Transfer Funds Available Really Only £20M? – NO

There was some seemingly bad news reported today, that the transfer funds available to Keegan in the summer, will only be £20M, but it was also reported only in the venerable Daily Mail.


Kevin Keegan – £20M available?

Yes, we know, it’s our second dig at the Daily Mail today, but that paper has been almost criminal in its reporting on Newcastle, and reached new journalistic depths yesterday, with one of it’s reports.

But if we look at what they say, it isn’t as bad as it first sounds. Let’s take a closer look and assume the £20M figure is true.

First of all it would be £20M plus whatever Kevin can get from players he sells.

Well, we can get money for Ameobi (£3M), Rozehnal (£2M), N’Zogbia (£8M) and say we sell Alan Smith (£6M).

If we assume that, and yes we know some of the transfers could be more or less, but let’s say those are just averages for this exercise, so Kevin could bring in £19M .

So he really has £39M available, and don’t forget when we sign a player for say £20M, it’s not the full £20M out of those funds.

For Modric – who was around £18M we were paying only £6M for him this year, and then £6M over each of the next 2 years for him.

If we assume that each transfer fee will be paid like that one, then you can get a lot of good players in for £39M. One way to look at it is to say it’s 3 times £39M divided by the full transfer cost of each player we get.

In other words it’s equivalent to £117M (3X39) if we were to take the full £18M transfer fee for Modric, just as an example.

So £20M isn’t too bad, especially when Kevin says he only needs 3-4 class players and then on top of that we can pick up some free transfers. Sol Campbell is a good example of one of the free agents we may get.

And obviously the advantage to Newcastle for splitting any deal over 3 years is we get new funds every year from TV, gates etc to help us pay those transfer fees. Of course as one of our readers, Marosh, rightly points out in the comments , not every club will want to do this, they’d like the money up front if at all possible.

So £20M may not sound as bad as it initially looks – now does that now qualify the Daily Mail report on Newcastle as positive?

Just kidding. 😀

What do you think?

Comments very welcome.

47 comments so far

  • ObaFan2

    May 10, 2008 at 10:35 AM

    Comment #1

    I like your way of thinking on this one Ed but it’s a bit like getting a loan imo, MA will be paying more in the long run for players.

    He’s a business man and he may well keep a tight hold of the reins on any transfers. Like you say he has to get the wages down in general to make us more viable.

    However we have a small squad already, 3 players gone already and maybe 4 or more to go. I just hope the youngsters are going to be up to the job because I can see us needing them next season too at times, which might not be such a bad thing.

    We would stuggle imo to get anywhere near 5th as Spurs, Man C and others are able and/or willing to spend alot more.

  • marosh

    May 10, 2008 at 10:36 AM

    Comment #2

    Ed, not everybody is willing to make these kind of deals. Most of the clubs want the whole price immediately so you cannot look on it this way.

  • faustino

    May 10, 2008 at 10:41 AM

    Comment #3

    The other way to achieve that illusive 60% is to make more money which means a higher league position and trying to win something!! The league cup is not out of our reach next season imo

  • Hadji

    May 10, 2008 at 10:45 AM

    Comment #4

    I dont think that this whole thing is true,even Sunderland will spend more than us in the summer.Maybe Daily Mail wants to be our shirt sponsors.LOL

  • rlw

    May 10, 2008 at 10:47 AM

    Comment #5

    20mill thats crap

  • GraemeR

    May 10, 2008 at 10:47 AM

    Comment #6

    I suppose it could also be a case of ‘playing your cards close to your chest’. After all as soon as it is known we have 50M to spend the price asked for doubles – whereas if you say you have 20M the price reflects that.
    You just have to look at chlski and some of the ridiculaous fees they have paid for bench warmers – Duff been a good example

  • craig chisholm

    May 10, 2008 at 11:06 AM

    Comment #7

    again its the pigging mail!! forget the mail, its total pap, drive. this journalist COLIN YOUNG should be reported, and we can…… can contact the editor of the mail with any complaints. i think we should all send in letters of complaint about this nobber. its just any old crap to make a buck.. look at the sensationalisum ,words like ‘fragile truce’ and ‘has been told under no uncertain terms’ blah blah. where does he get this shite from?? not a singel quote, nothing. he is trying to cause trouble and ntohing more. as for the 20 million, have you ever heard of anything so ridiculous in all your life!! i think ashley has not put a definate limit on it and thats cos he does not need to. he owns every last inch of us and its all bought and paid for in cash. He has the funds to what the hell he wants at the end of the day. i think he will back keegan to be honest and i would not be suprised if we do see at least one mega name coming in…..

  • piman

    May 10, 2008 at 11:09 AM

    Comment #8

    I agree with GraemeR, and IMO MA will spend more if we can attract players. If we got the nod from a real class player, there will be money there I feel sure.

    Or is that me being hopeful?

  • piman

    May 10, 2008 at 11:13 AM

    Comment #9

    Let’s not buy any paper which runs negative stories on the toon! hit them where it hurts.

  • SuperShearer

    May 10, 2008 at 11:24 AM

    Comment #10

    craig chisholm totally agree with you mate and indeed when I saw the article on line I posted a comment on the Mail website saying exactly that and demanded that Mr. Young either apologise for making things up or proved that he had a source in the meeting….I doubt I will get a reply from such a spineless idiot.

  • Marguerite

    May 10, 2008 at 11:35 AM

    Comment #11

    I too have posted that filth rag themail (3 separate times to get my point across on one topic alone) but they are such liars and cowards they will not print anything like that. It takes a lot but they are worse than the sun by a mile.

    It needs the club itself to ban them from appearing at press / news conferences at SJP. Fergie has regularly done this to members of the press who get out of line.

    Better still let us sue the a***** off them.

    What I would like to know is just exactly what is their agenda in continuously printing this inaccurate drivel against our club?

    Is there anyone from the mail who is man enough to stand up and comment? I think not.

  • Ed Harrison

    May 10, 2008 at 11:51 AM

    Comment #12

    marosh – yes I know, you’re right – not every club will want a deal like that – but it was just meant to be a simple assumption to make a point.
    obviously the advantage to Newcastle is we get new funds every year from TV, gates etc to help us pay those transfer fees.
    But we have no idea if it’s just £20M either – hopefully it’s more than that. 😀

  • Ed Harrison

    May 10, 2008 at 11:55 AM

    Comment #13

    marosh – I added a little bit related to your comment – and why it’s obviously better for Newcastle to spread the payments over a number of years.


    May 10, 2008 at 12:01 PM

    Comment #14

    Ashley is a billionaire. I think he should put up or shut up. If he is serious about getting this club into the top places in the league he needs to cough up.
    Yes he has spent big on debt etc – but as fans we’re not going to be singing about that from the terraces are we? Howay Mike – save a few quid – don’t go to the Bigg Market the night – spend it on a player or two!

  • Jameso

    May 10, 2008 at 12:09 PM

    Comment #15

    We need 5 top players to come inn and maybe more than that if 3 or more leave!

  • BobKnight

    May 10, 2008 at 12:27 PM

    Comment #16

    I don’t see Keegan selling Smith, let alone for 6m.

    Sadly I think Keegan, like Big Sam, genuinely like the guy and think he’s quality. So that means we’re stuck with him again 🙁

  • pit yaka

    May 10, 2008 at 12:32 PM

    Comment #17

    20m is ridiculous, Ashley needs to get his money out. If he wants to really challenge the big 4 then he needs to put his money where his mouth is! At least Shephard had the bottle to try. If he doesn’t have the funds available to try for the title then best he sells the club! He’s making a right hash of it, with the likes of Denise Wise etc. IF he ever puts Wise in charge he’ll feel the real wrath of the Geordies and will need a pope mobile to go on the hoy doon the Big Market. He’s pussying around too much for my liking.

  • marosh

    May 10, 2008 at 12:41 PM

    Comment #18

    Thanks Ed.
    If it would depends on me the players would come to us for free 😀 but unfortunately it’s not like that 🙁 .
    Now I’m thinking – what difference does it make when we split the price for player to three years ? Next year we also want to buy some player so it will be only a circle. I know – it helps in the first year but next year with a budget we would have to pay for players that arrived previous year. What do you think ?

  • robertsa

    May 10, 2008 at 12:44 PM

    Comment #19

    thats not that bad cos big sam all together if you take away what he sold sam only spent 4million

  • toonlover

    May 10, 2008 at 12:46 PM

    Comment #20

    true but robertsa we are building a team sam was changing one

  • Alan

    May 10, 2008 at 1:09 PM

    Comment #21

    If you look at what has been reported in the mail, you have to wonder whether they have a source very close to big dennis wise. In which case its not the mail we should worry about.

  • Gareth

    May 10, 2008 at 1:18 PM

    Comment #22

    My theory on why the Mail hates us so; they consider us, all those miles away, to be virtually foreign, and as such virtual immigrants into the Premier League, asylum seekers from Scotland in their eyes. Obviously a cardinal sin, and our presence in English competitions is to be resented. Plus maybe, given their obsession with it, they’re also indirectly blaming us for drops in house prices with our association with Northern Rock…

  • Gareth

    May 10, 2008 at 1:23 PM

    Comment #23

    And like Marguerite I too have posted to the Mail and have no expectation of it being published. in fact, I’d be willing to wager that many people have posted to it, and yet there are NO comments displayed – funny, that…

  • Toon1978

    May 10, 2008 at 1:26 PM

    Comment #24

    I really hope this report is not true. What does M.Ashley want for god sake, cut the wage bill which could see Owen leave and Taylor as well as N’Zogbia. To top all this off we have 2o million to spend if this is true i wish we had Shepard back at least he backed his managers. M.Ashley swindles his money in the Casinos and rakes in thousands every week in gate money, charge an absolute fortune for season tickets YET 20 million is the report haha what a joke Sunderland will probably have 50 million. KK is talking about 5th we we struggle to stop in th EPL if this amount is true. GET REAL ASHLEY if we are going to be a top club we need to pay big wages for the likes of Owen and keep our youngsters in Taylor,N’Zogbia. Times are not looking good IMO we are in a slippery slide to oblivion because we have a greedy owner who in reality IS NOT A NEWCASTLE UNITED FAN he just bought NUFC for a business and hopes to bring youngsters in,make them into superstars and sell them on at a profit NEXT ARSENAL THEY SAY HAHA my arse NEXT QPR more likely. SPEND THE MONEY ASHLEY OR F/OFF

  • Toon1978

    May 10, 2008 at 1:36 PM

    Comment #25

    Also Chelsea are on about spending 100 million i know 99% of the clubs in the PL cannot keep up with that but most clubs will 50 million in the summer. We are falling furter and further down the pecking order.

  • craig chisholm

    May 10, 2008 at 1:37 PM

    Comment #26

    i think they will spend money, in fact, they are trying to. no-one wants to come to us at this time. mind you, we could have tied up the modric deal if we had given the money they wanted for him in the first place. they only went public when we didnt match their valuation on him, i dont blame them, they thought , well if modric is going to go, we might aswell make it public. look at the deal now that WILL fall through, we are in for veloso, so what do we do… we do it again, go in 5 million under their valuation so straight away his club come out and tell the world that we are in for him. we have learnt nothing form the modric fiasco. i think we should go for proven players that are disgruntled at their current clubs, such as crouch, SWP, wayne bridge, Barry and also tie down our own outstanding talent in zogs, taylor, martins and our only world class player, owen. i would love to see zogs playing every week as i know most of you guys would. i can only presume he has a shit attitude.

  • Leo

    May 10, 2008 at 1:37 PM

    Comment #27

    117 millions would be canny good haha, unlikely but would be outstanding

  • Toon1978

    May 10, 2008 at 2:06 PM

    Comment #28

    Craig Chisholme i cannot see us getting VELOSO if like they say we have 20 mill it looks like we will be going for quantity not quality because the squad we have is paper thin already with 3 players away to make things worse. We will have to bring in 3 players to begin with to bring the numbers back up which will bite intt the funds to start with THEN we have to think about strengthening the squad with very little available. Take into account WE MAY loose OWEN and TAYLOR not trying to put things on a downer but this is the way things are looking. To me we are going down hill. IF Ashley has ambition for NUFC then he would offer alot more then 20 million.

  • Ian

    May 10, 2008 at 2:09 PM

    Comment #29

    We really have to stop getting worked up about reports in the Mail for God’s sake.

    One minute they’re telling us Ashley is going to berate Keegan for not being ambitious enough. The next they’re telling us we’re only going to have £20m to spend.

    The two don’t add up, and Ashley is a smart enough businessman to know this.

    The mail have no real idea what went on at the meeting or how much we have to spend. We’ll only find out after we’ve spent it, or if the manager, owner or Chairman comes out and tells us (which would either be pretty foolish ‘cos we’d be letting everyone see our hand – or a smokescreen so we didn’t).

    Just forget reports in the mail or anywhere for that matter and get on with our lives.


  • lezb

    May 10, 2008 at 2:21 PM

    Comment #30

    I too have yet to have any correspondance published in the mail a subject I critisised them for,no reply to that either.Very selective comments published !!!!!

  • sam

    May 10, 2008 at 3:36 PM

    Comment #31

    great point by ian. obviously the mail have no idea of our funds but they could at least make their guess consistent with their other articles. it’s a waste of time criticizing the mail, anyway. it’s the worst paper ever except maybe the express. it’d be easier to draw up a list of faults for satan.

    also whoever wrote this article hasn’t got a very strong grasp of logic. a) why would we be getting the full 19m from clubs we’re selling to if we’re only giving out a 3rd of fees to clubs we’re buying from? b) if we commit to an eventual spend of 117m (or whatever) over 3 seasons then we’ve literally got nothing to spend next summer or the summer after. why is that a good thing?

  • Chris F

    May 10, 2008 at 4:09 PM

    Comment #32

    Alan, considering the Mail have done nothing but rip the piss out of wise’s appointment, i’d be very amazed if he, or anyone ‘close’ to him had a kind word to say about the bunch of c*nts.

  • christopherbunton

    May 10, 2008 at 4:37 PM

    Comment #33

    Why even bother printing a rumour from the daily mail…’re just giving the fans an exuse to jump on MA. I can’t belive how many people aready against the bloke…I’m sure he’ll spend big.

  • adam

    May 10, 2008 at 5:27 PM

    Comment #34

    the 39m should be spent like this
    vincent Kompany £12m
    rafeal van der Vaart £17m
    shaun Wright Philliphs £10m
    John Arne Riise £4m
    Darren Bent £12m
    plus sell duff £6m
    Emre £6m
    =£51m to spent in total

  • Stephen

    May 10, 2008 at 5:27 PM

    Comment #35

    i don’t believe that the mail knows the amount keegan has to spend. but, this summer i don’t actually mind that keegan spends millions and millions. 20-30 million (unless we have a realistic chance of signing a world class player), plus sales of ameobi, rozenhal and n’zogbia will do. 4-5 players for the first team squad and a few promising younsters with them. then next season, hopefully qualified for europe, we can spend the real big money on the real quality players we can’t attract this summer. basically i have total faith in keegan.

  • gonufc

    May 10, 2008 at 6:20 PM

    Comment #36

    I think this is unbelievable, think about this relatively- fans regularly spend around 500 quid a season for a season ticket which is a huge amount of money for some people, yet because ashley has spent 200 million of his BILLION plus pounds he’s been really committed? What difference to Asley’s life is it gonna make if he has 1 billion or 900 million pounds? I honestly have no idea, i can’t even comprehend that amount of money.

  • daiv

    May 10, 2008 at 6:20 PM

    Comment #37

    Well said Toon 1978. Everybody thinks that MA is a saviour. He bought the club to make a profit. He will sell when he thinks its right. He has not put his hand in his pockets so far and I doubt he will. Owen at 28 will not take a pay cut. KK has said nothing about his meeting with MA which is worrying. Only Mort has said it was “constructive and productive.” What does that mean? It means KK was told to shut up and get on as best he can. But will he? I doubt it. Worrying times again at SJP. If MA will not pay up he should get out. And Ed your sums are bollocks. What happens next year and the year after.

  • Toon1978

    May 10, 2008 at 6:59 PM

    Comment #38

    Seems like Ed is clutching at straws with them sums, as a Premier league club we should not be thinking like that at all. M.Ashley should know by now he has the most loyal and passionate fans at his becon call every home and away game and rakes in the money selling tickets. Champions league contenders ie MANURE,MILAN,REAL MADRID,BARCELONA,CHELSEA,LIVERPOOL,PSV,INTER,ARSENAL,JUVENTUS all spend big bucks to get to the CL they dont muck about with selling players to make funds to bring players in. They keep their best players and pay massive wages to keep these players happy in return challenge for League titles, F.A. cups, CL cups. Until M.Ashley realises this NUFC are going to struggle. Bringing the wage bill down decreases the quality of player you bring in which in return excludes the chance of really winning a trophy yet Ashley wants wages reduced. NOT GOOD AT ALL. Somebody should of told him in this game money is the name of the game and i’m sorry to say if Ashley was at NUFC 3 years ago then we would of had no chance of signing Owen. What chance do we have of signing the likes of VELOSO,ARSHIVAN,RDV, if he wont pay the wages. We have no CL, no europe,no chance of winning the league AND being in the North East which players seem to avoid at all costs AND wages reduced. I think it looks gloomy to me and IF we are lucky we will be a mediocre PL club. FINGERS CROSSED THAT THAT SOUTHERN PAPER IS TALKING RUBBISH because if not then i think in a couple of years time we will be travelling to NOTTS COUNTY, rather then Manchester United.

  • Ed Harrison

    May 10, 2008 at 7:02 PM

    Comment #39

    Toon1978 – you may be close to the truth – but I don’t think it’s just 20M either. We should never really know how much is available – just get 5 good players in during the summer. 😀

  • Toon1978

    May 10, 2008 at 7:16 PM

    Comment #40

    Ed thanks for your reply mate i am not crticising in any way at all i just think that if ASHLEY wants us to finish 5th then huge investment is needed and keeping the likes of OWEN,TAYLOR is a MUST. Must also say i come on this BLOG everyday after work which is normally 7 at night after a 12 hour shift and read through the threads. TOP SITE mate i like the way you done your maths with selling this players and paying so much every season but IMO that is not the way foward. We as toon fans deserve the best players around but we may have to make do with what we have no matter what i will support NUFC to the hilt greedy owner or no greedy owner


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