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Newcastle due a cash windfall, but it must be spent wisely.

Posted on May 20th, 2010 | 75 Comments |

We're NOT in the money, yet!
We're NOT in the money, yet!
I was just having a quick look through some of the key points of the latest accounts that have been submitted, and came across something rather interesting that I missed in my initial assesment of them a few weeks back.

It’s concerns money that is owed to the club from player sales, and could explain partly why cash at the club seems to be thin on the ground at the minute.

In the footnotes, it seems the club is still owed £17 million from the transfer of players like Damien Duff, Charles N’Zogbia, Obafemi Martins and James Milner, of which £13 million is due to be repaid this year. Of course this is a trend in football at the minute, to buy players over a number of years on a capital outlay, never never basis, which it seems is the way that some players have been bought off of us. In contrast though, our theory is to buy players using cash upfront only, which could be part of the reason why we can only expect a few signings to be made this summer.

Of those players, a certain James Milner appears to be a target fro moneybags Man City, and Aston Villa have already rejected a bid of some £20 million from the Eastlands outfit. Now the key question here is, did we do what most clubs would do when selling a relatively young player, insert a sell-on clause? A sell-on clause would mean extra money for us should Milner complete a move to Manchester City, and we know Mike Ashley loves money. So on that basis I would assume there has been one inserted as they are hardly a little known secret that is hidden in the depths of football knowledge, and in that case, Villa are right to hold out for as much money as possible as it benefits us aswell.

Anyway I digress, the main issue is will the £13 million be reinvested back into the first team, or is it earmarked towards club running costs? Before it starts, let me nip the whole ‘Ashley will put it in his back pocket’ thing in the bud, it won’t happen, and it hasn’t happened in the past as proved by the accounts when they have been published. Again I digress, but will it be invested in the first team after all?

Well throughout the summer there has been some press rumour of a £15 million transfer kitty, which if you couple it to this incoming money from transfers may just have had a degree of truth in it all along, although I am guessing more by luck than accurate judgement. If the £13 million is invested in the team then we need to be aware that it still won’t buy much, especially as our plan is to buy players up front using cash and not the club credit card over a number of years.

It’s a tough medicine to take for us all, but it is a medicine that wll ensure we thrive in the long term. It is at least a possibility of some cash being spent, and as it’s already accounted for as an income for the club then no new capital would be needed to give us a transfer fund.

Now lets see what happens.

NUFCBlog Author: toonsy toonsy has written 643 articles on this blog.

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75 Responses

  1. hiya toonsy, interesting piece. ive just done a little maths, nd if a player is on 20,00 a week that works out at just over 1 mill pa. so it looks like 2/3 players incoming looks very very possible. but its a tight budget, with little room for mistakes. but i do reckon we will get a few new faces through the door, over the summer.

    must admit ive been happy with CH’s signings so far, nd i reckon the l best debate will continue, untill he iether hits form or is off loaded in Jan. i reckon uve got to give the lad a chance, he cant be utter shite if he keeps retaining his international place. well in theory anyway, however i could be wrong. nd if he doesnt improve by Jan then id be tempted to c wat offers we get.

    also read today about the bunch of youngsters whove been told they will be involved in squad during the summer, nd nxt season. so that looks like a welcome move.

    oh nd the hughie galagher story is very interesting, so i look forward to reading the article in the future. if i find any informative pieces ill e mail their links. ive thought for a long time it would make a grt stage play, esp after the success of that recent 1, which premiered at live theatre. sure it done a national tour, so the interest is out there lol

  2. Grasping at straws a bit here Toonsy.

    – No capital outlay means no 15Mil budget.
    – Will Milner have a sell on clause (doubt it).
    – 13mil in… yes, but we may well still owe a bit on players we’ve brought in over the years. Some of which have already left?

  3. What are you doing here ?
    We are going to hear from all the beancounters and business grads. now, explaining how things work.
    Think following the clarifications concerning the Statement we are by now totally confused and not really lookink for further clarification on any matter.

  4. interesting to know that ive always had the thought that 10 to 15million would be available to bring in 2 to 3 players, dont mean to bring up that statement again but it never actaully said there was no cash already there to use ppl just assusmed there was none plus there is cash from the new sponsorship deals to come in, i see weve been linked with that ebondo again on free wud sign him decent compition for simpson and i would try and bring in kris boyd and try and sign tom cleverly on a permnant deal not loan he has been loaned out alot which usually means fergie dosent see them in his plans

  5. I would be amazed if sell on clauses were inserted in the sales of either Milner or Insomnia. Ashley did not even see the sense to put a relegation clause in Nolan or R Taylor’s contracts.
    I expect a minimum outlay this summer and folk ought to forget about 4m plus signings.

  6. Given to richest club in world 4 £6m!
    sell on clause for Milner / N’Zogbia etc!?
    U MUST BE JOKING!!
    NUFC didnt think of the obvious!! they see £ signs and run, not thinking of the future!!

  7. jj – fair piont,13 mil in… but i think it does show were not leaking cash as badly as b4. we r moving in the right direction (fiscally ). hopefully this bout of frugality will only last for a yr or 18 months.
    i realise that avoiding relagation, nd havin a decent cup run lol doesnt exactly fill u with enthusiastic optimism, but its something we just have to endure.
    i still reckon we’ll c sum new faces. iether bought or on loan.

  8. JJ – You forget, the term was no “new” capital outlay. As Davy says, people assumed it meant no money when in actual fact there is money coming into the club that could be used instead.

  9. this rumour concerning nolan > b/burn hasnt been nipped in the bud, yet. mind u been sum good points about contracts not inc relagation clauses, which could mean no selling on clauses. although making cash is the fat1’s mission, so wouldnt be suprised ir indeed we do have selling on clauses.
    but i guess we will just have to wait nd see. am a little suprised that the nolan exit hasnt been denied by club, CH or KN himself. would u sell ? if so how much would u ask ? think we paid 4 mill, so would be tempted at 7 mill.

  10. It is quite simple, no capital outlet means no money will be spent to purchase capital assets. Whichever why you spin it that sentence only means one thing.

  11. BLC says:
    May 20, 2010 at 7:52 pm

    “It is quite simple, no capital outlet means no money will be spent to purchase capital assets. Whichever why you spin it that sentence only means one thing.”

    I’m glad that at least one other person can see the bloomin’ obvious. :-)

  12. Chuck – It’s also nice to see you can’t admit when your wrong about someone and offer an apology for a potentially damaging slur on the other thread after your latest comment.

    You really are a class a bell end.

  13. Chuck says:
    May 20, 2010 at 7:49 pm

    “Toonsy 76#
    Be a cold day in hell when you get an apology from me you little weasel.

    You and your new friend the whack job from SA can go pound salt as far as i`m concerned.

    You are a minipulative little crybaby, with a massive ego to feed, maybe you would be better to go find a life instead of wasting it here.”

    Just in case people wondered what I’m banging on about ;)

  14. Johnny > am a little suprised that the nolan exit hasnt been denied by club, CH or KN himself

    I wouldn’t worry to much CH say’s he doesn’t expect anyone to go. and if they were to deny every rumour of players leaving they would need to cancel their Hols ;)

  15. i reckon it means the club will have to be self sufficient, MA wont dip into his pocket to bail us or to finance any signings. seems fair enough to me. hopefully this frugal period wont last longer than 18 months.
    i must admit tho, this everton moyles adoration is bit ott imo. they dont exactly play exiting football. the arsenal model sounds alot more promising.
    i hope to c a couple of exp EPL players, coz if weve promoted the young uns to the senior squad, we will plum for exp epl players if we can only afford 2 or 3.
    the SWP deal sounds like the sort of deal for us atm.
    like i said in a previous comment surely we can now bu united in the knowledge that the club is financially moving in the right direction.
    this business of saddling the club with debt ala manure, pool chelsea is very very dangerous, and pretty obscene imo. i reckon there will be some clubs who through this debt mallarky sadly will go to the wall.
    i reckon the squad as it is today is good enough to stay up, although we might get a couple of thrashings. but with couple of good additions we might even take a point or two against the top4 lol

  16. I mentioned this before but surely if Milner is sold to Manc Al Citey, then we should get what we’re owed from that sale off Villa shouldn’t we??? Not sure about the clause but I’m sure Villa didn’t pay us £12m up front for the lad, so they must still owe us anyways….

    From my workings outs & I’m no math guru but we currently owe out around £115m, no not to Ashley but the clubs outgoings, here’s how I figure it:

    £37.5m loss season 08/09 (Prem)
    £32m loss season 09/10 (Fizzy)
    £25m cash injection from Ashley (Fizzy – owed back no probs)
    £20m overdraft facility

    So the £60m from promotion will all go to pay some of that off & we’ll still owe around £50m, which I can understand will come from shirt sales, season tickets sales, gate receipts etc over the next few seasons…

    Now I maybe wrong as I usual am, so I expect some of you to blow my theory out the water but on paper it sounds plausible to me :)

  17. Top 6 next for us next season I reckon, Big Andy Carroll will score a hatfull and Alan Smith must be due a goal. Tooooon Army!!!!

  18. Dave – Last comment before I go, really this time ;)

    I just hope tonight is better than last night and I’m not stuck in Bradford for nearly 4 hours :(

    Long story, my own stupidity :lol:

    Later

  19. Oh Chuck it must suck to be you…

    I thought we’d agreed to end the name calling and talk football. But I suppose I should be happy I’ve progressed from a “racist” to a “whack job”.

    Anyway, if you feel Toonsy needs to find a life, how sad is it that you spend half of yours reading and posting comments on the articles he writes.

    Give it a break man. I can’t stand you but lets stick to football and ommit the name calling now can we?

  20. Johnny,

    Everton may not play exciting football, but to be fair – when is the last time we did?
    I’d be quite happy to get back to being solid, and build a bit of pace and flare in after that….

  21. Cyprus-Toon

    We can’t prove you wrong mate…

    We are all just as clueless as you are.

    I had some idea, but then Newcastle clarified everything with that statement. And now I have no idea what the financial situation is.

  22. Toonsy
    I` a bit puzzled as to what the POTENTIALLY damaging slur was, perhaps i can use it again.
    And just how potential was it ?

  23. I will be disapointed if we dont make the top 10 at least, the current crop of players have proven themselves over the last 12 months to be outstanding. There is very little difference in class between the top of the championship and the premier league.
    We maybe do need to strengthen in one or two key areas but I also beleive we must not panic buy, give these lads a chance until xmas at least

  24. JJ thats the way to go fella, agree to disagree and move on. Im a firm believer that once you start name calling and getting personal youve lost the argument.

  25. Big Dave says:
    May 20, 2010 at 8:32 pm

    “JJ thats the way to go fella, agree to disagree and move on. Im a firm believer that once you start name calling and getting personal youve lost the argument.”

    Or just keep sniping endlessly with thinly veiled little statements, Dave? ;-)

  26. JJ – we tried the solid approach ala big sam, look where that took us. i thought we played some attractive footy last yr at times JJ. jonas, w routledge running at players. and JB showed his class with a few grt passes nd goal assists.
    i pay to see NUFC play footy, nd for most of the games i saw last season i was satisfied JJ
    hopefully JB can push on from last season, coz ive never been a huge fan, but at times he did show some pedigree nd class.
    the worry i have is what happens when a few of the less exp players find the step up a little scary, nd there confidence drops. ive a worrying feeling that if 2 or 3 players have an off day, the rest of team isnt good enough to cover the poor performers

  27. Big Dave
    Screw you too pal, who do you think you are, why dont you just mind your business.

  28. M.O I’m thinking positive…………I’m positive the kebab I just had,I’ll paying for in the morning!! ;-)

  29. johnny

    Look, I said solid. Not ugly ;)

    Yes, some arn’t impressed with Routeledge or don’t think he is premiership class, but statistically he contributed more than Jonas last season. And Pace is a HUGE factor in the Premier league. So I’m very happy with them out wide…
    I’d like another wide man with pace as cover though.

    As for Joey. He has undoubted class and will be important, but for me. Its Guthrie. I just love him. And really think when he gets a bit more belief in himself he will be a fantastic player.
    I’d like to see him shoot a bit more and get up the field.
    Nolan for me is still our most likely midfielder to score. But I think his role is more feeding of the big man Andy Carroll in a 4-5-1 formation.
    In 4-4-2, I’d go with a fit Barton and Guthrie.

  30. The morale officer senses a lot of negetive vibes from within chuck, please tell me about your childhood, do you have skeletons in the closet?

  31. Apart from perhaps a utility wide man who can cover both sides. I’d say our midfield looks pretty sorted. The players are there, just hope they hit form.

  32. Worky I can honestly say that was not my intention when I wrote that. You might think it was and I can understand why you might think that, but as of yesterday I have noticed how much abuse and name calling is being banded round by bloggers which make it very negative and distructive for others. I will admit that before yesterday I have had 1 or 2 wee digs at you :( , but it was starting to get out of hand and really depressing so I decided to move on.

  33. Mmmm! time for a cold one 79F. in the shade, perfect, with not a cloud in the sky, Amstel time folks, later.

  34. Big Dave:
    May 20th, 2010 at 8:52 pm
    Worky I can honestly say that was not my intention when I wrote that. You might think it was and I can understand why you might think that, but as of yesterday I have noticed how much abuse and name calling is being banded round by bloggers which make it very negative and distructive for others. I will admit that before yesterday I have had 1 or 2 wee digs at you , but it was starting to get out of hand and really depressing so I decided to move on.

    Don’t worry big dave, I’m here to help :)

  35. i wont argue with u JJ coz we seem to be sayin similiar things. however i’m not as confident as u appear to be in our midfield, call me a pessimist if u like.
    like u i just hope they hit form, :)

    again we could use n ranger in midfield at a push (papers reckon he;ll be loaned out), nd that young un is it kadar ? the hungarian lad who i think plays midfield. so im hoping for a mid table finish, might be few places below, just as long as we finish above the scum :)

  36. I’d use Vuckic in midfield or Inman before Ranger Johnny…

    I’m not saying our midfield is top four material, but with limited finances, its the last area we need to address.

    If any of them don’t hit form however, we’ll all be saying its a weak area that desperately needs strengthening in January… ;) haha

    I’m trying to be optimistic here…

  37. Morale officer

    I think you should pop round Colo’s place… It hasn’t been the best of days for him.

  38. vuckic that the fella JJ. yeah if u split the team into attack, midfield, defense, i guess ur right the mid is our strongest area. good point, so yeah i’ll be optimistic for a change ;)

    so do u reckon carroll will manage the step up ? i do i must admit, so maybe the club hope so n all, hence them not buying a proven premier league striker, although theres plenty of time left.

    imo if we buy any1 it will be b4 world cup.

  39. Personally, yes I do think Carroll will make the step up.

    I don’t think he will score as many but I think he’ll play an important role in getting the odd goal and holding the ball up as well as being a big nuisance.

    Much like Kevin Davies does at Bolton…

  40. JJ

    colo sent me a message, it read “Diego, vas a pagar, traidor. This does not look hood for the lads morale, but I’ve been trying to teach him Alexander technique.

  41. Big Dave, Perspnally I think you’re one of the few on here who isn’t out for just an argument. Keep on giving your opinion and being you.

    It’s obvious Worky has something against you, I don’t know what, you two may have had a bust up sometime, but don’t let anyone grind ya down mate.

    You’re one if the more realstice guys on here and it’s all the better for that.

  42. Getting a bit sick of this misquoting about outlay stuff. Read it: no plan for new outlay …

    The word negated is *plan* not *outlay*.

    Make of that what you will you negative buggers.

  43. What is Ashley going to do with an extra 13Mil GBP…new kits for all…if he can just find the box he put them in…

  44. I used to post on this site a fair bit when it first started, but now, more often than not, it descended into a slanging match between posters, like Ed’s site.. Well done to everone for dragging this forum for fans of football down into the mire…..

  45. Aussie – take no notice of it all man, just ignore it and make your poinr regardless. There are still people who enjoy football chat.

  46. Chuck (@ 45) 79F – a perfect temperature methinks. I love it when the temperature drops to that level.

  47. Well from what I can see here is Ashley will put a transfer limit of 10-15 million for Chris to aquire several new signings, 4 at the most. However I can see us signing a few players for free and loan.

    I think we need to sign a decent striker who will score around 15 goals in the premiership at the least, we also need a pacey central defender as Coloccini and Taylor are not the fastest in the world other than that I feel we can survive the drop and finish 10th-14th respectivley.

  48. Aye just ignore it Aussie.It has been bad over the last couple of days but hopefully thats over and it’s back to the football craic.

  49. It used to be speculation about who we were going to buy that kept us going thro the summer months it now looks like its “what no capital outlay” means or how much we will spend, which ranges from nowt to £15 mil. Chris has said he expects to bring in players & at the moment thats good enough for me, he has not let us down or lied to us so far…..well as far as I know. Think we will see at alot more of the 5 man midfeild next season & it might be good to try to get a beardo style player, strikers who score more than 15+ a season in the prem are fairly rare outside the top 4 & would cost mega money.

  50. Aussie Magpie Fan says:

    “I used to post on this site a fair bit when it first started, but now, more often than not, it descended into a slanging match between posters”

    You are quite right Aussie Magpie.

    Apologies for my part in that. Just let my emotions get the better of me…

  51. Big dave thinks toonsy is wonderful and agrees with anything he writes , their blog relationship is growing stonger every day x x x

    We believe worky has noticed this and has become very jealous and will stop at nothing at breaking them up x x

    Comments Welcome x

  52. Stuart @ 57 thanks for your kind words mate ;)
    Ed @ 70 :lol: Yeah Toonsy is a good Lad, and an odd time he gets things right :)

  53. I reckon we should offer players on megabucks like Barton an ultimatem. Wage cut and stay or sold. Getting sold will result in a wage cut anyway as no one would pay the world class wages for the mediocre players like we do!

  54. Thing is Moreno, that is easier said than done. They have contracts after all, and could just sit on them ala Geremi.

  55. Big Dave
    JJ says
    Oh Chuck it must suck to be you….
    Give it a break man, i cant stand you, but lets give it a break man and talk football and omitt the name calling…

    Big Dave says
    JJ thats the way to go fella, agree to disagree then move on….

    The passive-agressive attitude, that`s what Dave !

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