The Newcastle United Club Thread **No Spoilers**

I've been saying this for ages. Barring England winning the euros like which is pretty unlikely.
I think he'll take it if offered, how many English managers wouldn't?
 
@Vandle A little follow up from your post.
Don’t want to post this in the transfer thread as that has been derailed a little.

Consider this phase one coming to an end. Walking back a lot of dismantling that Mike did. I believe the 3 year accounting period is coming to an end (I could very well be wrong) our hands are tied this window can’t buy players unless we sell.

This phase departments and infrastructure have been rebuilt. Newcastle was being run by a skeleton crew. Mighty Mouse was runing most departments lol. Investment in staff thoughout- commercial teams, hospitality etc. Academy is being rebuilt and quite a bit of money has been spent on it already. There’s been quite the influx of young players. The woman team is also seen as an area to improve. We had none but Amanda has took that back in house. Investment in the current training ground

Since the takeover our revenues have exploded TV, Match day and Sponsorships. 40% increase each season and we are now sitting at 250million. The clubs growth also means runing costs have exploded but I believe we are closer to the 70% of revenue if the PL vote in the Ueffa model We were at 90 odd % we made a record lost due to the large investment in players.

They have built a solid foundation.

We are entering Phase 2. Next years financial figures will show the champions league money and the Sela (25m)deal and other deals the club has made. Easily pushing us over 300m. Champions league prize money is probably around the 40m mark since we had zero coefficient points.

Next season we are taking back the club retail in house with Adidas being the supplier. Mike sold this off to Castore. Adidas sponsorship deal is our biggest in our history. They have given us the elite club status.

Elite Club status = bigger range, Retro kits, better quality kits, front of store space world wide. This will have a massive effect in our retail revenue.

The club has started to build stack outside the stadium to further increase revenue.

Multiple outlets are reporting that the club is set to announce quite a lot of new sponsorship deals in the summer.

Phase 3 - training complex and New stadium or St.James redevelopment with all the increased revenue that will bring.

New Stadium makes the most sense but they will and try to redevelop first. Hence all the studies.
 
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Yeah was probably the wrong place for me to put it.

I get all that and its going to take some time to unwind some of the changes Ashley made however my point still stands. Once we are maxed out in sponsorships etc the only way forward is to find and develop players, that seems to be what these rules are pushing teams towards or at least rewarding them for it. Which is a good thing tbh. Like I said though it is likely going to take a decade to bear any fruit. The current crop of kids, like most of them before them are likely destined for non league teams after a stint in the Scottish third tier.

Couldn't disagree more on the stadium though! Would be the last thing I would be spending money on. Is the cost of that included in the FFP figures?
 
@Vandle depending on how it’s funded no facilities, infrastructure and youth development is excluded from FFP

If a stadium/infrastructure is built on loans then only the interest I believe can affect FFP once’s it’s completed.

After I posted that yesterday I seen advertisements for jobs for under 15 coaches and info that the club is seeking training gear sponsorship and warm up sponsorship.

Club just needs to continue on its path. Champions league qualification last year was outstanding but clearly we weren’t ready. We have a very competitive First 11 but very little squad depth. The drop off in quality is steep. The first 11 hasn’t even been completely refreshed. That’s down to Eddie that he was able to transform relegation fodder.

We also had zero coefficient points hence the group of death and at the low end for prize money. Any European football is better than none.

As Woppy pointed out there’s a serious amount of money about to be saved with players contracts expiring this summer.

If the 3 year’s period is coming to an end that could mean a rebuild is coming but not a massive one as i doubt the club wants to front load all of its transfer power in 1 or 2 windows

Next cycle 2024-2027?
 
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Bigpig said:
@Vandle

As Woppy pointed out there’s a serious amount of money about to be saved with players contracts expiring this summer.

If the 3 year’s period is coming to an end that could mean a rebuild is coming but not a massive one as i doubt the club wants to front load all of its transfer power in 1 or 2 windows

Next cycle 2024-2027?
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yeah our first big spend of the 3 year cycle drops off on July 1st, without outgoings I still don’t see us doing any major business this month and any significant summer signings won’t be done until after July 1st. Remember it’s only around £20m of amortisation that drops off though so don’t expect to spend fortunes.
 
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Bigpig said:
@Vandle depending on how it’s funded no facilities, infrastructure and youth development is excluded from FFP

If a stadium/infrastructure is built on loans then only the interest I believe can affect FFP once’s it’s completed.
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It makes no difference how it's funded. All costs for infrastructure work are exempt from FFP/PSR, even the interest on any loans. And just in case you cite Everton's situation, their problem was the loans and subsequent interest were not for the stadium - they were loans for general working capital that they tried to dress up as stadium costs but their own loan applications explicitly stated that they were not for the stadium.

And on your question/query about the 3 year accounting period - it's a continuous thing. This season is the last season of the 21/22, 22/23 & 23/24 cycle, you'll then move into the 22/23. 23/24, 24/25 cycle next season. If you haven't, you should read Swiss Rambles analysis of your accounts. Based on his calculations you met the PL's PSR limits by the skin of your teeth for the 3 year cycle ending 22/23 - table below. The good thing is it will have forced the club to make a PSR profit of circa £15m this season and assuming they are on course to do that (remembering it's a rolling target with the 21/22 season no longer counting for next seasons cycle), Newcastle will then be able to record a circa £50m loss in the 24/25 season.


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@BaZ87 it was actually Swiss ramble where I got the info on loans. He said it’s only the interest on completed infrastructure that can go against FFP. Might have been outdated.

Like I said didn’t know if the 3 year period was set or rolling so thanks for clearing that up.

I had a good look at the Swiss ramble Newcastle up to the point it’s pay walled. Might just click the free trail!!

Edit: on the new rules that’s might be voted in. Will the penalties also follow? I seen a nice chart. Example first time offenders fines etc second offence bigger fine then bans and point deductions and so on.
 
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Bigpig said:
@BaZ87 it was actually Swiss ramble where I got the info on loans. He said it’s only the interest on completed infrastructure that can go against FFP. Might have been outdated.
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It's more complicated than that. The stadium doesn't need to be completed, just planning permission has to be granted and once that is, all costs incurred (including interest payments) can be capitalised and therefore they're not charged on the profit and loss statement. Furthermore, as we saw from the Everton case, the PL ultimately allowed Everton to exclude pre-planning costs from their PSR calculation. There is/was a lot of misleading comments from Everton fans on this very point as the PL ended up charging Everton partially based on interest charges which Everton claimed were pre-planning stadium costs. What these Everton fans don't understand or avoid telling you is that the PL didn't change their mind on the principle of excluding pre-planning costs but that Everton had mislead the PL regarding these loans and they weren't stadium related costs at all. In short, Everton told the PL that £2.2m of interest was pre-planning stadium interest, the PL said ok then we'll exclude it but then the PL found out that the £2.2m was not pre-planning stadium interest but just Everton borrowing money to keep the lights on.

edit: page 22 and 23 of the written reasons for the Everton charge - the PL allowed pre-planning interest to be exempt from PSR calculations but Everton's interest payments were not stadium related so were subsequently inlcuded in their calculation.

edit 2: Just to confuse things, were you talking about any interest charges relating to building the stadium or any debt taken on by a club but secured against the stadium once it's (near) completed? As above, costs of building the stadium are exempt however what often happens with large construction projects is clubs will scrimp and save to fund the build or at least the majority of it and then once the stadium is completed and a safe asset they will take out a cheap loan secured against the stadium to repay themselves and or any short term loans they took out during the build. Interest on these long term loans after the build will be included in the PSR calculations. Although it's very possible that the PL would allow them to be excluded if push comes to shove, as they did with pre-planning costs in the Everton case.

And all of this was (probably) entirely pointless as the PL are likely to move away from PSR and to a squad cost percentage where the only two expenses that will matter are wages and amortisation.
 
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Miley has signed what the club are calling a long term contract. No mention of the length. Presumably its a mega pay rise, good luck to the lad it's well deserved.
Meanwhile two other amazing academy prospects have left on a permanent basis, one to South Shields and one to Inverness!
 
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