Huge Financial Crisis Looming At Newcastle


 We’ve been wondering just what Mike Ashley will do if Newcastle get relegated, and it seems what will happen is as bad as we had thought, and maybe even worse.

SOCCER Man City 4

 Derek Llambias and Mike Ashley – disaster if Newcastle go down 
 Newcastle owner Mike Ashley has every right to be very very nervous right now, and not just because he will lose at least £100M if the Magpies go down. That may turn out be the least of his troubles.

The real problem is how the club will adjust to their greatly reduced revenues. They will need to unload a lot of highly paid players and bring in others, maybe not as good, who will have to be on much lower wages, but a business plan will need to be put in place to run at less than half the revenues the club is used to – that’s a huge challenge, to say the very least.

And with this in mind, the Sunday Sun is reporting today that Mike Ashley talked of the devastating potential of relegation to club employees, after Monday night’s 0-0 draw with Portsmouth. That meeting would hardly have happened if we had won that game.

Ashley reacted to Newcastle’s 0-0 draw against Portsmouth on Monday night by holding unplanned talks with senior staff at St James’s Park until well into the early hours of Tuesday morning.  According to the Sunday Sun Ashley is said to have delivered a brutal reality check for Newcastle insiders on the likely consequences of being relegated to the Championship.

Mike told his select but grim-faced audience of the likelihood of widespread redundancies at the club, to greatly cut costs, in the event of relegation.

That proverbial inside source at St James’ Park has apparently told the Sunday Sun:

“Ashley was pulling no punches,”   “The meeting went long into the early hours of Tuesday, and as decidedly gloomy.”

“He laid it on the line that there would be huge cuts in the event of relegation and that jobs would have to go.”

It will be a monumental blow to Newcastle, and relegation has decimated other clubs with high hopes, like Leeds United as just one example.  And we’ve never been sure that most fans fully understand the full ramifications of relegation, where money in football is now so important, whether you like it or not.

If we go down things will be in crisis at the club for a little while, but the the powers that be will need to come up with a solid business plan, both for survival and to put together a squad worthy of coming straight back up.  

They may need a week or two to recover first from the complete shock to the system of relegation, if that does happen.

Things will be both bad and sad – make no mistake about that – which is why these games are so important to the future of our club.


27 comments so far

  • Turkish Magpie

    May 3, 2009 at 12:08 PM

    Comment #1
  • knottsy82

    May 3, 2009 at 12:22 PM

    Comment #2

    YES AND INSTEAD OF SELLING THE CLUB TO SOMEBODY WHO KNOWS HOW TO RUN IT HE’LL START SELLING EVERYTHING AND EVERYONE HE CAN AND TURN US INTO LEEDS UNITED, GIVE HIM LOADS OF CREDIT FOR TRYING BUT IT HAS’NT WORKED MIKE PLEASE SELL THE CLUB AND MOVE ON.

    0
  • marshy

    May 3, 2009 at 12:22 PM

    Comment #3

    why all the other people at this meeting,only he,llambias and wise should have been there as they are the idiots who got us in this situation.

    0
  • Stuart79

    May 3, 2009 at 12:26 PM

    Comment #4

    Ed

    Did you really just say that the powers that be will come up with a good business plan?

    I really hope it’s better than the five year plan were into at the mnute.

    If we go down I really believe that we will be in a struggle to stay in the Championship!

    Most of the players will leave and there will be absolutely no money to spend to replace them.

    Were really going to be up sh1t creek!

    0
  • Geordie-Gerrard7

    May 3, 2009 at 12:31 PM

    Comment #5

    ed why post so much negativity ahead of a game? have u never heard of a shit sandwich???

    wait for us to get a result toaday, wich we will, post how brave the lads were. followed by the shit stuff, then end on a positive.

    at the mo its just all negativity, 1-1 draw today id be delighted

    0
  • Ewan Kerr

    May 3, 2009 at 12:38 PM

    Comment #6

    Apart from underachieving players, it’s Kinnear, Ashley and Llambias who are the only ones left at the club who got us into this mess,and itwas mess before Kinnear joined. The rot started whenMilmer left, not because he was a great player but because of the way transfers were beinghandled. Not listening to how Keegan wanted to build a team, not buying a left back, buying inept and injured players, the list could go on, but I’m p155ed off with the whole thing. A win against Liverpool will make us all feel better but it wont solve the problem.

    0
  • NotAGhostToon

    May 3, 2009 at 12:41 PM

    Comment #7

    4-3-3 according to the bbc!

    0
  • geist

    May 3, 2009 at 12:41 PM

    Comment #8

    martins, viduka, lovenkrands and barton all start.

    0
  • geist

    May 3, 2009 at 12:42 PM

    Comment #9

    owen has been dropped

    0
  • Ashley Hole

    May 3, 2009 at 12:43 PM

    Comment #10

    Harper

    Beye S Taylor Bassong Duff

    Lovenkr Colo Butt Barton Jonas

    Viduka

    0
  • Toon_Factor

    May 3, 2009 at 12:44 PM

    Comment #11

    ______________Harper______________

    Beye_____Bassong_____Coloccini____Duff

    Loven___Butt____Barton__Smith__Martins

    _______________Viduka_____________

    Think its lined up like that, no jonas wtf

    0
  • Stuart79

    May 3, 2009 at 12:44 PM

    Comment #12

    These knobs on Setanta talk sh1t!

    Why is dropping Owen a fckin risk?!

    He would be a complete liability in this game!

    0
  • Geordie-Gerrard7

    May 3, 2009 at 12:53 PM

    Comment #13

    happy joey and loven start. id play oba and lovens on the whe wing, viduka up top on his todd.

    im happ with the team, dropping owen is the best news iv heard for ages, maybe he will buck his ideas up the little fcecker. i like mo, but only when he scores

    0
  • Toon_Factor

    May 3, 2009 at 12:55 PM

    Comment #14

    Any money Gerrard scores at least 2 goals, like Rooney/Scholes etc hes the type of players that always scores against ys.

    0
  • BT9MAG

    May 3, 2009 at 12:56 PM

    Comment #15

    geordie gerrard – why visit the site if you don’t like it – doubt we’ll get a result, but a decent performance will please me!

    0
  • Stuart79

    May 3, 2009 at 1:02 PM

    Comment #16

    I am sh1tting bricks!

    I just hope we don’t get a gubbing!

    0
  • Rodzilla

    May 3, 2009 at 1:05 PM

    Comment #17

    …I’ve just made a ‘mud’ hut in the back yard Stuart.

    Glad to see Barton back, and no Torres! We could nick something here, that’s not a bad side. I may be delusional though.

    0
  • Big Dave

    May 3, 2009 at 1:08 PM

    Comment #18

    well lads not long now i just hope we can be proud of the performance today, I am really surprised if Mo is on the bench as i thought Al would have stuck with him but on the bright side if he does drop Mo then I would respect him so much more as it means that even friendship is not as important as to Al as the Toon

    0
  • Big Dave

    May 3, 2009 at 1:09 PM

    Comment #19

    Stuart79 same here mate my stomach is doing cartwheels

    0
  • Big Dave

    May 3, 2009 at 1:13 PM

    Comment #20

    lads i just heard gerrard just pulled out in warmup ?

    0
  • Rodzilla

    May 3, 2009 at 1:15 PM

    Comment #21

    I can see him on TV Big Dave – looks fine to me, unfortunately

    0
  • geordie deb

    May 3, 2009 at 1:27 PM

    Comment #22

    Feels like before a visit to the dentist – you know it’s likely to be painful but you hope and pray it won’t be.
    Howay the lads

    0
  • Geordiedoonsooth

    May 4, 2009 at 8:48 AM

    Comment #23

    So what if we go down we’ve been there before. Look at Birmingham & Reading & WBA the season before we can come straight back up if Shearer stays & Ashley gives him money to buy decent players that want to play. We should keep the following players as a base & add some of the kids like Ranger etc & some decent players & we could come back up as champions.

    GKs: Harper, Krul, Foster

    Defence: Bassong, S. Taylor, Edgar, Enrique, Beye

    Midfld: Butt, Jonas, Duff, Guthrie, LuaLua

    Fwrds: Carroll, Viduka, Owen

    Sell the rest to rais e some transfer money

    0
  • marshy

    May 4, 2009 at 12:23 PM

    Comment #24

    we got stuffed but the score could have been worse.as usual our marking was crap and as usual barton got sent off,though it didn’ make much difference.

    0
  • Tom_Toon

    May 4, 2009 at 2:25 PM

    Comment #25

    #

    0
  • chuck

    May 4, 2009 at 5:05 PM

    Comment #26

    Sir Bobby attempts to let Ashley off the hook.
    Dont agree, Yes! he picked the wrong people, thats a given.
    However to pick someone from a casino you happened to meet is terrible judgement and so was Wise, have no idea about Jimenez or the geezer before Llambias who was smart enough to jump ship before the s**t hit the fan.
    I dont get it, someone who runs a multi million pound operation and picks jerks to run it, then compounds it by hiring more jerks, it beggars belief.
    Reading the riot act after the fact is another example of looking for someone to blame instead of looking in the mirror.
    You took a bad gamble and it turned brown , live with it it`s mostly your own fault.

    0
  • Tom_Toon

    May 4, 2009 at 10:25 PM

    Comment #27

    //

    0

You must log in to post a comment.