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| 2006 Comment |
Newcastle United - Costs
This graph shows the breakdown of the money the club has spent since 1998.
The total expenditure since 1st August 1997 is roughly £679m, £57m more than the club have taken in.
The description in the accounts of the various costs are in accountancy-speak. I have tried to simplify these for this section. The explanations are as follows (if you have better descriptions, please send them in):
Ground depreciation: The decrease in the value of the ground due to wear and tear
Payroll: the amounts paid to employees by the club. This includes pension payments.
"Other expenses": this seems to cover the cost of putting on matches
Amortisation: see the specific page which explains this, but essentially it is the player transfer costs spread out over the life of a player's contract, it also includes profits and losses on player transfers
Finance: this is the interest payments made on the loans taken out
Hall & Shepherd: this is the total of the money they have taken out of the club. This covers their dividends, salary, and shares bought from them. It does not include any of the amounts listed in the "director deals" section, so for example £1m paid to Bruce Shepherd's company is not included here.
The Finance and Halls & Shepherds (H&S) sections are separated out to highlight the relevant amounts paid out. The club have paid out £26m in interest in the same period they have given H&S over £30m. The club has borrowed money, and made interest payments of £26m on those borrowings in order to give that money to H&S.
