Ashley Had Every Right To Be Concerned About Newcastle’s Finances

Mike Ashley took a hammering a year last January when he refused to bring in players like Andros Townsend and James McCarthy that would have ensured promotion.

That was the financial year when we were in the Championship, and fans have just learned Newcastle lost a massive £90M.

And that could well trigger an EFL Financial Fair Play inquiry into Newcastle’s finances because we lost so much money.

There are consequences financially, and we will still be feeling the pinch (just) a little this summer.

But Newcastle will have a decent current financial year which will end on June 30th, and we will get a massive £123M from the Premier League for finishing in 10th place.

Mike Ashley and Lee Charnley – they look worried

Mike Ashley has come in for some withering criticism over the last 18 months for not supporting Rafa in the transfer windows, but this explains to a large extent why he was so cautious.

And you have to give it to Rafa and the players for what they have done in the last couple of years with little money to spend.

They have done magnificently including this season in finishing in the top half of the Premier League.

Think of the pressure Rafa was under in the Championship to get us promoted immediately – and he took it in his stride – he’s a magnificent manager.

Rafa will get enough money to spend this summer in comparative terms.

The figures rumored are that he will get at least £50M plus anything he can get from selling players which could add another £40M to the transfer kitty.

But now we know just how strained financially Newcastle have been over the last couple of seasons.

Last year’s events prove what a financial disaster it is for a club to be relegated from the Premier League.

The club has done extremely well to get where we are at the moment and from now on it should be plain sailing.

That’s the good news.

Comments welcome.

13 comments so far

  • DubaiMicky

    May 19, 2018 at 10:27 AM

    Comment #1

    Clubs relegated from the Premier League are permitted to make losses of up to £35m per annum in respect of the time they spent in the top flight. So 6 years x £35m, not even half, hence no FFP issues.

  • AlfiePotter

    May 19, 2018 at 10:35 AM

    Comment #2

    90m on paper …. 25m in real cash? 10m overdraft and 15m tax free loan from the owner.

    Yes it explains not having any cash in January, but these accounts are loaded to the max to be as bad as they can legally be.

    Ashley runs in the prem at break even

  • kimbo

    May 19, 2018 at 10:38 AM

    Comment #3

    Still believe some creative accountancy been carried out. Increase in wages seems strange but let’s wait and see what has really been done.

  • Beardsleys Love Child

    May 19, 2018 at 10:40 AM

    Comment #4

    HAHAHA 50m my Ar$e..we all know how transfer windows under Ashley end. Minimum requirement STRIKER, NUMBER 10, CM, LW DUBRAVKA…Six signings. Short window…cue excuses come August 9th. *this team has been described as a championship team which i find dirogatory* – Mike Ashley… translation – we are well equiped , give him two signings penfold

  • lesh

    May 19, 2018 at 10:44 AM

    Comment #5

    Given Rafa’s reported discontent over transfer budgets and supposed broken promises, one must wonder whether the breakdowns, the rifts between him and Ashley might have been avoided if Ashley had communicated his concerns to Rafa? Had he put the whole thing into context, the acrimony may have been avoided

  • kev

    May 19, 2018 at 10:52 AM

    Comment #6

    This reminds me of the time that I personally bankrupted my own company through poor business acumen and investments so I decided to blame my family and keep them in debt for the next decade… ?

  • Jib

    May 19, 2018 at 10:53 AM

    Comment #7

    There are about 3 red tops reporting
    that NUFC may have FFP issues.
    If you can find out the real SP surely
    lazy blinking journalists can !!!!

  • DubaiMicky

    May 19, 2018 at 11:08 AM

    Comment #8

    You’d have thought so Jib.

  • ramboreilly

    May 19, 2018 at 11:12 AM

    Comment #9

    I think the accounts are loaded.It doesn’t take into account the money owed to us by other clubs.Liverpool,Spurs,Palace etc.We pay upfront for our players but receive money over 4 year periods.So the accounts will always look worse than they actually are.

  • magicmac54

    May 19, 2018 at 11:28 AM

    Comment #10

    Anybody who believes these figures is so naive, Ashley is a crook and a con man, can you not see the books have been cooked and loaded, its all designed as an excuse to spend as little money as possible in this coming transfer window, as the saying goes you can fool some of the people some of the time, but you cant fool all of the people all of the time, i rest my case. HWTL.

  • sickandtired

    May 19, 2018 at 11:51 AM

    Comment #11

    Over £40 million loss according to the accounts, despite Ashley (through SJH) loaning £33 million – and immediately repaying himself £18 million.

    Ok, so where did the money come from to pay the alleged +30% wage bill? Does the club now owe Ashley £144 million AND have an overdraft of over £40 miilion? Money doesn’t grow on trees so if the accounts are correct (lol!) fatty has been borrowing the operating funds from somewhere else.

    So, if the club is also really for sale, the price has gone up not because of profitability, but simply to cover more debt while allowing fatty the same level of profit he expects – some 70-80 million.

  • jesperfuglsang - capt'n awesome of the lemon crew

    May 19, 2018 at 12:27 PM

    Comment #12

    It is a financial disaster to be relegated…so much so that you would have thought any person owning a football club that have tried that ones would never ever put a club through that again…

    …one would have thought that…right Big Mike?

  • jesperfuglsang - capt'n awesome of the lemon crew

    May 19, 2018 at 12:28 PM

    Comment #13

    You really cannot emphasis with him or understand his predicament when it’s self inflicted…twice!


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