Poor Management Bankrupting Clubs – Not The Economy

With Portsmouthth entering administration today, Newcastle manager Chris Hughton has come out and said he knows about the financial situation at Newcastle.

Mike Ashley with Chris Hughton

But let’s not blame the financial problems of Portsmouth, Cardiff City, Crystal Palace and other clubs, wholly on the global economic conditions.

That’s being too polite to the financial managers of these clubs, because they have gone down because of poor and even reckless financial management – and let’s not forget that.

The poor economic conditions have certainly not helped, but they are by no means the major culprit in all of this.

It looks like Chris has been somewhat kept in the picture at Newcastle regarding the financial situation, and he has to realize if the club don’t get promotion this season, things will need to change big time at Newcastle, and not for the better.

Chris talked about the financial problems hitting some clubs:

“We all have to be wary because there are more and more clubs being mentioned as each week goes past,”

“It is a real sad, grave day when a club goes out of business. Whether that will be what it takes for everyone to take stock I don’t know but it’s troubled times with clubs in financial difficulties.”

“There will be four or five big clubs who’ll be able to bring in the big players with financial clout but outside that everyone will have to live within their means.”

There’s no doubt that Newcastle still have far too large a wage bill at around £40M a year for a second tier club.

And the fact that Mike Ashley is loaning the club big sums of money at zero interest rates to keep the club afloat, seems to have gone over well with the Geordie fans.

But Mike still has an awful lot to do for the Newcastle club to just make up for his major mistakes in the past.

But credit where credit is due, and it seems since Mike took the club off the market late last year, he’s done most things right.

There is the renaming of  St. James’ Park that comes to mind that was not a good thing to say or do.

Nut to his credit he supported the manager with real money last month, and has wisely kept in the background, and heard the songs sang against him at every home game.

Chris continued:

“I’m aware of some of the financial situations we have here, I know we have an incredibly large wage bill,”

“What I did ask for in the window was support from upstairs and I was able to get that. They’ve been very good on that.”

“Some clubs will find it difficult to get out of the situation they find themselves in,”

Even through Newcastle are in the second tier this year the home gates, at just less than 43,000 average, are still the 5th best in England.

That says something about the Newcastle club, and even more about the Newcastle fans, who are not only the best in England, but the very best in Europe too.

They are Newcastle United.

Howay The Lads!!

4 comments so far

  • Purely Belter

    Feb 27, 2010 at 10:53 AM

    Comment #1

    I wish it wouldve been tottenham instead of pompey in the terrible financial situation that they find themselves in!

    im sure mike ashley has bought along a lot of sense in regards to the financial aspect of newcastle united, but his footballing decisions have been his downfall.
    i think chris mort had some idea of what to do but sadly his departure started the sad decline of what happened last season

  • Girth

    Feb 27, 2010 at 11:42 AM

    Comment #2

    “Poor Management Bankrupting Clubs – Not The Economy”
    The exact reason why we have to say ‘yes’ to your poll Ed on do we think Ashley is NOW RUNNING the club in a good way.
    The man stays out the lime light, pumps millions of his own money into the club and is still hated, im am adamant that because of the nature of the recession, added to the way the club was financed, we would be staring at a similar situation to Portsmouth.
    Bit of objectivity from the fans once in a while wouldn’t go amiss perhaps…

  • bill

    Feb 27, 2010 at 11:48 AM

    Comment #3

    Don’t wind me up about Mike Ashley – if I see another positive article about this clown I’ll blow my top.

  • cupiddstunt

    Feb 27, 2010 at 7:02 PM

    Comment #4

    Start blowing then ya mug.

    Granted he made some mistakes in the beginning, we all make mistakes at one time or another or are you one of these folks that have never made a mistake in your life?

    The guy appears to be thinking before acting nowadays and looks like he has finally got the message, we look like we are getting onto a sound financial footing and that is not a bad thing, so good on him.


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