. At the end of the day Mike is a football fan, a Newcastle fan and he loves coming here.

 

'We are starting to get the stability we need into the football club both financially and within the squad. That stability is one of our most important goals.

 

'That would give us the security that the club and the playing side needs. We need to get that stability back here, including on the managerial side.

 

'Our vision for the club is to finish 10th or above every year, year after year. That is our target, we want to be challenging for Europe every single year.'

 

http://www.dailymail.co.uk/sport/football/...o=feeds-newsxml

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Managing director Derek Llambias said: 'Mike Ashley's money has kept this club buoyant. Quite honestly Newcastle United would not be here without him, its as simple as that.

 

No sentence boils my piss more than this. Without Ashley we'd never have dropped into the Championship in the first place so Dekka can shove this theory 3 miles up his own arsehole. It doesn't wash with me.

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'We are starting to get the stability we need into the football club both financially and within the squad. That stability is one of our most important goals.'

 

That made me laugh considering the sacking of the manager and sale of the only man scoring goals (minus Nolan).

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That made me laugh considering the sacking of the manager and sale of the only man scoring goals (minus Nolan).

 

Best has 6 league goals, Shola and Barton have 4, Lovenkrands 3, and a few on 2.

 

Those in glass houses anyway...

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We owe them everything, bigtime, no mistaking.

 

Each and every one of us should fall at their feet and offer our gawping grateful mouths to their crapulent flaccid cocks, on sight.

 

I pray every night that nothing absolutely tragic and deeply disturbing happens to either of them, as if it did the institution that is Newcastle United would crumble to dust and all we would have is the anguished memory of these two wonderful benevolent men, these saviours of our people, these two brave paragons of honour, principle and competence.

 

These men must be worshipped for the pious, trustworthy and philanthropic Gods that they are.

 

:lol:

Edited by trophyshy
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Fucking hell I hate that prick llambias

 

he thinks highly of you and your posts.

 

 

Not as highly as he thinks of the clowns that slag him then pay for 3 years worth of season tickets :lol:

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'We are starting to get the stability we need into the football club both financially and within the squad. That stability is one of our most important goals.'

 

That made me laugh considering the sacking of the manager and sale of the only man scoring goals (minus Nolan).

You may have never washed but sometimes you post some sense.

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Managing director Derek Llambias said: 'Mike Ashley's money has kept this club buoyant. Quite honestly Newcastle United would not be here without him, its as simple as that.

 

No sentence boils my piss more than this. Without Ashley we'd never have dropped into the Championship in the first place so Dekka can shove this theory 3 miles up his own arsehole. It doesn't wash with me.

 

 

It's probably true though, we made a bigger loss than this in 2007 of £34.2 Mill then came the credit debacle, I can't see how we could have survived without someone with deep pockets.

 

If not "gone broke" we'd have been seriously skint and let's face it we'd been pretty crap for years, even the 7th placed finish was due to a bit of a late season run from a position of some danger. Being totally skint, reliant on credit (when there was none to be had) and shite, was not a recipe for a resurgence.

 

Edit - this is NOT a pro Ashley post.

Edited by Toonpack
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Managing director Derek Llambias said: 'Mike Ashley's money has kept this club buoyant. Quite honestly Newcastle United would not be here without him, its as simple as that.

 

No sentence boils my piss more than this. Without Ashley we'd never have dropped into the Championship in the first place so Dekka can shove this theory 3 miles up his own arsehole. It doesn't wash with me.

 

Does my head in this. Every single time we hear something about the club its "Mike has done this and done that and we'd be doomed without him". FUCK OFF!

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Managing director Derek Llambias said: 'Mike Ashley's money has kept this club buoyant. Quite honestly Newcastle United would not be here without him, its as simple as that.

 

No sentence boils my piss more than this. Without Ashley we'd never have dropped into the Championship in the first place so Dekka can shove this theory 3 miles up his own arsehole. It doesn't wash with me.

 

 

It's probably true though, we made a bigger loss than this in 2007 of £34.2 Mill then came the credit debacle, I can't see how we could have survived without someone with deep pockets.

 

If not "gone broke" we'd have been seriously skint and let's face it we'd been pretty crap for years, even the 7th placed finish was due to a bit of a late season run from a position of some danger. Being totally skint, reliant on credit (when there was none to be had) and shite, was not a recipe for a resurgence.

 

Edit - this is NOT a pro Ashley post.

 

I agree, and the essence of the statement is likely fairly accurate, though I dont think we would have "not been here anymore" as I think someone would have came in and bought the club anyway. It's more the banging on about what he has done again and again as if it is to turn the fans on his side again.

 

I think it comes down to Shepherd being "labour" and spending his way out of trouble and Mike being Tory :lol:

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Managing director Derek Llambias said: 'Mike Ashley's money has kept this club buoyant. Quite honestly Newcastle United would not be here without him, its as simple as that.

 

No sentence boils my piss more than this. Without Ashley we'd never have dropped into the Championship in the first place so Dekka can shove this theory 3 miles up his own arsehole. It doesn't wash with me.

What fucks me off about the comment is the fact that Ashley had put in all said well over £200m of his own money in to buying and loaning money to the club, is Llambias such a wanker that he can't see it was in FMA's best interests to bring the club back up, to protect his investment. As if he'd thrown £200m away :lol: What an arsehole.

 

What the results do show is that we're an amazing club. Think about Rangers and Celtic's claim they'd be like Real Madrid's "with the English TV money", well we didn't have the Premiership TV money last season, they both had European football, yet our turnover was greater than their's. What conclusions can you draw from that??????

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Managing director Derek Llambias said: 'Mike Ashley's money has kept this club buoyant. Quite honestly Newcastle United would not be here without him, its as simple as that.

 

No sentence boils my piss more than this. Without Ashley we'd never have dropped into the Championship in the first place so Dekka can shove this theory 3 miles up his own arsehole. It doesn't wash with me.

 

 

It's probably true though, we made a bigger loss than this in 2007 of £34.2 Mill then came the credit debacle, I can't see how we could have survived without someone with deep pockets.

 

If not "gone broke" we'd have been seriously skint and let's face it we'd been pretty crap for years, even the 7th placed finish was due to a bit of a late season run from a position of some danger. Being totally skint, reliant on credit (when there was none to be had) and shite, was not a recipe for a resurgence.

 

Edit - this is NOT a pro Ashley post.

 

There is no fucking way in god's green earth that we'd have gone out of business without Mike Ashley. As JawD points out, someone else would have bought us. The Newcastle United brand is worth too much. Same goes for any top flight club tbh.

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The overall loss for the year after player trading was £17.1 million, compared to £15.2 million the year before.

 

That's a key stat I would say. On the face of it looking at the bottom line only the fall to the Championship didn't cost us that much as we were already losing that amount of money. We've shed some of our overpaid watses of space and have a more realistic wage bill if we can increase our turnover. This should go without saying as the increase in TV and Media revenue should be more than £20m.

 

2010 (Championship)

Turnover: £52.4m

Wages: £47.5m (90.6% of turnover)

Operating Costs: £74.4m

TV & Media: £16m

Loss: £33.5m

Profit from players: £16.4m

Overall Loss: £17.1m

 

2009 (Premier League)

Turnover: £86.1m

Wages: £71.1m (82.6% of turnover)

Operating Costs: £98m

TV & Media: £37.6m

Keegan Compensation: £5.3m

Loss: £37.7m

Profit from players: ??

Overall Loss: £15.2m

 

2008 (Premier League)

Income: £99m

Wages: £73m

Hall & Shepherd Compensation: £2.1m

Allardyce Compensation: £4.7m

Loss: £31.3m

Profit from players: £10.8m

Overall Loss: £20.5m

 

 

Should be easier to compile a more accurate set of accounts for these years..

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The latest figures do not reflect Newcastle's return to the Premier League at the end of last season, with promotion worth anything up to £60m to successful clubs.

 

Nor do the accounts include Andy Carroll's £35m sale to Liverpool in January.

 

Funny that!

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The latest figures do not reflect Newcastle's return to the Premier League at the end of last season, with promotion worth anything up to £60m to successful clubs.

 

Nor do the accounts include Andy Carroll's £35m sale to Liverpool in January.

 

Funny that!

Well not really considering it is for the 2009/2010 season, and the £60m Premiership revenues plus the £35 will be part of 2010/2011's figures.

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Simon birds take....

 

 

Mike Ashley has spent a staggering £285.8million on Newcastle United it can be revealed today - and he wants the Geordies to start challenging for Europe and to "always be in the top 10 of the Premier League".

 

Newcastle issued financial records detailing how they survived being relegated, and their plans for the future, yesterday. In an amazing turnaround, the club will break even this season - even without the £35m Andy Carroll windfall.

 

Cost-cutting measures at the club have even included switching off lights and escalators at St James' Park, which has helped save £250k a year, with that cash being ploughed back in to pay for under-soil heating at the training ground. Even the training ground's £40k water bill is being cut thanks to a new bore-hole.

 

MD Derek Llambias brought good news for fans as he announced an improved financial situation which has seen the wage bill slashed from £71m to £47m.

 

 

 

 

Mike Ashley has spent a staggering £285.8million on Newcastle United it can be revealed today - and he wants the Geordies to start challenging for Europe and to "always be in the top 10 of the Premier League".

 

Newcastle issued financial records detailing how they survived being relegated, and their plans for the future, yesterday. In an amazing turnaround, the club will break even this season - even without the £35m Andy Carroll windfall.

 

Cost-cutting measures at the club have even included switching off lights and escalators at St James' Park, which has helped save £250k a year, with that cash being ploughed back in to pay for under-soil heating at the training ground. Even the training ground's £40k water bill is being cut thanks to a new bore-hole.

 

MD Derek Llambias brought good news for fans as he announced an improved financial situation which has seen the wage bill slashed from £71m to £47m.

 

 

However, the club are still going to revisit the controversial issue of raising millions by selling naming rights to St James' Park to a major corporation.

 

A chunk of the Carroll fee, which manager Alan Pardew was promised for his transfer fund, has already been spent on the cost of Cheik Tiote's new six-year deal. But cash raised from player departures this summer WILL be added to Pardew's spending pot.

 

Ashley had to plough another £42m in loans into Newcastle to keep it afloat and in shape for their successful Championship promotion challenge last season.

 

The amazing financial drain that Newcastle had become for Ashley will be shown in club accounts published today up to June 2010 - the season United spent in the Championship.

 

Ashley, spent £133m buying Newcastle and since then has pumped in £152.8m in interest-free loans from his estimated £1billion personal fortune.

 

After relegation in May 2009, turnover fell from £86.1m to £52.4m in the Championship, with TV revenue tumbling from £37.6m to £16m.

 

Newcastle recorded a loss of £33.5m. In the same year in the top flight, West Ham lost £21m, Bolton £35m and Sunderland £27m, meaning this season's break-even financial position is relatively healthy.

 

Ashley is aiming for a time when the club pays for itself without needing regular loans from him. The plan is for a £10million profit in a year or two, which will be reinvested to buy players.

 

Season-ticket sales fell 4,000 after relegation and is down to 29,000, from a 38,000 peak. In five years' time, the club wants a return to 40,000 with deals rewarding loyalty.

 

There has been no serious interest from any potential new owner. Anyone asking for talks is told to buy a £50k-a-season corporate box for five years to prove their commitment. No-one has.

 

Llambias said: "Our vision for the club is to finish 10th or above every year - year after year. That is our target, we want to be challenging for Europe every single year.

 

"Mike Ashley's money has kept this club buoyant. Quite honestly, Newcastle United would not be here without him. It's as simple as that. He has never taken a penny out of the football club but he knows what he has to put in every year and is keen to grow it.

 

"He knows where we want to be and where we should be in four or five years. But we are a very tight unit here and a much better unit than we have been previously. At the end of the day Mike is a football fan - a Newcastle fan - and he loves coming here.

 

"We are starting to get the stability we need into the football club, both financially and within the squad. That stability is one of our most important goals.

 

"That would give us the security that the club and the playing side needs. We need to get that stability back here, including on the managerial side."

 

Llambias revealed Ashley had to pay £37m in outstanding transfer fees after buying United.

 

The Geordies get £2m from shirt sponsorship, but Liverpool's income from the same source is 10 times that amount.

 

That is why Newcastle are still talking to partners about naming rights for St James' Park - which is currently officially known as sportsdirect.com@St James' Park.

 

Plans for a big screen at St James' are on hold. It would restrict the view from 5,000 seats and cost £1.2m, but they do have planning permission.

 

Director and staff pay has been frozen for the last two years.

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Basically the club has been losing money and had too high a wages/turnover ratio for years. The marketplace loans of Shepherd have been replaced by the free loans of Ashley. From a timing point on that facet alone things have improved on a purely financial pov.

 

Both regimes used/use the "club would have disappeared" line which is absolute bullshit though Shepherd + credit crunch would have been dodgier.

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'He has never taken a penny out of the football club"

 

Because he's running at a loss.

 

He's not added any value to the club since the day he bought it.

 

He couldn't take a penny of profit if he sold.

 

It's like buying a classic car, driving it into a wall at 40mph, giving it a paintjob and bragging at the owners club meeting about what you've spent on upkeep.

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Basically the club has been losing money and had too high a wages/turnover ratio for years. The marketplace loans of Shepherd have been replaced by the free loans of Ashley. From a timing point on that facet alone things have improved on a purely financial pov.

 

Both regimes used/use the "club would have disappeared" line which is absolute bullshit though Shepherd + credit crunch would have been dodgier.

 

The majority of club debt was the amortising secured loan which built L7- yes the loan cost interest payments but increased attendances generated wnough revenue to cover that.

 

Ashley's shareholder loans are a combination of all sorts but now predominantly represent funding cashflow rather than capital investment.

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Basically the club has been losing money and had too high a wages/turnover ratio for years. The marketplace loans of Shepherd have been replaced by the free loans of Ashley. From a timing point on that facet alone things have improved on a purely financial pov.

 

Both regimes used/use the "club would have disappeared" line which is absolute bullshit though Shepherd + credit crunch would have been dodgier.

 

The majority of club debt was the amortising secured loan which built L7- yes the loan cost interest payments but increased attendances generated wnough revenue to cover that.

 

Ashley's shareholder loans are a combination of all sorts but now predominantly represent funding cashflow rather than capital investment.

 

I get the secured loan part but 45m out of 110m isn't the majority though. I also don't think an avoided small loss in crowd size would have covered that cash flow. The outstanding transfer fees would have been a worry.

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