The big news today is the Newcastle Journal is reporting that the Newcastle club are losing £500K a week in the Championship.
Mike Ashley – keeping Newcastle afloat
Mike Ashley cut back drastically once the club was relegated and cut the staff at the club, and in the process sold several players to cut the wage bill last summer.
The wage bill was £74M per year and according to reports it has been reduced to around £40M, but since the revenues in the Championship are only around £50M – about half of what they are in the Premier League, it’s hardly surprising Newcastle are losing money.
Of course this cannot continue long term, which is why it’s imperative that Newcastle clinch promotion this year, otherwise we’ll have to sell some of our big wage players – and there will go one of the advantages we have this season.
There were reports last weekend that Ashley had already put £25M into the club and he may have to dig deeper before the end of the season, although Newcastle’s fantastic home corwds will be helping a little.
A senior Newcastle United source said:
“Newcastle United couldn’t survive at the moment without Mike’s money, it’s as simple as that.”
“If Mike and the banks weren’t willing to cover the cost of relegation Newcastle may well be in a Portsmouth situation.”
“It is costing Mike £500K a week this season to keep Newcastle running without making further cutbacks, yet some people are saying the club should be able to wipe its own mouth, that it should be able to run by itself with the income coming in.”
“You can not lose £50m in revenue and expect not to have to take a hit, particularly when you have the overheads Newcastle have.” “The wage bill was reduced, but it’s still way too big for the Championship.”
It’s unclear whether the money Ashley has loaned to Newcastle will need to be paid off – but we think it will, because our understanding is that Mike has given the club a loan and didn’t want any interest on that loan.
This news should be embarrassing to the NUST, because one of their members had said that Ashley was culling £7M a month from Newcastle, and he told others to do the maths.
Well we suppose he wasn’t concentrating during his maths classes, because how Mike can make £84M a year when the revenue at the club is just £50M is beyond us.
It was an embarrassing gaff by one of the NUST members.
It’s as embarrassing as their poll, in which they say 96% opposed Ashley, and we just never believed those figures..
We are not Mike Ashley fans in any way, and we are willing to support the NUST, but in our own poll – which is still open – it’s 47% for and 47% against Ashley right now.
We well understand lots and lots of Newcastle fans hate Ashley for the multiple gaffs he’s made at the club, but this stuff doesn’t help anybody.
The main thing now is for Newcastle to get promoted, because if we don’t, our squad will need to be cut in the summer, and it’s the big wage earners who will need to leave – like Coloccini, Smith, Nolan, Barton, Gutierrez, Enrique and others.
You see what we mean.