Are Newcastle’s Finances Worse Than We Think?


More news form the local papers in Newcastle, and this afternoon’s Chronicle is saying there may be some interest in Dubai.

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It seems that the Newcastle Journal and Chronicle are doing exactly what we’d all hoped for, and doing some decent, factual reporting on the current Newcastle situation, and these two will be the best source, in terms of what’s true and not true in the press in the near future on what’s really going on at the club.

The Evening Chronicle has learned today that Keith Harris, the man trying to flog the club for a second time for Mike, is in Dubai talking to would-be investors. We did know he was out of the country on business today, and we have to hope there is now some interest shown there.

The good news for potential buyers is that Newcastle is up for sale for £100M from the £300M price of last September – the bad news is we are now a Championship club.

Harris, Chairman of investment bank Seymour Pierce, and with an excellent track record of selling football clubs,  is revisiting Gulf business tycoons who Ashley had contacted last September, to see if any may be interested at the now much reduced price of the famous club.

Unfortunately these types of deals are just not done quickly, whatever people might say, and we thought that Ashley’s wording – on Saturday night – saying he wants to sell the club quickly – was more political than anything else.

Why Ashley put the club up for sale in the middle of negotiations with Shearer, we believe may been initiated because of the financial situation at Newcastle, which could be worse than we think.

One option Mike had was to get the finances sorted out – get Shearer in as manager – and then put the club up for sale – and at least then he wouldn’t have put handcuffs on the club.

And there would not be too many would-be buyers object to Alan Shearer leading the club – we would have thought – although we  realize  he has no experience in management whatsoever.

Why didn’t he do that?

Because we believe they may be having significant trouble balancing the books, and although we usually don’t take much notice of “tips” we get from Newcastle  ” inside sources”  – we have heard that from 3 independent sources, one very reliable,  since Saturday night.

That doesn’t say it’s true of course, but it would at least be a good explanation for Mike’s recent actions.

Note – Please vote for NUBlog’s Player Of The Season – if you haven’t already done so – we’ll be announcing the results before the day is out.

Comments always welcome.



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35 comments so far

  • TheDan

    Jun 3, 2009 at 2:09 PM

    Comment #1

    Great news that he is in Dubai, I just hope this deal can be struck quickly!

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  • WELSHMAG

    Jun 3, 2009 at 2:10 PM

    Comment #2

    This whole saga is crazy!!

    If Mike cleared the debt then what’s the problem? he’ll have to take the hit of perhaps 30-40 million for loss of revenue? Right if we earned 100m last season and 72m was players wages, then get rid of some of the high earners and take the wage bill down to 50+ million. take away 50 million from loss of revenue so our revenue will be 50m+ and our wage bill will be there or abouts. Now take the relegation payment of 11m and some revenue from player sales Ie Martins, collocini, jonas, nolan = 20 million we then have 33 million to balance the books, hire shearer and his team and invest in the squad. I can’t see why we’d be in bad shape?

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  • reetpetite

    Jun 3, 2009 at 2:16 PM

    Comment #3

    tevez is a man city player. they have bid 14 mill for lescott and spurs are in for newcastles taylor and have bid 6 million which hasnt been turned down yet!!

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  • WELSHMAG

    Jun 3, 2009 at 2:22 PM

    Comment #4

    I’m getting sick to the back teeth of this club. Ashley is running us into the ground. you watch he’ll be claiming for administration soon.

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  • Whumpie

    Jun 3, 2009 at 2:24 PM

    Comment #5

    Ed – it’s not NUFC’s finances that are causing the problem, it’s Ashley’s.

    He has no liquid assets. £300m in shares is no use to anyone unless he can sell them, and doing that could cripple his own company. He sold his JJB shares, but that was a measly £4.5m.

    I believe he’s doing what he can for the club as well as for himself, but alas that ain’t much. It’s all about the bankers and that £40m facility being extended. Given that the bankers are barely lending to anyone who can’t prove they don’t need it, that is not an easy one to swing.

    Big Al said the end of the week, and I believe him. Until then, it looks like the task of re-shaping the squad is ongoing, with all but the actual signatures on contracts being sorted out.

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  • Stuart79

    Jun 3, 2009 at 2:27 PM

    Comment #6

    reetpetite // Jun 3, 2009 at 2:16 PM

    Man Utd have first refusal on Tevez and have until July 1st to take em up on it.

    The only thing is whether they will pay 32m

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  • batty

    Jun 3, 2009 at 2:27 PM

    Comment #7

    reetpetite // Jun 3, 2009 at 2:16 PM

    tevez is a man city player. they have bid 14 mill for lescott and spurs are in for newcastles taylor and have bid 6 million which hasnt been turned down yet!!
    <<<<u can have taylor for 6 mill ryan that is

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  • Doocey

    Jun 3, 2009 at 2:27 PM

    Comment #8

    Not many of us know what’s going on and I don’t think Ashley knows himself.

    As long as we sell quickly, which it think might happen considering were only selling for £90m-100m.

    Bill Gates please? lol

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  • Johno Toon

    Jun 3, 2009 at 2:29 PM

    Comment #9

    Whumpie i might be mistaen but i thought i read he made a profit of 4.5 mil

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  • Stuart79

    Jun 3, 2009 at 2:31 PM

    Comment #10

    Ashley pocketed £927 m when he floated his Sports Direct company.

    How can you spend that much money in two years????

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  • Whumpie

    Jun 3, 2009 at 2:35 PM

    Comment #11

    Wow. Ed may have a point about only taking notice of stuff in the local press and not nationals (and even then with large pile of salt) but others seem to have missed that bit…

    Hey, guys – did you know the word ‘gullible’ isn’t in the Oxford English Dictionary?

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  • tails

    Jun 3, 2009 at 2:35 PM

    Comment #12

    reetpetite // Jun 3, 2009 at 2:16 PM

    tevez is a man city player. they have bid 14 mill for lescott and spurs are in for newcastles taylor and have bid 6 million which hasnt been turned down yet!!

    clubs can bid whatever they want, selling clubs can choose to accept the bid however if a player does not want to move then they will not sign – remember man city going for kaka in january?

    steven taylor will be staying at newcastle FACT.

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  • Whumpie

    Jun 3, 2009 at 2:40 PM

    Comment #13

    Stuart – good question! I believe (and stand to be corrected) that what he did was buy most of his shares back, ending up with almost as many shares but with a load of cash left over.

    The Chronicle did a good article on it today. He’s lost a quarter-billion (and counting) on NUFC, 300m on a spread-bet on the banks, and Sports Direct shares have dropped by well over half. Add it up, and he’s lost around A MILLION A DAY since he bought the club.

    Fekkin’ ouch. Keep him away from sharp objects.

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  • Whumpie

    Jun 3, 2009 at 2:46 PM

    Comment #14

    There you all go again – “fact” this and “truth” that.

    It’s all just paper-selling. Have you read a direct quote from Taylor? Nope. So it’s utter tripe and doesn’t deserve reading.

    For chrissakes, how many rumours have you read about transfers that ever turned out to be true?? LEARN!!!

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  • cicero

    Jun 3, 2009 at 2:54 PM

    Comment #15

    We are at the bank looking to extend our overdraft facility to the tune of £40m this is to allow us to trade throughout the year. Money from outgoing transfers won’t come in in a big lump but rather fazed over a number of seasons so we need the overdraft facility to operate. As Whumpie rightly points out Ashley hasn’t got the cash to support NUFC; he’s refocusing on SportsDirect.

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  • cicero

    Jun 3, 2009 at 2:55 PM

    Comment #16

    Soz. Phased

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  • Toon Graeme

    Jun 3, 2009 at 2:58 PM

    Comment #17

    Tails –

    are you THE steven taylor???

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  • ToonMarine

    Jun 3, 2009 at 2:59 PM

    Comment #18

    Reet, Where’s that come from? Can’t find that anywhere on the net apart from hughes confirming if he became avail he would be interested in Tevez.
    Taylor may still be young enough to stay for another year or 2 to see where we go from this disatster but realsitically, even though he is prone to the odd gaff or 3 his potential is massive and with good top class coaching he could become a england regular.

    We should be looking at young starlets who are breaking onto the scene but chances are limited due to massive amounts being spent on supposedly the best around. Daniel Sturridge, Man |City, 19, fast, strong, good in front of goal, and read he is out of contract, Man City have offered him a deal and Chelski interest supposedly, but why go there and not stay at city. Drop a league for a season or 2 and get first team games and shine if talented enough. If we blow going back up and they are talented enough the big guns will come back a calling and your in a better position to neg terms.

    Just a thought……..

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  • reetpetite

    Jun 3, 2009 at 3:10 PM

    Comment #19

    TAILS- unless you know someone at the club how can you have the cheek to say that its FACT that taylor will remain at newcastle. I dont want him and i dont rate him but the facts are spurs have made a bid which has not been rejected.

    stuart79- you can quote me on it and call me a liar at the end of the week. Tevez has agreed to go there. This is from the same person that told me barry to city was agreed in principle over a week ago.

    Apparently you can actually go to the bookies and bet where players will play next season. I wasnt aware of this till this morning when my mate asked why i didnt lump on the barry transfer. Call this an early christmas present and lump on tevez to city. Its only 3/1 at the moment but the bookies will close the book by tomorrow.

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  • ian

    Jun 3, 2009 at 3:17 PM

    Comment #20

    Whumpie he also bought back shares in his old business when the share price dropped, I think I am right in saying he could take it all over again, if I was him I would get rid of this club as quickly as possible, buy the rest of the shares in his business and stick to selling shirts and trainers.

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  • WELSHMAG

    Jun 3, 2009 at 3:20 PM

    Comment #21

    You don’t want steven taylor? Man that guy is going to be REALLY important for us next season. His goals, his Strength and his passion are irreplacable if you ask me.

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  • ToonMarine

    Jun 3, 2009 at 3:25 PM

    Comment #22

    Welshmag- agree with you. To many footballers lack one major thing nowadays.

    HEART

    Taylor has this in abundance plus talent, if he delivers.

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  • Rangerman

    Jun 3, 2009 at 3:33 PM

    Comment #23

    The clubs finances have been worse than most think for some time now and I’ve lost count of the times I’ve read that season ticket money has gone straight into Ashley’s back pocket by fans that don’t really have a clue what they are on about.

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  • reetpetite

    Jun 3, 2009 at 3:34 PM

    Comment #24

    toonmarine- sorry, missed your earlier post. that info has come from a couple of friends who work in the media and cover man city in particular. They both know lots of people within the club.

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  • Rangerman

    Jun 3, 2009 at 3:34 PM

    Comment #25

    Steven Taylor is average, good luck to him if he moves on but he’s hardly irreplaceable.

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  • Nick 69

    Jun 3, 2009 at 3:36 PM

    Comment #26

    unless steven taylor is forced out of the door he is going nowhere!!

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  • Rangerman

    Jun 3, 2009 at 3:36 PM

    Comment #27

    reetpetite – You mean you read it on one of the Spurs boards with their ever knowledgeable “in the knows” ?

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  • Nick 69

    Jun 3, 2009 at 3:40 PM

    Comment #28

    steven taylor will be a key player for us next season in the championship and it would be quite hard to replace him with someone with the same quality from the championship

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  • reetpetite

    Jun 3, 2009 at 3:44 PM

    Comment #29

    steven taylor is rubbish but it looks as though ashley is willing to cash in. He is the sort of player harry could improve but he will only ever be back up to our current central defenders.

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  • Nick 69

    Jun 3, 2009 at 3:57 PM

    Comment #30

    steven taylor wont be going to spurs so he wont be back up at all

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  • Tom_Toon

    Jun 3, 2009 at 4:39 PM

    Comment #31

    bennytoon manaufacturing more rumours from his pea-brain again.

    No rumour that wasnt baltatly obvious for anyone with an IQ bigger than a peanut didn’t know, came off.

    As for the finances, MA is wiping the debt when he sells.

    The wage bit and working capital is the problem, no the debt etc.

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  • Tom_Toon

    Jun 3, 2009 at 4:43 PM

    Comment #32

    Also bennytoon you are not a man, you dont stand by your word, you said you would leave if we beat spurs at sjp, we did. You also said you would leve if we were relegated, we were and you haven’t.

    Ed, ban this cont.

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  • Robbanufc

    Jun 3, 2009 at 8:50 PM

    Comment #33

    Welshmag, to think we’re at £30-40m loss in revenue is just wrong. I’d say we’re probobly at around 60-80m, having looked at the finance records from 2007/2008. Our wage is at 74m, + other costs, which were at 125m in 2008. This have most likely have gone up from 2008 to 2009. And our income was at 101m in 2008, which gave is a loss in revenue at 24m.

    We’ve lost a major income due to our league position, and being relegated. and the wage costs are higher (we’ve signed more expensive players since 2008)

    To think our finances would be that easy to fix, would be ignorant.

    We have to get rid of half our wage budget, and get in enough capable players for next season, to fight for our way up to the Premiership!

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  • Micky Toon

    Jun 4, 2009 at 9:28 AM

    Comment #34

    I was starting to believe bennys post, but then I got to the bit where he said they were willing to pay £14m for Lescott.

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  • Tom_Toon

    Jun 4, 2009 at 12:17 PM

    Comment #35

    ###########

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