One thing that has been well publicized about Newcastle this summer, is that their wage bill is just too high.
Damien Duff – high wage earner at the club
For the season 2006-2007 Deloitee & Touche reports we had the 5th highest wage bill, only behind the top 4 clubs, Chelsea, Man United, Liverpool and Arsenal , but yet we finished in a miserable 13th position with our worst ever 43 points.
Last season we were said to have increased the wage bill by Â£10M, so we think last season the total wage will was around Â£72.5M, and we finished 12th with 43 points.
One thing we are doing to correct this is to move out some of our under-performing players on high wages.
We expect these players with their estimated weekly and yearly salaries top be moved out this summer. Some have already gone and these are merely estimates – some will be too big and some too low and some we will not even estimate just to get a ball-park figure.
Player Weekly Yearly Yearly Â£K Â£M Savings Â£M Emre 55 2.86 2.86 Carr 40 2.08 2.08 Ramage 10 0.5 0.5 Duff 55 2.86 2.86 Smith 55 2.86 2.86 Rozehnal 40 2.08 2.08 Ameobi 30 1.56 1.56 Diatta Troisi 285 12.72 12.72
What does this mean?
By moving these players out we’ll save over a quarter of a million pounds a week, and around Â£12.72M annually on the wage bill.
But then of course we will need to pay the incoming players decent wages, but presumably less than what Emre, Smith, Carr and Duff were getting.
We suppose the club is also trying to reduce Michael Owen’s wages by Â£2M/year from Â£6M to Â£4M, and of course Steven Taylor will be getting some kind of increase in his compensation.
But when you look at the figures it seems to us it would be very difficult to reduce the wage bill by more than say Â£5M/year, at least in one summer.
Remember also, that we are aiming for 5th place next year – so Kevin needs more talent at the club – and yes, you’re right – that costs money.