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News and Commentary On Newcastle United Football Club By Ed Harrison, A Proud Exiled Geordie And Lifelong Fan

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Newcastle Need Another £10M Cash Infusion

10:27 am, Sunday, March 7th, 2010 by Dr. Ed Harrison · 10 Comments

There is another article in the News Of The World today which basically states that Newcastle are still spending a lot more money than they are bringing in while they are still in the Championship.

Mike Ashley - will lend another £10M to keep club afloat

And it is expected that Mike Ashley will need to loan the club another £10M before the summer to keep the club afloat.

However, if Newcastle are promoted in early May, they will receive a cash infusion of £35M, and of course we would expect the season ticket sales to be fast and furious because the team is performing so well on the field right now.

Newcastle have held season ticket prices steady at this season’s rate for any fan who wants to buy their season ticket for next season, before March 31st, and we would expect the sales to be brisk.

Ashley loaned the club £25M in December interest free, and then in January the club brought in four players for around £5.5M in total, and most of them look great buys.

And apparently Newcastle will get a second relegation parachute payment, due in August, and as we reported last week, there are payments due this summer from the sale of some of the players we unloaded last summer.

If Newcastle do get promoted, things will look quite bright.

And the Newcastle club will finally start seeing some money from the sponsorships of Northern Rock and Puma.

No money has come in since Ashley took over in June, 2007 from those sources, because all the money from the last deal was spent to bring in Michael Owen.

The wage bill now is probably around £40M, and even if the club gets promoted, which now seems likely (dare we say that yet?), the wages will be kept to £50M at most.

The club has a new limit on wages, with no player arriving in January picking up more than £10K a week – how can they live on only that? :D

But the main news is that around £10M will still be needed to cover the running costs of the club before the season is out.

But Newcastle are doing the right thing in getting their financial house in order, and the Tyneside club should be able to get big money in during the summer if we are indeed promoted.

Things will start to look a lot brighter on Tyneside, and things even now are starting to look up.

And the famous Newcastle fans seem to be understanding better the financial limits on football, with so many clubs getting themselves into financial difficulties and paying a heavy price.

It’s looking like Newcastle United will never be one of those clubs in the future.

Comments welcome.



Tags: Newcastle News



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10 responses so far ↓

  • 1 Captain Beefheart // Mar 7, 2010 at 10:44 AM

    Take the ‘if’ out of promotion with….

    BEEFY’S (c) PROM-o-METER deluxe

    Extrapolated Final CC Championship Top 10

    DATE: 06/03/10

    POS-TEAM-PL-Pt(M)[(C)]-TR

    1] NUFC -34 – 92 [96] (+)
    2] WBA -34 – 87 [87] (-)

    3] FOR – 35 – 84 [80] (+)
    4] SWAN -34 – 80 [78] ( – )
    5] LEIC – 35 – 73 [75] (…)
    6] CRDF – 33 – 71 [73] (…)

    7] COV – 35 – 68 [72] (+)
    8] BORO – 35 – 63 [62] (-)
    9] BKPL – 35 – 62 [63] (+)
    10] DBY – 35 – 61 [61] (+)

    COMMENTS:
    As you were in the top 6 predictions after Saturday, although Coventry are still coming up on the rails (see below). Derby have threatened to break into the top 10 for some weeks and finally managed it after some poor results for others but are too far off the pace. NUFC tightens it grip on the top spot, with even the incredibly mean ‘mean’ final points forecast now predicting us returning over 90 points.

    As I forecast in my pre-match observations, either WBA or Forest looked likely to drop points today. In the end only WBA did. Forest only escaped courtesy of a dubious refereeing decision that denied Swans a clear penalty late in the 2nd half, only to have the ref then give them a less clear cut penalty a few minutes later. Ah, well… we need to win it ourselves anyway. And remember, one Warnock inspired loss doesn’t sink WBA, still a better bet for second place by some way as Forest seem incapable of winning away from home (although they are due up here on the 29th, so that might change especially with our unbeaten home record at stake).

    Boro all but blew it today, and with it any lingering hopes of the play offs. They could have leapfrogged Cardiff, they didn’t. However, Cardiff are still looking shaky so that final play off place is not theirs yet. My tip last week as a dark play-off horse was Coventry, and they are doing me proud. They have turned their incredible consistency during 2010 into wins rather than draws and their points return over the last 8 games is identical to NUFC (despite us hammering them in their only defeat in this period).

    Oh, and my pre match prediction of 2-0 went a little awry when the keeper saw red, so we’ll say no more about it, OK?

    the ZigZag Wanderer

    KEY:
    Pt(M) = mean adjusted final points extrapolation (calculated from previous current form extrapolations).

    Pt(C) = current form final points extrapolation (a volatile figure that can vary significantly game to game, but stays within a narrow range from month to month.)

    TR = TREND: indicates an upward (+) or downward trend (-) in potential final position based on recent form. (….) indicates no significant trend up or down.

  • 2 pondering // Mar 7, 2010 at 10:49 AM

    BS = bull shit

  • 3 Charlietoon // Mar 7, 2010 at 11:00 AM

    Yeah seriously give it up beefy.NUFC win the championship, thats enough of a prediction.

  • 4 Captain Beefheart // Mar 7, 2010 at 11:30 AM

    It’s not a prediction, it’s an extrapolation. The P-o-M forecast 90 points as being the critical total needed weeks ago while others were stupidly talking about 78 or 80 being enough.

    Knowledge is power, we need 90 points and they don’t magically happen.. ask KK.

  • 5 Newutd // Mar 7, 2010 at 11:59 AM

    Thats a load of crap Beefheart. That thing differs from match to match. Give it up. Dont know why you would waste time on that shit.

  • 6 Toon4Eva // Mar 7, 2010 at 1:35 PM

    If you want to get hellbent on looking at data then…

    We extrapolate on average points per game to date for the top 6 teams and assume the same number of points per game for games left then…

    Newcastle will gain automatic promotion as champions with 4 games left to play on 97 points.

    My prediction ;-)

  • 7 Toon4Eva // Mar 7, 2010 at 1:47 PM

    and end the season on 97 points! sorry

  • 8 sirjasontoon // Mar 7, 2010 at 7:10 PM

    Captain Crystal Balls-Get a Life.
    TOOL

  • 9 Mr Books // Mar 8, 2010 at 10:50 AM

    ED – We only get the second parachute payment in August if we are still in the CCC, otherwise it is split evenly between all CCC teams not already receiving a parachute payment. Fingers crossed, what we will actually be getting is the fist tranche of the premiership TV money.

  • 10 maggpie // Mar 8, 2010 at 5:10 PM

    NU 101
    WBA 90
    NF 82

    I have thought for some time 82 points will be enough and I still do and I think we’ll clinch promotion away to Peterboro on 3rd April.
    Incidentally, the average points needed for promotion in the last five seasons is 82.




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