Newcastle Thread

Net debt fell last season from £150 million to £130 million, comprising a £140 million loan from Mike Ashley less £10 million cash balances. Since Ashley arrived, the gross debt has significantly increased from £77 million in 2007, though he also had to clear the mortgage on the ground. Importantly, the club now has no external debt (it had a £36 million overdraft as recently as 2009), which not only provides more stability, but has also saved considerable sums in interest payments. These were £6.5 million in 2007, but would now be around £11 million a year following the rise in debt.

Although Newcastle’s annual report initially stated that Ashley’s loans would carry interest at LIBOR + 0.5%, since 2009 they have all been classified as non-interest bearing. The 2010 accounts said that £12.3 million was repayable in August 2010, £16.5 million after more than a year and the remainder on demand, but no repayments have actually been made to date – though it is likely Ashley will want the loans repaid at some stage.

The previous ownership had mortgaged Newcastle to the hilt, securing loans on virtually all the club’s assets (training ground) and future income streams (TV, sponsorship), and also left Ashley with deferred transfer payments of £36 million, some of which was owed on players who had left the club. Following the implementation of a new policy whereby transfers fees are paid up front, the club is now owed £5 million.

Despite his occasional crass behaviour, there is no doubt that Mike Ashley has put his hand in his pocket to keep the club going, as its cash flow has been consistently negative before his financing. There is still much distrust of the owner, leading Llambias to emphasise in the results statement, “Once again, Mike has not taken any money out of the club.” In fact, he has invested £273 million in total, made up of £133 million to acquire Newcastle plus £140 million of loans.

Since Newcastle United were floated on the Stock Exchange in April 1997 the Hall family and Freddy Shepherd have earned from the club as follows:

Sales of shares by Cameron Hall, Sir John and Douglas Hall's company:

December 1998 Sold 6.3% to NTL: £10m

December 1999 Sold 3.26% to NTL: £5.28m

December 1999 Douglas Hall sold 0.39% to NTL: £0.57m

June 2003 Sold 11.4% to Newcastle United itself: £4.5m

Total earned by Hall family in sales of Newcastle United shares £20.35m

Sales of shares by Freddy Shepherd Nil

Shepherd and his brother, Bruce, have increased their shareholding, via their company, Shepherd Offshore, from 7% at the time of flotation to 28% now

Dividends paid by Newcastle United plc to shareholders 1998-2005

Total to Halls: £13,698,280

Total to Shepherds: £5,489,239

Salary packages paid

Year Hall Shepherd

1999 £23,533 £23,533

2000 £35,000 £75,000

2001 £110,000 £232,868

2002 £524,257 £591,639

2003 £591,667 £668,920

2004 £635,465 £717,145

2005 £495,951 £552,954

Total £2,415,873 £2,862,059

Totals made from Newcastle United

Sir John, Douglas and Cameron Hall: £36,466,153

Freddy Shepherd and Shepherd Offshore: £ 8,351,298

Total £44,817,451

He has over £100m of his own personal money sunk into the club. - And has waived loan repayments and interest. How is that not spending money? I'm presuming a lot of the additional TV money was spent on January and to cover the increased wage bill. And the rest will go towards paying off Ashley. I'm much more comfortable with Newcastle being prudent, with the clubs money, rather than loading up on debt and pushing our wage bill to unsustainable levels.

I don't understand how you can be bored watching Newcastle. I've literally never been bored watching Newcastle in the league, no matter how bad the performance is, I'm far too emotionally invested. Anyway Newcastle's football has been fantastic this season according to the stats. Least long balls and second most crosses and through balls. Which is extremely impressive considering we've only actually turned up for two of the three games.

Since finishing 5th, Newcastle have spent a further £17m on transfers, net. So Newcastle have definitely 'reinforced' the squad. While the club repaid Ashley £11m. Newcastle's ticket revenue has also fallen, due to ticket pricing schemes, to make footballer a bit cheaper for the regular football fans.

Repaying the loan needs to be done. And there will never be a 'right' time to do it. Fans will always think deferring the loan another year is the right option.

I know our football hasn't been fantastic, but I was pointing out that Newcastle have done the least amount of long balls, while you're saying Newcastle are a long ball team. (And also most combined crosses and through balls)

Some progress has been made but we play less long ball with Shola out of the team.

The ticket revenue has fell because the attendances have fell, prices are very similar.

We spent heavily in January because we were in severe danger of being relegated - we didn't spend at the start of the season when it was neccesary.

While the average attendance at St. James' Park has risen to 49,936 - an increase of 2,190 on last year, ticket revenue has fallen by 7% after the club froze season ticket prices with its ten and nine-year season ticket deal and continued its commitment to making football affordable through a variety of ticketing initiatives

Fabricio Coloccini (captain):

"We see what other teams have done and feel it could be us. We want to win something as players, of course we do. We are hungry to win something, so we have to focus on this cup.”

Alan Pardew (manager):

"I think our fans want to win something and I am very much aware of that. I want to win something too.”

John Irvine (director):

"The cup competitions are not a priority for the club."

He's garbage.

Can't defend.