Newcastle United 2012/13 Financial Figures

[Goat]

9.9 million profit, and that doesn't even include shirt and merchandise sales which go under the sports direct trading company. Ashley the prick is making so much money out of us it's obscene.

It doesn't say that this profit has been taken out of the club.

A lot of people do seem to forget that Ashley invested £130million which has never been paid back to him. He's still in a major loss throughout all the years since he bought the club, and a long way off ever recouping his money.

I honestly don't blame him at all for wanting to recoup it. However, what I don't like is that he bought the club in the first place. Football clubs with any ambition are only really suitable for owners who want to sink cash into it as part of their pet project. If Ashley isn't willing to do that, then I'd rather he sold the club to an owner who will.

[Cal]

There are questions answered regarding the debt, SD advertising and money staying in the club in the questions section of the fans forum minutes. http://www.toonforum.co.uk/viewtopic.php?f=3&t=6170" onclick="window.open(this.href);return false;

[ddrive]

How is 10 million nothing? A club like ours and the owner is actually running us at a personal profit for himself, it's unreal. 90% of clubs in prem need cash injecting, not taking out.

And he is taking money out of us, hence setting up the newcastle (sports) direct account, and we don't get to see those figures...

Any money Mike Ashley is taking out, it's to pay back the £129million+ we owe him.

I will never understand how we owe him money. Newcastle United is a business that he owns, just like Sports Direct. If Sports Direct was about to go under and he put £129 million of his own money in to keep it going he is not entitled to just get it back.

[Jaiston]

Any money Mike Ashley is taking out, it's to pay back the £129million+ we owe him.

I will never understand how we owe him money. Newcastle United is a business that he owns, just like Sports Direct. If Sports Direct was about to go under and he put £129 million of his own money in to keep it going he is not entitled to just get it back.

It was debt the club owed, Mike Ashley paid it off so we don't have to pay interest.

[Goat]

Any money Mike Ashley is taking out, it's to pay back the £129million+ we owe him.

I will never understand how we owe him money. Newcastle United is a business that he owns, just like Sports Direct. If Sports Direct was about to go under and he put £129 million of his own money in to keep it going he is not entitled to just get it back.

Limited companies are separate entities. Ashley is just a shareholder of the company, so if he puts money into the business, then that personal money becomes the limited company's money.

[Cheik the room]

How is 10 million nothing? A club like ours and the owner is actually running us at a personal profit for himself, it's unreal. 90% of clubs in prem need cash injecting, not taking out.

And he is taking money out of us, hence setting up the newcastle (sports) direct account, and we don't get to see those figures...

Any money Mike Ashley is taking out, it's to pay back the £129million+ we owe him.

He'll make that back when he sells the club, no need to eek it out of us now. Unless of course he plans to get all his money back then give the club away for free, in which case all is forgiven

[The Rock Lobster]

We only owe him it because he was daft enough not to do due diligence buying the club.

[DarrasHallStalker]

Any money Mike Ashley is taking out, it's to pay back the £129million+ we owe him.

So it isn't an interest free loan then.

[Ramone]

Any money Mike Ashley is taking out, it's to pay back the £129million+ we owe him.

So it isn't an interest free loan then.

Yes it is. We don't pay interest but we still have to repay the principal amount.

[Pardew's Legendary Specs]

We only owe him it because he was daft enough not to do due diligence buying the club.

not true. he was daft yes, but we were/are the same club - I just tried to use the supposed word 'irregardless', clearly I meant 'regardless' -. If he didn't put the money in we would have a £135m bank overdraft charged at likely 5%+ but no-one would think any more about paying interest on that

[Pardew's Legendary Specs]

Any money Mike Ashley is taking out, it's to pay back the £129million+ we owe him.

So it isn't an interest free loan then.

yes. any repayments go to reduce the balance. If it incurred interest of say 6%, without repayments the loan would grow by £8m per annum, or we would have to pay back £8m without it reducing

[Pardew's Legendary Specs]

Any money Mike Ashley is taking out, it's to pay back the £129million+ we owe him.

I will never understand how we owe him money. Newcastle United is a business that he owns, just like Sports Direct. If Sports Direct was about to go under and he put £129 million of his own money in to keep it going he is not entitled to just get it back.

Of course he is. as you state they are seperate entities. Same as saying if you have an overdraft of say £500 are the bank entitled to it back or just because they gave it to you then it is fair you don't pay it back?

[Remember Colo]

Any money Mike Ashley is taking out, it's to pay back the £129million+ we owe him.

He'll make that back when he sells the club, no need to eek it out of us now. Unless of course he plans to get all his money back then give the club away for free, in which case all is forgiven

You raise a relatively good point with that. But it does still discount your earlier point that he's running it at a personal profit for himself, when the club is still realistically a long way from becoming "profitable" for him. Especially since the club also ran at annual losses after he made that loan. If I remember correctly, the Championship season was a huge hit.

[DarrasHallStalker]

So it isn't an interest free loan then.

Yes it is. We don't pay interest but we still have to repay the principal amount.

But I don't see any evidence of the principal amount reducing.

[Dr. Bishop]

Yes it is. We don't pay interest but we still have to repay the principal amount.

But I don't see any evidence of the principal amount reducing.

Because he isn't claiming it back. All the money is going back into the club. He will likely ask for the principal amount on top of the clubs value if/when he comes to sell the club.

[Jaiston]

Yes it is. We don't pay interest but we still have to repay the principal amount.

But I don't see any evidence of the principal amount reducing.

Ashley hasn't took any money out for that to be reduced, yet.

[TJR]

Yes it is. We don't pay interest but we still have to repay the principal amount.

But I don't see any evidence of the principal amount reducing.

Thats because its not. He's not taking any money out of the club. Any money the club makes is staying within the club. When he sells the club he'll take it back then and the new owner can decide to put another loan in to cover that or agree to paying off Ashleys own as part of the initial cost for buying the club thus making the club debt free.

[Yacob]

I wonder how many clubs will run at a profit?

We will become a very attractive club to buy once Ashley has finished with us. It really is incredible we are eighth

[Cheik the room]

He'll make that back when he sells the club, no need to eek it out of us now. Unless of course he plans to get all his money back then give the club away for free, in which case all is forgiven

You raise a relatively good point with that. But it does still discount your earlier point that he's running it at a personal profit for himself, when the club is still realistically a long way from becoming "profitable" for him. Especially since the club also ran at annual losses after he made that loan. If I remember correctly, the Championship season was a huge hit.

When I say that, I mean he is setting it up so that when he eventually cashes out, he will have more money than he did before he bought us. Which will undoubtedly be the case as the club will sell for at least 200 million.

[Remember Colo]

You raise a relatively good point with that. But it does still discount your earlier point that he's running it at a personal profit for himself, when the club is still realistically a long way from becoming "profitable" for him. Especially since the club also ran at annual losses after he made that loan. If I remember correctly, the Championship season was a huge hit.

When I say that, I mean he is setting it up so that when he eventually cashes out, he will have more money than he did before he bought us. Which will undoubtedly be the case as the club will sell for at least 200 million.

Gotcha. But every owner I think counts on doing that. Difference being that they probably accumulate losses each year of operation, compared to Ashley who took a giant loss right from the off to cover the losses. Yes that's partly on him, but still.
I take more issue with his decision making any more, than the spending side of things. Actually, I've probably always felt that way.