Like all other Newcastle fans I was intrigued to find out what Mike Ashley would do with the anticipated £50m NUFC profits from last season.

Everybody knew that there would be an extra £30m or so TV money to be added with the new deal that kicked in starting with the 2013/14 season.

(To feature like Sam, send in your articles for our website to [email protected])

Then with no players bought and only Luuk de Jong and Loic Remy brought in on loan, the sale of Yohan Cabaye looked set to deliver another near £20m to the pot.

The only question appearing to be whether Mike Ashley would pay off a signifcant chunk of the club’s ‘debt’ to him, or belatedly allow some significant transfer market activity with the profits.

The actual reality revealed this morning by the club is a bit confusing.

The near £30m (£28.3m to be exact) extra from TV and a rise of £8.5m in commercial revenue (small drop of £1.9m in matchday money) has instead only ended up in a relatively small operating profit of £4.7m.

Then when the player trading has been taken into account, this has added another £14m, to bring a final profit of £18.7m.

Not quite the £50m or so most of us were anticipating….

The club have only given out the information they want to so far but when the full accounts are filed at Companies House shortly, a lot more should hopefully be revealed.

Newcastle United haven’t said why operating costs have gone up a massive £28.5m compared to the year before (In 2011/12 they were £98.4m, in 2012/13 £96.5m and now for 2013/14 £125.0m!).

Of course, if you added this unexplained rise in costs then you would get close (£18.7m profits plus £28.5m rise in operating costs = £47.2m) to that expected £50m profit figure.

Like many of you I envisaged a shopping list of at least a decent striker, two centre-backs, a winger/midfielder who can score goals and cross a ball….

Instead it is hard to see just where major squad strengthening will come from if we are purely relying on players being bought with thsi £18.7m surplus.

I’m left guessing where the extra £28.5m has been spent; diamond decorated new specs for Lee Charnley, a new gold throne for Mike Ashley to sit on as he looks around at the riff-raff inside St. James’ Park, or maybe some bionic replacements for the wonky body parts that keep sending most of our squad into the treatment room?

Anybody else with any better ideas?

City Hall Gifts -

  • Phildene

    Mike Ashleys pocket aka Mashholdings -simples

  • Chemical Dave

    Have you factored in the electricity bills?

  • Polarboy

    Is anybody really surprised, this story had already been written in everyone’s head to about the same accuracy.

  • magpie9

    Ashley gets paid one million quid a word for each of his statements to fans telling what is going on

  • Peter Moustachley

    Bogus profits as we all expected, we’re all just waiting to see how he’s hidden the profits this time, it must be getting harder for him, they’re even saving on media refreshments for the love of God!!

  • Conman

    It has to be in the operating costs where it’s been ‘lost’. Until the full details have been registered, we can all guess. But when they are, we’ll see the monies heading off to third parties that are held by fcb.
    Everyone knows that the costs have all been rid of using third parties to cut overheads. This should have the effect of dropping operating expenditure. Not adding to it.
    We wait and see……

  • toon tony

    That new TV must have cost a canny packet. !!!!

  • ManicMagpie

    Op costs are indeed much higher than might have been expected. Wages probably up a few millions – full year costs of Jan 2013 additions Debuchy, Mbiwa, Gouffran, Sissoko, Haidara, plus loan fees/wages for Remy and de Jong. Would also have increased player amortisation costs as transfer fees paid for these players are written off over their contract periods Maybe also opportunity taken to write down early other player values given events after the close of the financial year – Ben Arfa, Santon, Mbiwa? Will be clearer when the numbers appear at Companies House in next few days

  • LeazesEnder

    The sums don’t add up a £28.5m rise in operating costs….. thats a bit vague….. a process of deduction then..

    ….We can rule out players and wages… that went down!…. and player trading produced profits
    ….We can rule out ground improvements, there weren’t any apart from the ghastly floodlights.
    ….Training ground, he sold off land for housing and no new work on the facility has started yet.
    ….Catering… is tended out to Sodexo
    … Land lease from freemen…. doesn’t change
    ….Electricity and power…nope (are they hooked to Geo-thermal yet?)
    ….Matchday staff…. (students still on £35 per day) no change.
    ….Security/, bodyguard/ to confiscate leaflets from Sack Pardew Campaign/ Kyle Utterton – a few grand?
    ….Get well soon card for Jonas = £0.00
    ….Maintenance/ that bloke with the crowbar wasn’t needed this year.
    ….New TV = free
    Nope thats me done!

  • Corkyjohn

    Maybe we paid for all the warehouse workers ashley made redundant….the man is corrupt

  • Brian Standen

    Anyone who can add 1 + 1 can see this just does not make sense, there seems to be a 28.5 million ambiguity!
    Could this extra expense be the owner paying himself a wage? I would not rule anything out

  • Heggers

    Give us our £28.5m back!

  • radgiegadgie

    My guess is player amortization, fair enough, they are all crap and worthless bar Perez and Janmaat who signed after these accounts anyway.

  • The proft figure is confusing, but not surpising.  We all know the type of person Mike Ashley is.
    Accountants are magicians nowadays, not just at NUFC, not just in football, pretty much in every business.  It’ll stay that way until the government start toughening up and getting stricter with what is and isn’t allowed, and with the punishments handed out to those who are a little too creative with their accounts.

  • Conman “…we’ll see the monies heading off to third parties that are held by fcb.”
    I think you’ve hit the nail on the head.  As you say, it’s just a guess at this stage, but that’s the most plausible explanation.

  • AndyMac1

    It’s hidden in the details before tax. £18m after tax is about £24m before ? There is no way this club only made £24m pre tax profit. MASH Holdings ?

  • Rollyp

    Also, I see from the BBC report that they continue to refer to the Ashley loan as interest free when Charnley referred to this at a fans forum meeting as being why the S… D….. advertising is free. Just wish reporters etc would just keep up.

  • radgiegadgie

    NUFC Tips There is only so much you can do and so much your auditors will let you get away with.

    28m quid is a lot and you can’t just put that down as undisclosed costs or a provision for for some unspecified liability you may incur in the future.  Anyway, if you reduce you profit, the other side has to hit the balance sheet unless cash physically leaves the business.

    Even if there was a management fee from the holding company, I would think it would have to be reasonable otherwise it would be looked at by the tax authorities.

    Accounts have to show a “true and fair view”, I assume they are externally audited and if they are, you can bend the rules but not burst them which hiding 20% of your profits would be.

    Without seeing the accounts though, it’s hard to say but, what I can say, 28m is not something you can “magic” away.

  • DownUnderMag

    Some worrying points:

    1) mystery on the operating cost increase with no explanation forthcoming
    2) interest free loan and free advertising for SD….surely it’s one or the other??  
    3) record profits and yet no sign of the loan ever being paid off
    4) this doesn’t account for MYM, Santon or other outgoings this season which more than accounts for the money spent in the summer…and yet no sign of any further additions in January and fans left guessing as to the clubs summer directions once again.

    When are the media going to wise up and start asking the tough questions to this oaf who owns this club and is slowly sucking the life out of it?

  • alreet

    He will hive it off as player medical bills. The fitting of the bigg ass tv. Prospective expenditure that never happened or agents fees that dont exist.
    The guy is a filthy greedy snake that cant get enough queens heads to sit on and feel bigger.
    The world again can see what we need but jabba and wing slag wont produce the readies to actually make our club even respectfull.

  • radgiegadgie

    alreet oh, there are agents fees alright.  Agents make Mash look like a philanthropist

    hopefully someone will get hold of the accounts when they are filed and then we will know where this 28m has been charged (may not have actually left the club, no one mentioned how much cash is in the bank, could all be provisions)

  • newcastle7

    No one has taken corporation tax or player amortisiation into account.I expect the tax bill to be at least six million and costs to have risen by at least four million so just wait till the full accounts are published before speculating.Our friends from down the road have lost over sixty million over the last three years and the last I saw had a forty million overdraft so they are living on borrowed time.
    Look at the good points the commercial revenue is up from Wonga and Puma the average attendance is above fifty thousand and the only debt is interest free.We are in a great position to move forward andbuy players so think everyone should be well pleased with an excellent set of accounts instead of putting the boot in.Portsmouth,Leeds and Coventry fans would agree with me.

  • Polarboy

    newcastle7 Yeah a healthy bank balance and below standard management and squad is what every football fan wants to see. Comparing us to clubs that almost fell into oblivion is not an appropriate metric.