There is a report in The People today from Alan Oliver, the former Evening Chronicle journalist, that Alan Shearer will seek some assurances from Newcastle United owner Mike Ashley, that there will be no cost cutting at the club.
Alan Shearer – needs to sit down with Ashley in the summer
You wonder whether this is true, because in the event of Newcastle being relegated there has to be cost cutting, because the revenues will be less than half of what they were in the Premier League. Unless Mike Ashley will put another £50M into the club next season, to make up for the loss of Premier League TV revenues, there has to be cost cutting.
That’s not even mentioning the loss of revenues at the gate, so what this story means is hard to tell, other than it’s Sunday again.
The news is that Mike Ashley will offer Alan a £4M/year deal over 4 years, but that was probably predicated on Newcastle staying in the Premier League, and as we’ve said before, what exactly happens if we get relegated is an unknown right now.
But if we do go down there’s no way we will be able to keep Michael Owen, Oba Martins and the other high wage earners at the club, because we just cannot afford them.
The People is reporting that the company that installs installs mini- TVs in the press box at every home game have been told their services will not be needed if Newcastle are relegated, so it seems some decisions on where to cut costs have already been taken.
What really needs to happen is that Mike, Alan and Derek Llambias will have to sit down and discuss the business plan at the end of May, whichever league we are in. If Alan doesn’t like the plan, and/or cannot get Mike to change it to his liking, he will probably not stay.
But that would be another huge error by Mike Ashley, and he’s simply not that stupid to allow that to happen. We’re sure Mike is impressed with the professional way Alan is going about the job, if not the results we have had so far, and will be anxious to keep Alan long term at the club. It’s in his own interests as well as the Newcastle United club to keep Alan at the helm.
Newcastle had to pay £5.2M to Real Mallorca for Jonas Gutierrez just last month, and are being sued for £8M compensation from former manager Kevin Keegan.
The Jonas fee supposedly had to be paid, but we hardly think Keegan has a good case for £8M, since the Board made it clear they had never sacked him, before Kevin finally walked, for the second time from Newcastle.
His history of walking out at clubs (and England) would hardly be helpful to him in any compensation hearing.
If we stay up, there should be no problem, and it’s only if we go down that Newcastle will have to find some way of reducing costs, unless we want to go into bankruptcy. It’s simply business 101, but we’ve noticed some football correspondents have no idea of how real-world businesses are actually run.
If we can beat Middlesbrough tomorrow night, a lot of this may become a technicality.