The question on the lips of many Newcastle United fans is what’s happened to all the profits?
I’m not just talking about the transfer surplus, you have gate receipts, sponsorship, instalments from player sales and most importantly, instalments from £125m prize money. It’s fair to say we are looking at close to £200m.
I know that there are overheads and a large wage bill but everything into account, there ust be the best part of a hundred million or so floating around somewhere,
I would like to know where and the club would do well to share this. Accounts in a year or two’s time will mean nothing if we do a Sunderland.
No doubt the purists will insist that money must stay in the club and there is no scope for wrong doing, whilst the cynics will point to Mash Holdings and the purchase of House Of Fraser roughly matching our profits. I’m not claiming either scenario but would like 3 questions answered:
- Where is the money?
- How does money find its way into holding accounts?
- Once in there, must it stay or can it be used for another concern?
Three straight questions and I’m sure that there are people out there that have the answers.
I would ideally like a club representative to answer the questions but any of the readership can have a go.
For what it’s worth, my opinion is that it will be there in the club but distributed in a way that makes sure Rafa certainly doesn’t get ‘every last penny’.
It’s clear that everything at the club is based on spreading funds out, for example buying on a one payment basis but selling to get instalments back. It doesn’t matter really but what is true is that the squad is weak, with a decent first team if avoiding injuries and/or loss of form. Relegation material to be honest.
The biggest question of all is what financial strategy risks losing hundreds of millions through relegation, when a reasonable investment used by a top manager would avoid this?
We all know that it’s Mike Ashley’s financial strategy for NUFC. He invests after relegation to protect his investment, it’s worked until now but the next relegation may provide a different outcome, maybe even a different strategy.
Can anyone answer the three questions without using bad language?