There’s no doubt that Newcastle’s financial results for the last year, which were released last night are very good, and there’s not too many clubs make £9.9M, but that’s because the big clubs are spending that money on good players.
Mike Ashley – running the club well – if only on the financial side
Newcastle’s financial position – if not the position in the Premier League – is improving quickly, and Newcastle look to be a well run club, at least on the financial side of things.
And the next financial year should be a stellar year in terms of both profit and revenue as we detailed earlier today.
Newcastle still owe Mike Ashley £129M, and there seems no hurry to pay off that debt but of course that adds to the cost of the club for a potential buyer.
Of course other owners have given huge loans to their clubs, and then simply excused the loans – but we don’t expect for one minute that Mike Ashley will do that – and in any case £129M is a lot of money.
But maybe if the club started to pay off the loan in the coming years, when profits are expected to surge, then the cost of the club will go down and Newcastle may attract some buyers.
And now would be a decent time to buy Newcastle, with this financial year, which ends on June 30th likely to be stellar in terms of both revenue and profits.
And remember the first thing any potential buyer does is due diligence, which is basically to scour the financial books, to see what state the club is in – and from what we tell Newcastle’s financial position is very good – and that alone could attract buyers.
And to think Newcastle will be getting almost twice the money from the Premier League we received last year – and it’s expected to be around £80M.
If a buyer did come out of the blue and buy the club, there would be a lot of the club’s money to spend on new players this summer, at the end of the current financial year which ends this June 30th..
We’ll just have to see if that doesn’t happen, just how much Mike Ashley gives Alan Pardew to spend this summer – although Alan said earlier in the week it should be a nice piece of change.
What we really need is a good Director of Football, a football man, who’s job it is to build the side into a top four side in England, and that’s possible if Mike would give him the profits every year, and he can spend that on good players.
What do you think?
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