NUFC apparently take loan from Barclay's to fund transfers

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NUFC apparently take loan from Barclay's to fund transfers

Post by CIH » Thu Jan 31, 2019 11:26 pm

Not sure what to think of this, or completely understand it in all honesty. From the sound of it we have essentially taken an advance from the summer premier league revenue. Although since they dropped the name, I didn't think Barclay's still sponsored the prem. Whether that' sthe case, and if it's common practice with other clubs, I've no idea. Does beg the question though as to where the money from the previous summer(s) league funds has gone.

https://www.chroniclelive.co.uk/sport/f ... s-15763997

And yes, it's the chronicle, so take as you will.
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Newcastle United took out a loan with Barclays Bank to help fund recruitment in the January transfer window.

But the club and third party sources both insist there is nothing untoward about the arrangement, which is similar to the financial facility that many Premier League clubs enter into.

United arranged the facility with Barclays in effect to advance them the Premier League central prize money that is due towards the end of the January transfer window and the summer. It appears it has been partly used to pay for the Miguel Almiron transfer fee and cover some costs.

While fans may ask where the money paid in August to them has gone – along with the money recouped from Aleksandar Mitrovic and further sales in the summer – the club’s position is that there are “peaks and troughs” in their cashflow during the season which need to be “managed”. Arranging this external facility is one way of doing it, rather than borrowing money from Mike Ashley – which they did during the Championship season.

READ MORE
Newcastle United deadline day LIVE - Winger set for Championship club; Almiron deal explained

The facility is referred to as an “arrangement” by the Premier League. Barclays will pay Newcastle the amount due to them by the Premier League in one lump sum and, rather than distribute them to Newcastle, they will pay back the bank.

The money has been used to pay for transfers rather than paying Ashley back his loans, although some club funds have been diverted for that this season. Newcastle senior officials have always insisted that Ashley’s loans do not have an impact on United’s ability to sign players and that there was money to spend on the “right players”.


The club face questions about where the money raised in the summer has gone and know that the £16million outlay on Almiron – along with a £1million loan fee on Antonio Barreca – will not be enough to answer all of those queries.

READ MORE
When will Miguel Almiron make his Newcastle United debut? Will he be available to face Tottenham?

There are plenty of questions to answer now that the trading period is over for Premier League clubs.

Peter Kenyon’s takeover bid has never formally ended but it’s understood that Ashley no longer believes he can fund the deal, and the club’s primary focus will be on retaining the manager. How Ashley deals with the takeover situation in the next few weeks will be interesting – there’s a chance he may speak and clarify the club’s short-term plans.

United sources insist that staying in the Premier League and Rafa Benitez staying at the club would see him handed further funds in the summer. But with five months until he’s out of contract, there is plenty of work to be done on that front.

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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Aldridge Prior » Thu Jan 31, 2019 11:34 pm

CIH wrote:
Thu Jan 31, 2019 11:26 pm
Does beg the question though as to where the money from the previous summer(s) league funds has gone.
We know exactly where those funds have gone <ashley>

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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Speedo » Thu Jan 31, 2019 11:58 pm

Honestly, Premier League clubs do not typically hold a lot of cash - this is almost certainly not a big deal.
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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by lassassinblanc » Fri Feb 01, 2019 6:28 am

Speedo wrote:
Thu Jan 31, 2019 11:58 pm
Honestly, Premier League clubs do not typically hold a lot of cash - this is almost certainly not a big deal.
Exactly which bank do you think Newcastle use
<ayo>

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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Bodacious Benny » Fri Feb 01, 2019 7:01 am

Speedo wrote:
Thu Jan 31, 2019 11:58 pm
Honestly, Premier League clubs do not typically hold a lot of cash - this is almost certainly not a big deal.
This. I suspect this is very common practice so not sure why people are getting their knickers in a twist about it.
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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Sir Bobby » Fri Feb 01, 2019 7:45 am

This is more like consumption smoothing than risky borrowing. We know our future cash level for summer so we’re borrowing some of that now to try and secure a higher future cash level (through survival) whilst also not putting ourselves at risk by relying on finishing in a certain position to be able to pay back the loan - if we get relegated we’re still in a position to pay back the loan. It’s a non-issue in terms of risk, but it does make you wonder where our money from the last year or so is... paying off some of our loan to Ashley, maybe?

If it isn’t doing that and is simply only meant to be covering operating costs then there’s something going on. We can’t have the 19th highest revenue in the world, one of the lowest wage bills in the Prem and still only be just covering our costs. We have a revenue stream higher than every other English team except the big 6 and Everton and a wage bill lower than all of the Prem except Cardiff, Huddersfield and Burnley. Our net transfer expenditure for the season is only about £10m (even after this transfer) which is the third lowest in the league. The two teams we’re sandwiched between in revenue (Everton and West Ham) have wage bills double ours and are still able to have a net spend of £66m and £80m respectively.

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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Colback's Orange Tufts » Fri Feb 01, 2019 8:50 am

Yeah its working captal facility. Not a huge deal.

I know some clubs have had massive issues with debt but a club with no (external) debt is inefficient cos debt is cheaper than equity.
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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by UlversToon » Fri Feb 01, 2019 10:49 am

.....or maybe he needed the money for this signing!

https://www.bbc.co.uk/news/business-47086914

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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Donkey Toon » Fri Feb 01, 2019 11:35 am

Nothing to see here. But some fans will go into a frenzy anyway because they love to do that when the finances are involved, even though they don't have enough information to draw a conclusion one way or the other.

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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by CIH » Fri Feb 01, 2019 12:34 pm

Donkey Toon wrote:
Fri Feb 01, 2019 11:35 am
Nothing to see here. But some fans will go into a frenzy anyway because they love to do that when the finances are involved, even though they don't have enough information to draw a conclusion one way or the other.

And I'm definitely in that second half. I don't understand much of it, and was curious to see if it was anything or not. Seemed interesting and ripe for discussion. More that's come to light, it just seems like typical chronicle stuff.

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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Remember Colo » Fri Feb 01, 2019 3:35 pm

Sir Bobby wrote:
Fri Feb 01, 2019 7:45 am
This is more like consumption smoothing than risky borrowing. We know our future cash level for summer so we’re borrowing some of that now to try and secure a higher future cash level (through survival) whilst also not putting ourselves at risk by relying on finishing in a certain position to be able to pay back the loan - if we get relegated we’re still in a position to pay back the loan. It’s a non-issue in terms of risk, but it does make you wonder where our money from the last year or so is... paying off some of our loan to Ashley, maybe?

If it isn’t doing that and is simply only meant to be covering operating costs then there’s something going on. We can’t have the 19th highest revenue in the world, one of the lowest wage bills in the Prem and still only be just covering our costs. We have a revenue stream higher than every other English team except the big 6 and Everton and a wage bill lower than all of the Prem except Cardiff, Huddersfield and Burnley. Our net transfer expenditure for the season is only about £10m (even after this transfer) which is the third lowest in the league. The two teams we’re sandwiched between in revenue (Everton and West Ham) have wage bills double ours and are still able to have a net spend of £66m and £80m respectively.
To your second paragraph, even though we are high ranking with respect to club value and revenues, I think it highlights how in the hole and operating at a loss most clubs are. Now I can't say whether we should or shouldn't need a loan to pay for Almiron's fee, but I don't expect many clubs actually pay out of net revenues, but instead are digging deeper losses.

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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Bodacious Benny » Fri Feb 01, 2019 3:46 pm

I got a loan from Sainsbury's to get a new kitchen. £11k over 5 years, only have to pay back £11,800 in total - ideal <cheers>
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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by PTAO? » Fri Feb 01, 2019 3:51 pm

Bodacious Benny wrote:
Fri Feb 01, 2019 3:46 pm
I got a loan from Sainsbury's to get a new kitchen. £11k over 5 years, only have to pay back £11,800 in total - ideal <cheers>
That's insane! You're beating inflation <laugh>

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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Bodacious Benny » Fri Feb 01, 2019 4:01 pm

PTAO? wrote:
Fri Feb 01, 2019 3:51 pm
Bodacious Benny wrote:
Fri Feb 01, 2019 3:46 pm
I got a loan from Sainsbury's to get a new kitchen. £11k over 5 years, only have to pay back £11,800 in total - ideal <cheers>
That's insane! You're beating inflation <laugh>
Yeah took it out 2 or 3 years ago and couldn’t believe how cheap it was!
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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Colly » Fri Feb 01, 2019 4:29 pm

Are you sure you didn't just rob them?

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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Bodacious Benny » Fri Feb 01, 2019 5:02 pm

Rob is such a strong word, I prefer relieved them of their capital.
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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by jimileysbaldhead » Fri Feb 01, 2019 6:06 pm

Bodacious Benny wrote:
Fri Feb 01, 2019 5:02 pm
Rob is such a strong word, I prefer relieved them of their capital.
I'm assuming you were too much of a gent to use your Nectar card.
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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by overseasTOON » Mon Feb 11, 2019 5:37 pm

Maybe next season we can borrow some cash off of that new bank; Aaron Ramsey.

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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Remember Colo » Mon Feb 11, 2019 8:12 pm

I had no idea Juventus paid wages like that (except maybe to Ronaldo) - or that Ramsey could ever earn them!

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Re: NUFC apparently take loan from Barclay's to fund transfers

Post by Colly » Mon Feb 11, 2019 8:49 pm

No transfer fee, so the player can demand more. Daft but how it is.

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