NUFC - Saving for a rainy day?
Newcastle United has had it's fair share of controversial characters,with our owners or chairmen being right up there with the very best. Our current owner, Mike Ashley,no different with the scenario here being the football equivalent of marmite..
Anyway, steering clear of the controversial moments and concentrating on the 'good' side of our owner, We at ToTT will analyse the business side of his time here...
Reading between the lines,he's been labelled as the red adair of Tyneside by his 'saving'of the club from possible administration (if rumour was to be believed) but the only 2 possible scenario's surrounding his decision to buy in backing up this claim are either he really didn't do due diligence and has had to make up a brand new business plan year after year based on results or he knew the situation here and has exaggerated it to make himself look better.
As much as I've tried, i just can't believe he came into this club 'blind' as the fans knew the score here and so did football itself.. Someone somewhere would have told him..
So, moving on to the financial side of things with a high wage percentage to turnover in 2007 to cost-cutting in a massive way after relegation in 2009. Yes finances have taken a turn for the better here. With mentions of breaking even last year also..
Transfer activity in Ashley's time has been frantic to say the least and the figures up until the promotion season, have him spending just short of £50 million on players but recouping around £68.5 million. A PROFIT OF JUST SHORT OF £19 MILLION.
Since promotion though, this profit margin has rocketed with an up to date figure (including Cabaye) of a spend totalling £14.5 million with a sales recouping of £38.5 million (including Nolan, who has a clause in his contract for add ons), SO A PROFIT OF £24 MILLION HERE. Not to mention the other players who's contracts have expired and been released.
A total profit of £43 million on transfers alone in 4 years, plenty of staff cuts, wage reductions etc.
So, what is it you are saving up for Mr Ashley? Are you repaying yourself on the QT, Preparing a lump sum transfer fee for a World star or is it just for a rainy day?