Sunderland Banter Archive April 24 2012

24 Apr 2012 21:36:04
Some interesting reading here from the financial side of both clubs. Looks like both clubs are on the right path, nice to see.
Here it is:

Tue 27th Mar 2012 | Money & Finance

Sunderland AFC have reduced its losses by 72% according to their latest financial accounts released today.

The figures for the year ending July 31st 2011, show a vast increase in turnover of 21% to £79.4m, rising by £14m on figures announced in the previous period.

The overall loss for the financial year was reduced by 72% to £7.8m - £20.1m less than the previous year's figure of £27.9m.

Commenting on the results, chief executive Margaret Byrne, said: "We have to make sure that we are financially sound and prepare the club for the implementation of Financial Fair Play rules.

"Our financial results show that we are heading in the right direction on both fronts.”

The club's operating expenses, which include areas such as staff/player wages, match costs and utilities rose to £110.7m, which resulted in a net operating loss of £31.2m.

These operating expenses feature player amortisation costs for the period of £29.1m, reflecting the addition of 14 players to the first-team squad during three transfer windows.


"We have seen significant strengthening of our playing squad with the acquisition of 14 players during the period, culminating in a tenth place finish in the Barclays Premier League, which was always our aim,” added Byrne.

"We have also seen a growth in our commercial revenue, from areas such as concerts and sponsorship, which is something that is key to us achieving our aims."

Finance director Angela Lowes added: "Our financial results reflect a period of development for the business as a whole, both on and off the field.

"It is pleasing to see growth in some areas and the figures certainly give us a platform to build on for the future."

 Posted by: Aaron Gourley

Newcastle United’s balance sheet goes from strength to strength as its latest annual accounts for the year end 30 June 2011 show operational losses were down nearly £30m on the previous year.
2010/11 was a landmark year for the Club financially, achieving close to break-even for the first time in its recent history, whilst at the same time retaining and building a strong squad which is currently sitting sixth in the Premier League.

The overall operational loss for the year after amortisation was just £3.9m, compared to a loss of £33.5 million in 2009/10 and £37.7 million in 2008/9.

Promotion to the Premier League resulted in a 69 per cent increase in turnover, from £52.4 million in 2009/10 to £88.4 million in 2010/11, principally the result of a three-fold increase in TV revenue.

Ticket sales revenue rose 16 per cent, from £20.9 million in 2009/10 to £24.3 in 2010/11, largely the result of an increase in corporate hospitality income associated with the Club’s return to the Premier League.  Just under a million fans visited the stadium in 2010/11, the third highest attendance in the country.

The Club has worked to bring its wages-to-turnover ratio down to a long-term sustainable level. In 2008/9 wages accounted for 82.7 per cent of turnover, rising to 90.5 per cent in the Championship season 2009/10.  For the year 2010/11, wages accounted for 60.6 per cent of turnover.  

The net cash spend on player transfers to June 2011 was a receipt of £5.4 million, which includes the fee for the sale of Andy Carroll to Liverpool FC in January 2011.  The Club has since spent a further £25 million in cash on players and wages.

The Club has introduced a strict policy in respect of player transfers, with the emphasis on paying and receiving full transfer fees up front rather than accepting dated payments over a number of years.  When Mike Ashley acquired the Club in the summer of 2007, he inherited outstanding deferred transfer payments totalling £36 million for players past and present.  Under the new policy, the Club is now owed £5 million.

With the financial support of the owner Mike Ashley, the Club has now cleared all of its third party debts, which stood at £76 million in 2006/7 and incurred finance costs of £6.5 million.  The debt to Mike Ashley remains £140 million, which continues to be provided interest-free by the owner. 

Newcastle secured a new two-year shirt sponsorship deal with Virgin Money in January 2012 and announced plans to sell full naming rights to the stadium in order to maximise potential revenue streams.

Newcastle United's Managing Director Derek Llambias said:

"The Club’s financial results for the year end June 2011 are extremely strong.  We can now count ourselves amongst very few clubs across the UK and Europe who are operating at close to break-even.  What is particularly pleasing is that we have achieved this whilst also ensuring we have a strong squad sitting firmly in the top third of the table and currently pushing for a European place.

“Some of the key financial principles we set in place when Mike bought to the Club back in 2007 are now beginning to reap rewards.  Most notably, our adherence to a strict transfer policy which avoids, or limits wherever possible, the acceptance of dated payments for players bought or sold.  We believe it is a far healthier financial model to settle full transfer fees for players up front, not dated over a period of years. 

“We have dealt wisely in the transfer market and reinvested the income received from player sales into improving the squad.  Our net cash spend on player transfers to June 2011, which includes the sale of Andy Carroll, was a receipt of £5.4 million, with a further £25 million in cash spent on transfers and players’ wages since June 2011.

“We have also worked hard to address an inherited wages-to-turnover ratio which was unsustainable.  Wages now account for just over 60 per cent of turnover and we feel this is a healthy and affordable level.

“A further significant achievement has been to clear all of the Club’s interest-bearing debt, which in 2006/7 was costing £6.5 million a year just to finance the debt.  Mike Ashley continues to provide loans totalling £140 million interest-free, for which we are extraordinarily fortunate. Once again, Mike has not taken any money out of the Club.”     

Interesting reading chaps! 

This is great for both clubs.clubs carnt keep spending money they dont have

24 Apr 2012 16:56:05
they reckon the sgbs could be playing their qualifying game for the europa league at either sunderland or darlington if uefa draw them out at home first and don't let them swap fixtures as there is an olympic game on at sid james on the same night lets hope its darlo they going to. even better kick them out because they cant fulfill the fixture

Is this the best you smb's have got against us now? i kind of feel sorry for ya's lol...... good look in your battle for a top 10 Finnish :0
BAW Toon

If we did have to wipe our feet on the Stadium of S***TE for our European adventure then it would the first time that stadium has been full, barring Justin Beiber concerts. LOL SMB.

Look person try reading todays chronicle newspaper uefa have agreed to work around the olympics just for us..if we had played we would of had more fans in from us than u get on match day ha smb

Its just something out of todays local papers as for a deal with uefa nothing has been cast in stone

Cant you read try GOOGLE,ING chronicle live then press newcastle united it say uefa vows to work with nufc hence your stadium will not be filled by more nufc fans than safc which tbh would ,nr be hard for toon to do...smb

And if ye read the original post i hope ye game is played at darlo and some good news is that if chelsea win champions league then they get automatic 4th spot and is if liverpool win fa cup then they wont have to play in europa prelimineries that honour will go to spurs or the sgbs so looks like you will be playing that same time as olympic game and if ye get a french team and they dont want to give you advantage of swapping sure mr platini will back the french side

Uefa has agreed to it numty read the chronicle which means they will work around olympics...i personally dont care if we do play in your shi*e ground it will be full and lots of fans not leaving early due to the s**te they watch from sunderland team...ha..smb

Let us worry about our European adventure and you about your relegation form side. SMb.

How can you say it's a s**** ground it's one of the best in the country and we own it!! we dont rent it of the council like the Sports direct arena football club or SAFC. SGB

Own your ground or rent it makes very little difference. You own a small ground on wasteland. Buzzing for you! If that is all you can shout about then I would be worried. SMB.