Wage Cap Is Good For Newcastle

News today that Newcastle United manager Chris Hughton has been told that a wage cap of £30K a week will apply to all new signings.

Chris Hughton – wage cap of £30K/week

The Sunday Mirror is reporting that Mike Ashley has placed a new cap on the players’ wages while the club are in the Championship.

We wonder how many players outside of Newcastle, and currently playing in the Championship, get those type of wages – not many.

I mean how can these players survive, playing the game they love, on only £30K/week?

Sarcasm yes, but it’s about time we had some kind of control on the wages paid out at Newcastle, and hopefully that will also mean, that in special cases, we can break that ceiling for a special player – like another Alan Shearer for example.

But not while we are in the Championship, and are we the only ones who think this wage ceiling is fairly high for the Championship?

At the beginning of the season £750K was said to be the limit Mike Ashley would pay any new signings, and Peter Lovenkrands spent quite a while in negotiations before he accepted a lower than expected wage – which we thought at the time was around £750K/year.

Newcastle have shaved the wage bill quite dramatically from the £74M/year it was last season. Estimates vary, but it’s at least £35M that seems to have been cut from the wage bill.

A Newcastle source told the Sunday Mirror:

“Mike Ashley has had to take drastic measures to get the club back on even keel.”

“But Chris Hughton is well aware that he can’t hand out Premier League wages while the club are still playing in the Championship.”

“He knows what the budget stretches to and he has to work within that.”

If Mike Ashley is still in control of the club next season and we are in the PL, then we would expect the wage cap to be around £60K/week, or a little less – that’s around £3M a year.

As we’ve seen recently with Portsmouth, football clubs must get their financial houses in order, or else they will go to ruin, as Leeds United did a few years back. Byn the way, it’s great to see that famous club clawing it’s way back now – and they were simply magnificent at Old Trafford recently.

Newcastle can still do quite well with a salary cap in place, as long as we continue to bring in good young players to the club, and continue our quite successful youth policy. Investments will be needed to build up our world-wide scouting network.

We’d still like to see a couple of youngsters signed in the January transfer window, as well as a right back, center back and striker for the first team.

We continue to live in hope .

14 comments so far

  • NewcastleMole

    Jan 17, 2010 at 1:24 PM

    Comment #1

    “Peter Lovenkrands spent quite a while in negotiations before he accepted a lower than expected wage – which we thought at the time was around £750K/week.”


  • Ed Harrison

    Jan 17, 2010 at 1:35 PM

    Comment #2

    NewcastleMole – not even Newcastle pay that much – I corrected it – thanks.

  • stevep

    Jan 17, 2010 at 2:15 PM

    Comment #3

    yup – wage cap is a good idea, to be honest I’d not sign players on more regardless of wether we get in prem this year or not. While we’ve cut the wage bill by quite a bit it’s still unsustainable if we stay in championship – we’re by far the biggest payers in this league

  • G

    Jan 17, 2010 at 2:17 PM

    Comment #4

    Lets be honest, all players are on silly money these days. I can remember nearly fainting when I found out we had signed Ginola on 12.5K a week! Once Arsenal broke the wage structure in the country to sing Bergkamp the money in this game started spiraling out of control. To me, even if we do get promoted I would rather watch 11 lads on bobins graft it out for a game than watch 11 prima donas in ferrari’s destroy our game.

  • donjuan

    Jan 17, 2010 at 2:50 PM

    Comment #5

    I see Jermain Beckford has done a Kilgallon and is staying until his contract finishes in June. I’m not that fussed, as we have Ameobi, Lovenkrands, Ranger, Carrol, and Haris Vuckic when he comes back. We do need to tie this Danny Simpson deal up quickly though.

  • Warwick Hunt

    Jan 17, 2010 at 2:57 PM

    Comment #6

    This is long over due. I’ve been saying for years that we should offer players the chance to sign for us on basic salaries but when negotiating contracts we can offer them top Premier league wages based on a bonus system, win, goal, clean sheet, league position and cup run bonuses. We should also have a relegation clause in every contract, so that if ever we get relegated again we won’t be in a financial mess.
    I just can’t see football in this Country continuing on the way it has been in recent history, the bubble will burst at some point. Look at Liverpool at the moment, they aren’t just paying Premier league wages they are paying Champions league wages. They are out of the competition this year and don’t look like qualifying for next seasons CL, but they still have to pay the CL wage bill.
    If players don’t want to sign on for us given these contracts then we don’t need them. I’ve just got a feeling that Beckford, Kilgallon and Simpson didn’t sign on because of the wage structure, but I also feel that they may well lkive to regret the advice they have taken from their agents and lets face it these agents are out to line their own pockets first and foremost and not in the best career interests of their players.

  • kkma

    Jan 17, 2010 at 2:59 PM

    Comment #7

    Ed, thx for bringing us the blog again !

  • Toonmania

    Jan 17, 2010 at 3:15 PM

    Comment #8


    Thank the lord finally never really wanted the guy myself don’t think he could cut it in the prem

  • pearceet

    Jan 17, 2010 at 3:34 PM

    Comment #9

    Beckford has withdrawn his transfer request
    BBC Sport

  • Widowmaker

    Jan 17, 2010 at 5:52 PM

    Comment #10

    Good to see you back blogging, ed.

    Regarding the wage cap thing, I don’t really care how much those players earn, as long as they deliver. Of course, 30K is still a huge amount of money, espercially in the Championship. Lets hope MA is only planning this policy while we remain in this league, or we will never see another Alan Shearer coming home.

    Don’t get me wrong, wage cap can be the best thing since the sliced bread, but we need to be realistic too.

  • chuck

    Jan 17, 2010 at 9:00 PM

    Comment #11

    I dont know exactly how he managed it , but Ashley has the fans on his side , even fans like Ed., who is beginning to sounds like his financial adviser , throwing around figures that may have no relationship with reality.
    Expounding the theory that a wage cap is a good thing.
    Sure it`s a good thing if you can get good players for nowt, FFS we all know that.
    The secret is where do you get these guys for nowt, they all have agents, duh !
    Look you are preaching to the choir when it comes to not overspending, we see the predicaments at Liverpool and Man U.
    But to miss out on players who could help the team, through a parsimonious attitude does not make sense.
    And folks instead of encouraging Ashley to be parsimonious we should be demanding he strengthen the side for the second part of the season and the run to-wards promotion.
    Out with the bean counters and tightwads.

  • Stardust

    Jan 17, 2010 at 9:34 PM

    Comment #12


    “Out with the bean counters and tightwads.” Perhaps you wish to pay for these decisions and consequence?

    If not – please be grateful to those who have financially saved the club.

  • chuck

    Jan 17, 2010 at 9:57 PM

    Comment #13

    I am well aware of the fact through his own stupidity, lack of understanding, poor choices of those hired to run the club, Mike Ashsley has lost a lot of money.
    Money that had to be put into the club at the time and yes I am aware of the fact the present recession has also had it`s effect.
    But in the reality of the situation, where there are standard amounts, demanded by agents for players and who are aware of what clubs are presently paying and what they can afford.
    Does Ashley think he can change common practice by refusing to pay above a fixed wage cap.
    Pay a mediocre amount, you end up with a mediocre player ergo a mediocre team.
    The rewards of playing in the PL plus having a filled stadium, ought to be a moneymaking business if operated properly.
    To survive in that environment requires a certain amount be spent on players, parsimony is I`m afraid a formula for demotion.

  • newcastle29

    Jan 18, 2010 at 10:49 AM

    Comment #14

    i see nobby solano has been spotted at the training ground, is this what the wage cap will reduce us to? i hope he’s just training with us!


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