Newcastle United: Fourth in the Premiership, but fourth in the debt league too.

Posted on October 12th, 2011 | 55 Comments |

1/150th of Newcastle United's debt.
1/150th of Newcastle United's debt.
Of course, Newcastle United have been riding along on the crest of a wave in our first seven games in the Premiership, with our unbeaten start currently seeing us in fourth. However we also stand in fourth place in another table too, that of Premiership debt.

According to the table compiled by Deloitte, Newcastle are the club standing in fourth place with a debt of £150.385 million, which is over £26 million higher than it was when Freddy Shepherd left the club in 2007. Over £111 million of this is immediately repayable on demand to Mike Ashley should Sports Direct go tits up, or he gets a little carried away in Asper’s Casino one night, the rest being recouped in installments and secured on broadcasting revenue.

Of course, the club’s catastrophic relegation to the Championship, resulting in a huge loss of television and other revenue, was responsible for most of this, despite a huge cost cutting excercise by owner, Mike Ashley.

Here’s the debt table with the top five, along with the Mackems at number 11.

Premiership Debt Table

1 Chelsea £733.938 million
2 Manchester United £590.430 million
3 Fulham £190.248 million
4 Newcastle United £150.385 million
5 Liverpool £143.383 million
11 Mackems £85.891 million

NUFCBlog Author: workyticket workyticket has written 1055 articles on this blog.

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55 Responses

  1. The debt figure is from 2010, before we had the Carroll and Enrique income, making the table unreliable to base present assumptions on. We are in a far better position and I’m sure the debt is owed to Mike Ashley and not the banks so it could PERHAPS not be as bad as first thought.

  2. So havent we paid a few bob off the total of Fatman’s alleged loan WT ? Figures of £16m and £19m seem to ring bells somewhere ?

    *** This message was not sent from my Blackberry *** :lol:

  3. James Lawlor says:
    October 12, 2011 at 8:12 pm

    “The debt figure is from 2010, before we had the Carroll and Enrique income, making the table unreliable to base present assumptions on. We are in a far better position”

    True James, it is the figure from the last published set of accounts which is all they have to go on from any of the clubs. But if you know that our debt position is “far better” right now, could you please tell us what the exact figure is at this time? Or were you just guessing there without any figures at all?

  4. AndyMac – It’s because these figures, as said in comment no1, are outdated.

    The two repayments are due after these figures but, if paid, they will take it back down to the original £111 million.

    I don’t know they are only taking it back to that level as it would make sense to have a plan to pay it all off, or more, but there isn’t. At least not according to the last accounts anyway.

  5. No disrespect to the blog but I am just sick of hearing about NUFC finance then someone disputes the figures….then if they look bad someone will say “wait until the next ones are published”, then someone will say “Mike saved the Club” then someone will mention bad boards from the past and on and on…….Mike doesn’t give a stuff about NUFC end of.

    It’s just like the transfer window stuff…next window…ahhhh next window.
    Tomorrow never comes with that fat dick head in charge and he hates NUFC.

  6. well, if we qualify for the champs league come the end of the season then, I’m sure we’d move down to about 13th on the debt list… :P not saying it’ll happen but money owed to ashley is supposedly at an non-interest rate so its not such a bad thing and as much as we think he knows nothing about football and club management, I’m sure we’d all be content to shut our opinions when we’re performing so well in the league and domestic cups. So I guess truth be told, we’re all as big of a hypocrite as he is are we not?? Maybe not, we do not lie but I’d let him lie all he wants if we get a top 6 finish too, ;)

    * LETS SMASH THOSE SORRY YIDS!! I NEED BRAGGING RIGHTS OVER MY FRIENDS!!

  7. CLiNT FLiCK says:
    October 12, 2011 at 8:28 pm

    “What happened to liverpool’s other £500m debt, did the new lot pay it off?”

    Clint, I thought that £500 million figure was what Hicks and Gillet wanted to borrow to include for a brand new stadium, and that the debt was more like £300 million, though I’m no Liverpool expert.

    At one stage, I do remember the banks ordering the club to get it down to around the £140 million mark, which is roughly what it is in the table above.

  8. toonsy says:
    October 12, 2011 at 8:29 pm

    “AndyMac – It’s because these figures, as said in comment no1, are outdated.”

    The two repayments are due after these figures but, if paid, they will take it back down to the original £111 million.”

    Aye £28.9 million Toonsy which isn’t quite the same as “back to the original £111 million” but I see your point. However they’re always out of date. I remember waiting months for the last set pf accounts to come out, as you did.

    As I wrote to James above, if you have any more up to date ones, for Newcastle or any of the other clubs for that matter, let me know what they are. :-)

  9. @sunny … Fair enough leave a comment then what’s the point in “smash the yids” you complete f****** idiot

  10. worky,

    Ah! That could be it like?

    I just seem to remember a point where they were £500/600m in debt.

  11. wizard,
    spurs fans ‘do’ call ‘themselves’ yids mate.

    Are you a spurs fan?
    I’m sure he meant no offence like.

  12. Worky – No chance. Up to date NUFC accounts are a thing of rare beauty and they have been for years. Even Freddie boy used to file them late, as a PLC :shock:

    Even if it’s not down to £111m, why? Why put in black and white a plan to pay a small part of it off when they can go much further? It’s like being determined to get your £300 electricity debt down to £250 :???:

  13. toonsy says:
    October 12, 2011 at 9:10 pm

    “Worky – No chance. Up to date NUFC accounts are a thing of rare beauty and they have been for years.”

    Toonsy, aye, once again, I know what you mean. However, I may be wrong here, and you may remember better than I can, but I seem to recall waiting much longer for the last set than the ones for the year before?

  14. CLiNT FLiCK says:

    “What happened to liverpool’s other £500m debt, did the new lot pay it off?”

    I think that debt came mainly from Hicks/Gillette own “leveraging” to use that cringeworthy term :) They borrowed, as did the Glazers, to buy the club and the global financial meltdown gave them problems repaying that debt.

    Having said that the Fatman could well have written off the mortgage element of the “debt” when he bought the club as that was a genuine expense which occurred because a new buyer took the club over (but failed to check the small print).

  15. At least the debt isn’t smeared with interest.

    Andy,
    ta mate & yea, y’d think that the mortgage would be a separate thing. Not a debt, an obligation.

  16. workyticket says:

    “Sell Shola addy”

    You’d have to sell him quite a few times WT to shake off that money from debt tree ? As he has Nigerian antecedents maybe we could set up a “scam” whereby we sell him to 100 different clubs at the same time ensuring the cash is sent via Paypal ?

  17. workyticket says:
    October 12, 2011 at 9:16 pm

    “Toonsy, aye, once again, I know what you mean. However, I may be wrong here, and you may remember better than I can, but I seem to recall waiting much longer for the last set than the ones for the year before?”

    Nah. The ones from our relegation season we got in May at the end of the Championship season. The ones for the Championship season we got in March of last season. early by our standards :shock:

    Although there was a delay. I remember they were submitted and showing at Companies House earlier in the year, but they weren’t available to d/l for a week or two for some reason.

  18. @ Wizard, I do apologise if I caused you to get upset with my comments about the “smash the yids”, I meant that in a very excited newcastle fan looking forward to the weekend’s match, I really dun go on forums looking for an argument. To my understanding, I have many friends who happen to support spurs and do somewhat proudly label themselves as yids…. so just clearing up why I presumed it to be really non offensive to anyone… :)

  19. What about the statement we have heard more than once – “This club is now debt free.”
    After all the flak Freddie took, over his handling of the finances of the club, it is ironic that the club is now deeper in debt than when he was at the helm.
    And Freddie never took us down either.
    Seeing as the club was around £40 million up at the last window on transfers maybe the next set of figures will reflect that.
    I’m not holding my breath.
    Unfortunately it’s all smoke and mirrors with Ashley.

  20. Sikovash says:

    “What about the statement we have heard more than once – “This club is now debt free” Unfortunately it’s all smoke and mirrors with Ashley”

    Like those mirrors you get at the Funfair that show a fat wobbly belly and a small pinprick head ? Oooops thats no mirror :)

  21. Sikovash says:
    October 12, 2011 at 10:40 pm

    “What about the statement we have heard more than once –

    “This club is now debt free.” ”

    Or this one from the Mike Ashley and Derek Llambias greatest hits collection Silkovash.

    “In relation to recent media speculation following the statement made by the Club on May 9, Newcastle United would like to make it clear that owner Mike Ashley is not looking for his interest free loan to be repaid, or to take any money out of the Club.”

    From the last set of published accounts:

    “The group’s total outstanding loan balance from Mr.M.J.W.Ashley was £139.8 million (30th June 2009 £111 million) including £16.5 million due after more than one year (see note 13). All of these loans are non-interest bearing £28.8 million (30th June 2009 £nil) is secured on future broadcasting income, of which £12.3 million is repayable in August 2010 and the remainder, £16.6 million is repayable after more than one year (see note 13). The remaining (unsecured) balance of £111 million (2009 £111 million) is repayable on demand.

    Note 13:

    “The loan of £16.5 million from Mr M J W Ashley is secured on future broadcasting revenue and is repayable no earlier than August 2011.”

  22. Sikovash says:
    October 12, 2011 at 10:40 pm

    “Seeing as the club was around £40 million up at the last window on transfers maybe the next set of figures will reflect that.”

    “Free” transfers can be just as expensive as normal ones with a multi million pound fee attached and there’s the undersoil heating to consider Silkovash.

  23. supermac says:

    “own up! who is the one person to vote NO in the poll?”

    Twas me I thought it said “Has Fabricio Collocini been a good chaplain of Newcastle United ?”

    Should have gone to specsavers I spose ?

  24. workyticket says:

    ““Free” transfers can be just as expensive as normal ones with a multi million pound fee attached and there’s the undersoil heating to consider Silkovash”

    See you havent lost that cutting edge WT even during this period of forced inactivity. Damn these International breaks !

  25. The reason why companies house don’t let the public view reports until two weeks after filed is because the company in question had two weeks to alter and view them and make any amendments necessary .

  26. Re. James Lawlor query

    Sir,
    Since nobody, barring NUFC beancounters, know the figures yet, it is a guess but I would venture to say, an educated one.
    I have seen the figures for all PL clubs for 2010; I believe it was printed in one of the broadsheets. I downloaded it. It specifically states that these figures were from our promotion season, with incomes halved. It also acknowledges our high wage bill for that league, but keeping those players brought us back up. Further, it states that this makes no account of any trading income from last January (i.e. £35m).
    Most people have pointed out that our trading since then has been revenue neutral at worst, and profit-making at best.
    Therefore, the logical conclusion is that the club should show a reduced level of debt. If I were paying it off, I would pay off the loans not due to MA since these loans accrue interest and MA’s loans are at 0%.

  27. I know Mike Ashley has a lot of faults and made a lot of mistakes but do these figures not show he is propping the club up financially. For all those supporters screaming get out of our club you cockney b******d if he did we would go straight into administration! You should be careful what you wish for.

  28. Martin Rose says:
    October 13, 2011 at 10:13 am
    “I know Mike Ashley has a lot of faults and made a lot of mistakes but do these figures not show he is propping the club up financially. For all those supporters screaming get out of our club you cockney b******d if he did we would go straight into administration! You should be careful what you wish for.

    Thanks Martin it is time we stopped knocking Ashley and see some of the good he has done.
    It is quite normal to dislike the club owner I have never liked any and I go back to Lord Westwood.

    Before anyone knocks the guy again reread this and remember we still have a club.
    http://nothingbutnewcastle.com/2011/08/blogs/heres-your-35-million-sincerely-mr-ashley

  29. What did Sikovash say earlier ? “Its all smoke and mirrors with the Fatman”

    Here we have Martin and Fatash telling the rest of us that the owner is the modern day equivalent of St Francis of Assisi while others know that the “debt” in question is largely of his own making.

    Failing to realise that the £40m ground improvment loans would have to be paid off immediately after a new owner took over is a debt, or something which should be written off by new owners ?

    Mistakes made by him, appointing four managers in one season, cost us our Premiership status and another £50m.

    Add the payouts to Allardyce and KK along with the appointment of Wise and his dodgy deals, costing over £10m, and you have the other side of the “Fatman for Prime Minister” argument.

    PS Bearing in mind the fashion for clubs to hand over naming rights to sponsors, I look forward to viewing the financial results next year to see how much Sports direct have paid for the benefit of marketing their brand all over SJP ?

  30. John Gilbert says:
    October 13, 2011 at 8:58 am

    “I have seen the figures for all PL clubs for 2010; I believe it was printed in one of the broadsheets. I downloaded it. It specifically states that these figures were from our promotion season, with incomes halved. It also acknowledges our high wage bill for that league, but keeping those players brought us back up. Further, it states that this makes no account of any trading income from last January (i.e. £35m).”

    John,

    If you downloaded it all and familiarised yourself with it to that level of detail, surely you should know which “broadsheet” publication it was from?

  31. I did not say MA was a saint – I said he had faults and had made mistakes but the fact of the matter is no matter how much you blame him or name call if he walked away we would be in administration – FACT. If you want to start pointing fingers then point in Fat Freddy and his cronies direction who wasted ridiculous amounts of money, paid themselves millions in bonuses and hid debts from MA when he bought the club (which is why he sacked him).

  32. Martin Rose says:
    October 13, 2011 at 3:54 pm

    “no matter how much you blame him or name call if he walked away we would be in administration”

    Martin, with all due respect, that must be about the most specious argument I’ve ever heard. You could say that it proves the opposite of what you’re obviously trying to prove, ie if this club is still facing admin if Ashley walks away after over four years of his stewardship, he’s done a pretty lousy job ;-)

  33. Martin I think the club is now on a better footing now than it was when sold to Ashley, we are cerainly a better side and at the moment things seem fairly settled and playing good football. I agree if he walked away taking his money with him we would be in grave trouble, the club must be more sellable now than at anytime before in Ashleys time. I hope he sticks with the club until at least his often quoted five year plan has had its chance. I don’t see anything to be gained by knocking him all the time, unless the plan is to sicken so much he does walk but what then, admin? new owner?
    Lets just hope his plan works, he stays and we get the results we want

  34. Looking closer in the actual findings in the Guardian there is one glaring figure. TV revenue for those clubs who where not playing Championship football that season but where also not in European Competition was anywhere between £38-52 Million. Where as Newcastle’s (still impressive for a then Championship club!!) TV revenue was £16 million so we are looking at a minium uplift for last season of £22 Million (more likely around £30 Million) what with the Andy Carrol money and a further reduction in the wage bill surely that figure is now actually a lot lower. Just thought!!

    PS What did amuse me was the commercial income bit

    Premier league Su******d £5 Million
    Championship Newcastle £15 Million

    Not many Red and White shirts been sold in America then!!!
    :)

  35. “no matter how much you blame him or name call if he walked away we would be in administration”

    I read some crap on MB’s and blogs but surely this has to go somewhere near the top of the pile ??????????? How the F@ck is Fatman is going to walk away from this club without getting his money back ???????????????

    One way would be to donate it to the good people of Newcastle and ask them to say prayers for his fat soul in church on Sundays :)

  36. AndyMac,

    Mike Ashley is a saviour and hero to Newcastle United football club. If it was not for him, we wouldn’t exist. By no means did he increase the actual overall debt of the club by hiring an odious little runt named Dennis, undermining any manager who took charge, lying to them, sacking them resulting in multi million pound pay offs, and hiring 4 managers in one season and getting the club relegated. This was not his fault, and anyone who thinks it is are sadly mistaken. Nor have any of his actions since taking charge, resulted in the debt increasing.

    He is a true hero. In great shape, and loves Newcastle United and it’s fans.

    You can put this at the top of the “crap” you’ve read about Ashley if you like AM. Reckon that wins by a mile. :-)

  37. Jimbob

    Give the man a break, it’s on the job training and he is learning.
    Take for instance, did’nt cost him one thin dime to get rid of Hughton, just sent his yes man/ fall guy with the message, “you’r outta here”, cold !

  38. workyticket says:

    “If you repeat a lie often enough, it becomes the truth”

    Did you ever think about doing that “Spin Doctors of SJP” article WT ? It was bad enough when Fat Freddy got his minions to trawl the messageboards but now in the reign of Mike the Corpulent we’ve hit an all time high in terms of spoonfed propaganda and bullshlt.

    Examples that I can think of:

    £35m was too good to turn down (yet spending any of it is not good for this club)
    Jose offered a great new deal (which he turned down so he’s a money grabbing twat – get rid)
    Nolan and Barton too old for this club (but Jonas and Fab aren’t ?)
    NUFC now financially sound :lol:

    Welcome to the court of Hans Christian Andersen or as its now known – Mike Ashley’s Money Pit !

  39. “over £26 million higher than it was when Freddy Shepherd left the club in 2007”

    Eye on the ball.

    Remember too that we haven’t been getting proper sponsorship revenue for plastering SD all over SJP.

    -armykev@43: never seen a single sunlun shirt over here in nyc-and I even saw a guy in a Fulham shirt once…

  40. Chuck,

    I get it now, so that’s why he doesn’t buy ‘expensive’ players on ‘big’ wages any more. Or managers on ‘big’ salaries… Fair enough, it’s sensible. A far stretch away from his previous cock-ups. People forget, and blame Shepperd (rightly) for many stupid signings on big wages. Ashley done the exact same at the start, but obviously not to the same degree as our previous owner, but he still sanctioned Smith, Geremi, Viduka, Colo (that’s OK though!), Xisco and Barton on ‘big’ wages.

    But anyone who thinks this man is a saviour, and doesn’t deserve any kind of criticism needs their head examining. They’re probably the type who think Shola is a legend.

  41. Jimbob

    Not quite sure what your message is, hope you understood my remarks @ 47# were tongue in cheek and in no way a recommendation of how Ashley conducts his business.

  42. Chuck, I know you were joking mate. I was joking too, I then went on a rant about the fat bastard! :-)

    I know you’re a frequent visitor and poster on here Chuck, so I’m aware of your feelings on him… Somewhat similar to my own.

  43. Chuck, I was merely ranting about how some people defend Ashley by talking up his brilliant financial ‘plans’. When in reality, he had / hasn’t really got one, he’s just playing with the cards he’s been dealt.

  44. AndyMac says:
    October 13, 2011 at 8:20 pm
    workyticket says:

    “Did you ever think about doing that “Spin Doctors of SJP” article WT ? It was bad enough when Fat Freddy got his minions to trawl the messageboards but now in the reign of Mike the Corpulent we’ve hit an all time high in terms of spoonfed propaganda and bullshlt.”

    Andy, As you may know by now I’m a very curious person and I’ve been investigating a piece of “persona management” software which was developed for the US military by HB Gary Federal. There is evidence that it has leaked into the seamier parts of the PR Industry to create and manage “sockpuppet” identities to shape opinion on forums, blogs and such. If I ever hear that any of Mike Ashley’s PR companies have been using it… ;-)

  45. Jimbob says:
    October 14, 2011 at 12:00 am
    “Chuck, I was merely ranting about how some people defend Ashley by talking up his brilliant financial ‘plans’. When in reality, he had / hasn’t really got one, he’s just playing with the cards he’s been dealt.”

    Nobody invests the sort of money Ashley has without a business plan least of all him. Business is about making money I am sure he and the club will in the longterm.
    Its very easy to knock a guy who doesn’t answer back.

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