Newcastle To Pay Out Around £10M For Gutierrez And Keegan


Managing Director Llambias spoke to Newcastle fans’ groups on Tuesday night, and the purpose of this meeting was to address various concerns with the direction the Ashley regime is taking the club.

mike-ashley-with-llambias1

Llambias with Ashley – we just scored

And there are more quotes trickling out today on some of the things Derek Llambias said.

In the next 7 days Newcastle will need to pay out some substantial payments to Real Mallorca for Jonas Gutierrez, but why that is the case the club should explain, since we initially were said to do things completely legally.

The second payment is to former manager Kevin Keegan for breach of contract, and it looks like the club wants to settle this out of court, which seems the best thing, given the circus there would be once the tribunal started. We have had enough of those for one season, thank you very much.

Llambias said:

“We are hoping to reach two important settlements in the next week or so which potentially could cost the club a lot of money,”

“One of those is the settlement with Kevin Keegan and the other is the fee for Jonas Gutiérrez. We are talking about millions of pounds here and, if we have to pay out a vast sum of money, that will hit our revenue elsewhere.”

“Mike has had to put £10M of his own money into the club this week to facilitate the running of the club – that includes £4.5M for Kevin Nolan as fees for Shay Given and Charles N’Zogbia will not be received until the summer. And he will continue to put his own money in.”

“He is willing to put £10-15M of his own money in every year, but the rest of the money, for transfers and so on, has to be generated by the club’s own business activity.”

“We don’t have any commercial income at the moment because that was spent to pay for Michael Owen. It was all spent in advance, that’s the money from Northern Rock and Adidas.”

“That is crazy for any football club because we need that income.”

It seems we will be shelling our around £4M for Jonas, and maybe another £6M for Keegan, so that’s a cool £10M in the next week – that’s about 4 players right there, with the deals we’ve recently been doing – ouch!

And Derek’s statement has clarified things a little, because when Mike says he is willing to put around £10M per season into the club (it used to be £20M), that is in addition from what the club can generate for itself in profits.

But the loop-hole in all of this right now is Shepherd spent all the annual payments from the sponsorship deals up front, in advance, so until those contracts become open again, there’s no money from those sources – Northern Rock and Adidas. We also expect there to be new shirt sponsors once the Northern Rock deals runs out.

Also the £10M we have stated – Kevin is asking for £8M in compensation, so let’s say they settle at £6M, and last week Kevin Llambias had said the club would pay out £4M for Jonas – so £10M seems a reasonable estimate.

Expect Shepherd to come out again and defend himself on how he ran the club financially, but from what we can see, it seems to have been suicidal.

To be fair to Freddy though, when you have a fan, born and bred in Byker, as Newcastle Chairman, the tendency is to do his utmost to being success to the club, and it seems that meant Freddy spending lots of money on players and wages, the club just didn’t have.

Comments welcome.



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88 comments so far

  • cicero

    Feb 26, 2009 at 10:28 AM

    Comment #1

    News yesterday that Darlington have gone in to receivership and been deducted 10 points. How easily could that have been us if MA hadn’t bought the club. For all the trouble that has been caused this season it’s hard to forget the boards miss management of the situation, but it’s been more bad communication than poor business practice.

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  • THE MAGPIE

    Feb 26, 2009 at 10:31 AM

    Comment #2

    If Keegan resigned and wasnt sacked then there would be no compensation due. If it went to the Tribunal the truth would come out.
    Why did Jiminez leave-perhaps the deal he did for Guti wasnt so great after all.
    Amount paid out getting rid of Managers before KK was 11.9m+KK 15.9m-a criminal waste of money.

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  • Ever seen a mackem in Milan?

    Feb 26, 2009 at 10:41 AM

    Comment #3

    @ THE MAGPIE

    Maybe they dont want it to to a tribunal because if they did sack Keegan it could all be dragged up again.

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  • Stardust

    Feb 26, 2009 at 10:49 AM

    Comment #4

    Ed Dispicible!

    Newcastle To Pay Out Around £10M For Gutierrez And Keegan” the biggest pile of rubbish youve ever written – But it gets people clicking doesnt it.

    When you put self interest and blog clicks and popularity before the club you really have lost your way.

    You will get your clicks and visitors rushing in from News Now, the great debate will start again – who’s to blame, who is not, and people will be buzzing round the site wondering what do you know that noone else does – I can tell them – NOTHING!

    You choose to prostitute the clubs reputation with sensationalist made up “EDLINES” SHAME ON YOU

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  • hitman

    Feb 26, 2009 at 10:51 AM

    Comment #5

    one thing this out of court settlement proves is there guilt,because if i knew id did nowt wrong id fight it all the way like.

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  • sirjasontoon

    Feb 26, 2009 at 10:51 AM

    Comment #6

    Shut up Stardust..start your own Blog if you don’t like it.

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  • cicero

    Feb 26, 2009 at 10:56 AM

    Comment #7

    Have we done so bad in the last 2 windows on limited funds? 5 good/average premiership players in, Guthrie, Coloccini, Gutierrez, Nolan, Ryan Taylor and Lovenkrands, plus one real gem Bassong – 2 good/average premiership players out Given and Milner and one disruptive one Charles N’Complainer. Stronger squad than last summer.

    Next summer on my “grid” would be:

    Out:

    Cacapa
    Viduka
    Gerermi
    Amiobi

    In:

    Top class defensive midfielder
    Top class creative midfielder
    Top class striker

    Step up:

    Lau Lua
    Ranger
    Kadar
    Tozer
    Xisco

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  • hitman

    Feb 26, 2009 at 10:59 AM

    Comment #8

    if ashley has to pay out 10 mill in compen,then we can kiss goodbye any transfer money in the summer..

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  • hitman

    Feb 26, 2009 at 11:00 AM

    Comment #9

    stardust read the article before posting not just the headline

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  • Stuart79

    Feb 26, 2009 at 11:05 AM

    Comment #10

    Stardust

    Go and join NUSC and leave this blog.

    All you do is spout sh1te!

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  • hitman

    Feb 26, 2009 at 11:10 AM

    Comment #11

    stardust you have been banging on about people making KNEEJERKS,what have you just done.

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  • Toon Graeme

    Feb 26, 2009 at 11:11 AM

    Comment #12

    Morning lads.

    Stardust – I think you go off on one fella. I bet you havent gone onto the journal and got at them for the article.

    Ed is doing as he always does – updating the blog with info about the toon, be it from NUFC website, local rags, tv etc.

    Typed some balls there matey and you usually come up with balanced posts – but you seem quite anti ed at the mo.

    I would like to know what happened and it looks as though NUFC want to pay hush money and probably chuck a gagging order in there too.

    You got to laugh really. Anyone going to the Manure match? Im looking forward to a good singalong – dont expect a win like but hope the craic is good!

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  • ginkoh

    Feb 26, 2009 at 11:15 AM

    Comment #13

    Waste money for nothing again if true.

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  • stevep

    Feb 26, 2009 at 11:20 AM

    Comment #14

    we also need to pay Bolton 4 million for Nolan so not sure how much we’re gonna give KK or pay for Spidey.
    Man City, Wigan won’t pay us for Given / Zogs until the summer, hence ashley paying for Nolan, KK and Spidey

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  • batty

    Feb 26, 2009 at 11:24 AM

    Comment #15

    STARDUST and his MOB dont like to be proven wrong and if fat ash has got to pay keegan that proves that the fat man and co have been lyeing all a long

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  • Stuart79

    Feb 26, 2009 at 11:25 AM

    Comment #16

    Ashley hasn’t paid for Nolan!

    He’s lent the club the money. He will get that back in the summer

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  • Pons Aelius

    Feb 26, 2009 at 11:25 AM

    Comment #17

    I’ve been thinking about this for a while. The whole thing about the ‘webster rule’ and article 17 that allowed us to get Jonas on the cheap seemed really legitimate. The rule was something like any player over the age of 25, who has played at his club for 3 years or more can move on if he is capable of paying out the remainder of his contract. So obviously Jonas did this. Or did he?

    I think Toon Graeme is right. I think Newcastle are putting a gagging order on Mallorca. There are plenty of rules that conflict with Article 17 – the whole ‘tapping up’ debate.

    All I can assume is that Newcastle ‘tapped up’ Jonas without Mallorca’s permission, advising him we would pay him a signing on fee that covered the cost of buying out his contract, which allowed him to move under article 17. I reckon Mallorca threatened to take us to tribunal, and with FIFA cracking down on tapping up, Llambias has agreed (like with KK) to settle out of court.

    Just a thought.

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  • batty

    Feb 26, 2009 at 11:28 AM

    Comment #18

    yes fat ashes dodgey dealings

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  • Stardust

    Feb 26, 2009 at 11:33 AM

    Comment #19

    Where in the Journal did it say 10MILLION? I read it didnt see it anywhere.

    http://www.journallive.co.uk/nufc/newcastle-united-news/2009/02/26/magpies-ready-to-pay-out-millions-61634-23014033/

    TOTAL SUPPOSITION MADE UP FROM NOTHING.

    And Keegans “Settlement” could go either way – I dont expect a club defeat. For may reasons I cant be bothered to re-itterate again.

    Any reds under the beds fellas – you always seem to be hunting them? Cowards.

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  • Stardust

    Feb 26, 2009 at 11:35 AM

    Comment #20

    Toon Graeme 0 Id read the Journal this morning – Newcastle pay out around 10MILLION is a fabrication.

    I have stated on countless occassions EDs “EDLINES” are made to get clicks on the blog – but it causes instability, but he gets his clicks, his banners displayed and more money per click – its either that or an ego inflation whatever his rationale.

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  • club insider

    Feb 26, 2009 at 11:41 AM

    Comment #21

    stardust,

    you are a tugger if you don’t like it on here shag off somewhere else ! Tool !

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  • hitman

    Feb 26, 2009 at 11:41 AM

    Comment #22

    Llambias said:

    “We are hoping to reach two important settlements in the next week or so which potentially could cost the club a lot of money,”

    “One of those is the settlement with Kevin Keegan and the other is the fee for Jonas Gutiérrez. We are talking about millions of pounds here and, if we have to pay out a vast sum of money, that will hit our revenue elsewhere.”
    so ED has made it up

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  • Stardust

    Feb 26, 2009 at 11:42 AM

    Comment #23

    Hitman – on the contrary – again I await real facts before commneting.

    Youve justdone it again – you believed EDs EDLINE and threw it at me – read the Journal and wince.

    Though the Mob would love me to revert to their thought processes, it must frustrate you I am utterly consistent.

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  • THE MAGPIE

    Feb 26, 2009 at 11:43 AM

    Comment #24

    Its millions-lets call it 8 then but the question remains why is the club backing down on these 2 issues. I thought we had acted correctly over Guti.

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  • Stuart79

    Feb 26, 2009 at 11:46 AM

    Comment #26

    Stardust

    Idiot!

    Llambias has said that both the Keegan case and Gutierez case will cost the club a lot of money, millions in fact.

    Now I’m no tribunal expert but why would the club pay Keegan ANYTHNG at all if they were truly in the right in every way in the whole debacle? They wouldn’t!

    They will spout the old “the payment doesn’t reflect the clubs wrong doing or breach of contract” It’s all bullsh1te whichever way you look at it.

    Paying Keegan is an admission of guilt and they know a court would award Keegan more!

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  • Stardust

    Feb 26, 2009 at 11:58 AM

    Comment #28

    Hitman – WHERE OH WHERE DOES IT SAY 10 MILLION PAY OUT FOR THE SETTLEMENTS!

    IT DOESNT!

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  • hitman

    Feb 26, 2009 at 12:01 PM

    Comment #29

    stop splitting hairs stardust,its not as if its going to be pennys is it..lambias has says its going to be millions.FFS

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  • Stardust

    Feb 26, 2009 at 12:06 PM

    Comment #30

    My Point was about splitting hairs, Eds EDLINES are destructive – he prostitutes the name of NUFC to get hits on the Blog – what dont you understand about my point?

    The more hit and clicks he gets – he either gains notoriety or money from banner ads! Eds rationale is for him to explain why he creates these destructive EDLINES to get viewers.

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  • Girth

    Feb 26, 2009 at 12:08 PM

    Comment #31

    im with Stardust, where does it say how much we will be paying out? it doesnt! fact!
    Just wait and see eh and stop all getting your little nipples hard over nowt!
    ohh and paying someone off is not an admission of guilt!

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  • Tony

    Feb 26, 2009 at 12:11 PM

    Comment #32

    cant understand having to pay any money for jonas eufa looked into it back in august thats why we got his registration

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  • Stuart79

    Feb 26, 2009 at 12:11 PM

    Comment #33

    girth

    what is it an admission of then?

    it is a total waste of money if you ask me.

    we are strapped for cash so why would we pay kk if we didn’t need to ie winning a court case

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  • Girth

    Feb 26, 2009 at 12:16 PM

    Comment #34

    there are many obvious reasons why someone would pay out of court, but to be honest, i cant be arsed to list them all, been working nights so off for a kip, google it or something!

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  • bowburnmag

    Feb 26, 2009 at 12:16 PM

    Comment #35

    I say let it unfold. Cheers me right up when everyone gets their Diana Vickers in a twist.

    Keegan was right and the board was wrong, for what it’s worth!

    I also agree it must be a significant enough amount to bother mentioning?? £10m is a nice round number like but would it make any difference if he directly quoted him with the more generic headline of “NUFC to reach two important setttlements this week” and the sub-headline “we’re talking millions of pounds here”?

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  • hitman

    Feb 26, 2009 at 12:21 PM

    Comment #36

    girth,kk was after 8-9 mill compen,do you think he will take less like,coz its not going to court i think not.plus theres compen for jonas which totaly baffles me why we have to pay compen like.so maybe 10 mill is being generous on EDS part.

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  • rooks

    Feb 26, 2009 at 12:21 PM

    Comment #37

    yep looks like Ed has got it wrong – the £10m is for Jonas, Keegan AND Nolan. Naughty Ed !

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  • hitman

    Feb 26, 2009 at 12:29 PM

    Comment #38

    rooks,where you gettin that part from(nolan)

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  • Stardust

    Feb 26, 2009 at 12:30 PM

    Comment #39

    Yep – the club haters love these EDLINES – the real supporters see through them

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  • rooks

    Feb 26, 2009 at 12:32 PM

    Comment #40

    from that Kevin Llambias bloke at the top of ther page –

    “Mike has had to put £10M of his own money into the club this week to facilitate the running of the club – that includes £4.5M for Kevin Nolan”

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