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.
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.
“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.