The New Newcastle United Financial Plan Issued

We all know that Newcastle will not go back to spending ridiculous amounts of money, often for no return, for mediocre players,. and it has been made clear today that is so true.

Mike Ashley – will stick to rigid business plan

The days of Newcastle wanting to pay out £26M of money they didn’t have for forward Wayne Rooney, a trophy signing if ever there was one, are over and we’re glad about that.

That was at the time Newcastle desperately needed defensive reinforcements  and it happened in the summer of 2004, and it was then unknown to then manager Bobby Robson, who was later sacked at the end of August of that year – because 5th top of the Premiership wasn’t good enough.


Those were the days of Freddy Shepherd spending big money the club never had, and we now have some financial constraints in place at the club – and we think that’s good.

We also think that PL clubs will be forced very soon by Frenchman Michel Platini, the UEFA President, to bring their financial houses in order, and to have to be told to do that is just amazing, and shows the levels of  financial incompetence  that exists today in the Premiership.

Maybe tomorrow we’ll bring out a report on the current Premier League club finances, and we were staggered and shocked to find so many clubs with wages above 90% of revenues – are they crazy?

Exactly who are the financial wizards are  running these clubs for heavens sake?

But most fans know Newcastle United are now on a new path, one of financial sensibility and stability, and growing our own players within the club, near the banks of the Tyne.

What better place could there be to learn your football?

And a Newcastle source has basically confirmed the new direction today, which should hardly come as a surprise, as a Newcastle club source talked about Mike Ashley and his plans:

“He is looking at making sure Chris can compete with the bottom nine in the Premier League and will give him the funds to do so.”

Cost-cutting measures over the past year have ensured the club will go back up on a sound financial footing.”

“Players will come in – but they won’t be paying over the odds for anyone. This is the new Newcastle.”

That’s not really too surprising when your think about it, because these days it’s hard to compete with the top clubs, when you come up from the lower level of play in the Championship.

And next season hopefully, will be a  stabilizing season for the Tyneside club.

But we still expect Newcastle to do quite well next season, and we’ll soon know who exactly Newcastle will bring into the club this summer.

Comments welcome.

59 comments so far

  • AngerOfTheNorth

    Apr 7, 2010 at 1:40 PM

    Comment #1

    So next season is about consolidation. Sounds realistic.

    This also makes it clear to other clubs that we don’t have big money to spend so can’t be held to ransom.

  • Kevin Nichol

    Apr 7, 2010 at 1:45 PM

    Comment #2

    I honestly believe that four quality signings rather than 5 or 6 average players will see us do very well in the PL next season. I feel a budget of 10-12 million is more than adequate to bring in the four players i feel we could benefit from.

    The big thing for me is that we bring in players with PL experience and not take to many chances;


    Leon Best (nothing short of woeful; we need 5 strikers in PL; Ameobi, Carroll, lovenkrands, ranger + 1 new addition)

    Nicky butt – out of contract

    Pancrate – out of contract

    Alan Smith – to slow for the PL + on big money ( we need a creative pacey central midfielder)


    Curtis Davies – 4/5 million (Not getting a sniff at villa)

    Jamie O-hara – 4/5 million

    Carlos Vela – Season long loan ( i’m convinced this lad will score goals in the PL; a real talent with plenty of pace)

    Joe Ledley – Free transfer (out of contract at end of season; has had injury troubles but still only around 25 and has plenty of skill and ability; the one of my signings who has not played PL football yet)

  • localhero1995

    Apr 7, 2010 at 1:46 PM

    Comment #3

    I agree totally with this new scheme at Newcastle United. For the first time in years, the club’s financial state looks quite decent. I still think there is a massive need for some investment in to the club in the summer. Here is what I would do in the summer:

    Players Out:
    Leon Best- 1/2 million
    Fabrice Pancrate- Contract End
    Nicky Butt- Contract End
    Xisco- 2/3 million
    Ryan Taylor- 1/2 million
    Fitz Hall- Loan End
    Shola Ameobi- 1/2 million

    Players In:
    Jamie O’Hara- 3 million
    Kevin Doyle- 4 million
    Gareth Bale- 3/4 million
    James Tomkins- 2 million
    Junias Stanislas- 2 million
    Jack Collison- 3 million
    Andrew Driver- 5 million
    Alan Hutton- 2/3 million

    Plus some more probablies. Not much spent for young players really. By the way do we know how much we got/ didn’t get for Geremi??

  • geoff777

    Apr 7, 2010 at 1:46 PM

    Comment #4

    Why does everyone believe this “Newcastle Source” – The press have columns to fill, and believe it or not make things up.

    Then bloggers read the quotes of the “Newcastle Source” in the rags and suddenly everyone’s talking like the club has made an official statement.

    Really nobody has said anything about transfer kitties and targets …

    Nothing has been confirmed about any new direction.

    Stop this incessant repeating of press statements.

  • localhero1995

    Apr 7, 2010 at 1:48 PM

    Comment #5

    * Junior Stanislas, sorry my error.

  • Jamesthefirst

    Apr 7, 2010 at 1:55 PM

    Comment #6

    @Kevin Nicol – I’d take Carlos Vela in a heartbeat. Terrific finisher. He’d be a big hit with the fans.

    As much as we agree some players are not PL quality, one thing they do have in common is that they have all worked very hard to get us back to the Premier League and as such deserve a crack at it before some of them are phased out in Jan and next summer.

    We don’t need big money to stay in the league and am happy to see Ashley seems to be thinking the same.

    We also have a lot of good youngsters at the club who will make a big impression here over the next few years (Forster, Kruhl, Ranger, Vukic)

  • AngerOfTheNorth

    Apr 7, 2010 at 1:55 PM

    Comment #7

    Hmmm, good point I guess Geoff – it is silly season and even though I try to avoid these things, even I’m falling into it.

    Even bearing that in mind though, I can’t see MA coming out and declaring the size of CH’s transfer budget, or saying that he’ll have a “blank chequebook”. It’s almost certainly going to be a cagey summer, with very little information and a few sensible signings.

    By the way Ed, if I could ask, if there’s one message to hammer home over summer it’s that the fans shouldn’t expect MA to come out and tell them his transfer plans. Some people seem to think that this is a private conversation between the club and the fans. MA won’t tell anyone anything as he’d stand to lose millions if clubs we’re buying from know how much we have to spend – millions that could be spent on extra players.

  • bill

    Apr 7, 2010 at 2:04 PM

    Comment #8

    Couldn’t agree more geoff777.

    The speculation about all of this is rubbish. I guess if you print enough rubbish you may hit lucky once in a while – cannot remember that occasion though.

    I’m a bit sick of the lack of ambition shown on a number of these blogs. Debt is only bad when you cannot manage it. Unfortunately, a lot of football clubs don’t seem to have much business acumen.
    How many people buy a car for cash? It’s very simple, you set out your budget, taking into account any mishaps and you also have a back-up plan in case of disaster. This is normal business practice.

    I personally hope Mike Ashley leaves the club in the Summer so that I can return to St James’ Park once more.

  • nightfa11

    Apr 7, 2010 at 2:07 PM

    Comment #9

    st: vela or bojan – 1 season loan (they wont get as many matches as club would want so they might send them both on loan..which gives us a year to find a striker)

    amr/l: zoran tosic (3-4 mio)

    amc: dzagoiev or ireland (i think both of them are realitic targets – 8 mio should do)

    dr: hutton (could do better then him) or anyukov (3-8 mio)

    those 4 would cost us about 15 mio & our squad would be way stronger.

  • GeordieMeerkat

    Apr 7, 2010 at 2:13 PM

    Comment #10

    There are two things for me.

    Firstly, no more signing one dimensional mercenaries. Let’s try to get well-built players with at least a decent amount of pace with a good work ethic that will fit into the current group.

    Secondly, let’s not ignore older players completely. If they cost nothing, or next to nothing, and are the sort of player needed then sign them up. The reason I say this is that Nick Montgomery is out of contract this summer as well. Like Smith he’s not creative but he’s a bit quicker and far more experienced in that holding role, plus I’m sure he’d love another crack at the big boys.

  • lesh

    Apr 7, 2010 at 2:17 PM

    Comment #11

    So a club spokesman said:

    “He [MA] is looking at making sure Chris can compete with the bottom nine in the Premier League and will give him the funds to do so.”

    What? Just what is the unnamed person saying?

    Surely we want to be competing with the lower middle nine – not the bottom nine? Should some one not have pointed out that the bottom nine includes the bottom three!! I trust that the club’s ambition is to keep out of the drop zone!

    I have no problem with what is a practical and sensible aim – consolidation then building on from there but we must be longer-term aiming for big things as time goes by.

    There was a time when Jack Charlton was managing the club and when asked, after a pre-season friendly what his ambition for the season to come was, he was pilloried for stating it as……… ‘avoiding relegation’.

    That sentiment is much the same as the current statement and fans must be sensible and see it for what it is and carry on supporting the club as there will surely be disappointments.

    Be realistic guys as anything better than just avoiding relegation is a success in our first season back in the Prem.

  • BT7MAG

    Apr 7, 2010 at 2:38 PM

    Comment #12

    As depressing as it is to say, I hope the club don’t keep us entirely in the dark with signings until their names are on the dotted line!

    Too often we’ve been linked to a player, their agents/our manager/the inside source has leaked info and then their price sky rockets…It’s not worth it!

  • AngerOfTheNorth

    Apr 7, 2010 at 3:04 PM

    Comment #13

    @BT7MAG – to be honest, as frustrating as it is, I hope the club DOES keep us in the dark. It’s the only way to ensure that info isn’t leaked and that the prices rocket. The best thing to do is try not to think about NUFC over summer until news of concrete signings come through.

    The World Cup should help keep us occupied!

  • bobby_ollox

    Apr 7, 2010 at 3:38 PM

    Comment #14

    For the first time in living memory I can say about the team, that there is not a lot wrong with the back 4 ( 5 including Harper) – it is further forward where I think we have a team that will struggle in the PL.

    Apart from Andy Caroll, who could have a terrific season, and possibly spidie, the rest are of good Championship standard only.

    We need someone alongside Caroll, and at least one proper winger – and desperately need a playmaker for midfield.

    Oh for any one of Shearer/Waddle/ Ferdinand Beardsley/Lee/Gascoigne /Ginola/Asprilla


  • Hepi Mag

    Apr 7, 2010 at 3:41 PM

    Comment #15

    The club needs to be a bit more canny when it comes to our transfer dealings.

    We should be focusing on places where you can buy good quality players at reasonable prices. Other teams have show us that if you do not have a massive transfer kitty then this is the best way forward.

    I would have scouts dispatched to Honduras, Ecuador, Costa Rica etc as well as establishing a high quality scouting network in Scandinavia.

    Other teams have brought in quality players like Palacios, Figeroa, MG Pederson and Valencia for comparitively little. Just because someone is not a household name does not mean they are rubbish. Surely buying rough diamonds and polishing them up is the way forward. If they flop then we aren’t stuck with a Luque/Xisco situation where the player was/is on a fortune and we cant get rid without bankrupting the club.

    Guys like Roy Hodgeson have shown that you dont necessarily have to spend hundreds of millions to thrive in the Premiership. There are plenty of bargins to be had out there.

  • wsquare

    Apr 7, 2010 at 4:12 PM

    Comment #16

    The credibility of this article is suspect.


    Apr 7, 2010 at 4:19 PM

    Comment #17

    NUFC scouting system crucial to our future given ashleys direction and financial managment, which i agree with. current squad good enough for PL although imo bottom half. squad still needs cover in many positions; ch/lb/cm/cf. if CH is astute there will be bargains, lots of good young players in the top half of the championship and players could be nabbed from west ham/portsmouth.

  • geordie jock

    Apr 7, 2010 at 4:22 PM

    Comment #18

    I am a little bit worried about the back four because Colo and Enrique were so bad last year even though they have improved drastically this season against inferior opposition, Williamson has not played at the top level but looks promising while Simpson is not good enough. In midfield Jonas will be a liability against good opposition as he showed on monday when he went up blind alleys and continuously lost the ball keep Barton , Routlidge maybe Guthrie. Up front keep Carroll, Lovencrands and Ranger then bin the rest. Bring in six players Left back, right back, centr back, left midfield, playmaker and striker and use our promising youngsters or else what is the point of signing them. And i still want Ashley out of our club.

  • Geordie-Gerrard7

    Apr 7, 2010 at 4:26 PM

    Comment #19

    its a good idea, i hope we can be a team like everton, and compete with the rest without spending the earth

  • Kebabacus

    Apr 7, 2010 at 4:44 PM

    Comment #20

    It would be nice if the club bought sensibly and developed youth effectively, and then once every couple of seasons bought a big name for big money – a big name with actual talent, rather than the Luques of this world.
    This way, over 7 or 8 seasons we could progress up the league.

  • geoff777

    Apr 7, 2010 at 4:54 PM

    Comment #21

    The New Newcastle United Financial Plan Issued

    Where can I read this plan?

    All the way through these blogs you write “we”.
    Surely you just mean “I” Ed?

    Please write in the first person.
    You aren’t a spokesperson for an organisation of any kind.

  • Tom4Nufc

    Apr 7, 2010 at 4:59 PM

    Comment #22

    Geoff mate, chill out! This is only a blog and a place for Ed to show his opinions, and report rumours, facts, interesting stuff about our great club!

    Ed has explained the whole ‘we’ thing before and without trying to cause any tension, if you don’t like it, don’t read it!


    Apr 7, 2010 at 5:23 PM

    Comment #23

    geoff777 i have seen the sort of garbage you shout about in workeys blog or should we call you workey.Dont think you are a newcastle fan i think you are anti nufc so get back to your own blog sado

  • shear-class

    Apr 7, 2010 at 5:23 PM

    Comment #24

    The Newcastle source is David Craig from skysports news, i listened to him yesterday when talking about competing with 9 other teams against relegation what utter garbage

  • Tom4Nufc

    Apr 7, 2010 at 5:32 PM

    Comment #25

    Haha shear-class, your right… you in there right mind would say that at the club?! As you say garbage!

  • Ed Harrison

    Apr 7, 2010 at 5:36 PM

    Comment #26

    I think we have to get our scouting system put in place – yes – absolutely – and it’s not good enough yet – but we’ll need to spend money there.
    Better investment of £10M or so there, in our scouting system then on one player like Albert Luque, or Boumsong or Marcelino – as just 3 example.
    And then I think we need to know what to do when lads like Tamas Kadar are ready to play. We need to loan them out – like Arsenal do – but also watch them closely as Chris seems to be doing with Fraser Forster.
    I don’t think it’s silly to compare Newcastle to Barcelona now – the Spanish side are a great model we should be building to – and I know we are nowhere near yet – but in 2-3 years time – who knows.
    At least we now have a plan that will not cost us millions and millions each season just to buy top players – we’ll make most of them.
    It’s not easy and yes – we need top scouts – and it needs to be a global scouting system – but I’m convinced this is the right way forward for Newcastle. It’s just my opinion of course. 😀

  • Ed Harrison

    Apr 7, 2010 at 5:38 PM

    Comment #27

    For those of you who would like Newcastle to buy a player for £ 20M – you’ll be very disappointed in the next few years though – that’s also true.
    Remember Michael Owen cost the club £ 40M over 4 years and we got 30 goals back from him.
    We have 18 goals already from Peter Lovenkrands – in just over a year – and he cost us nothing.

  • Tom4Nufc

    Apr 7, 2010 at 5:45 PM

    Comment #28

    Ed I completely agree with you on everything you have said, although most of the goals for Lovenkrands where in the Championship! Although as you say, £20 million for a player, with wages of what? 80k a week+ won’t get us anywhere and in the past hasn’t. Pay reasonable sums of money for players properly scouted and I am a massive fan of the age limit/wage limit which has been put in place by Ashley!

  • Mags

    Apr 7, 2010 at 5:50 PM

    Comment #29


    I am sceptical of you not being able to name your source for this piece. Even if it had been issued by Llambias, I would still be sceptical as the bloke is a proven liar.

    I am just enjoying the moment knowing we have gained promotion thanks to the hard wok of the players and manager. My sole concengtration now is enjoying the last 5 games, and hoping the players keep pushing to achieve finishing top of the league, nothing less than they deserve.

    Thanks Coca-Cola, I have enjoyed my time with you all, the clubs, their players and their fans. A down-to-earth, no-nonsens set of people and a pleasure to be part of you. In some ways I will miss the total honest of this division.

    As to next season and the ins and outs. My biggest wish is that Ashley could find us a decent new owner who will steadily consolidate our position in the premier league. Anything else will be a bonus.

  • Mags

    Apr 7, 2010 at 5:55 PM

    Comment #30

    Oh I meant to add, our management need to look at how they are blooding our youngsters who are coming through. Kadar is a case in point, at 19 he saw us bring in a very good young lad from Chelsea, Patrick Van Aarnholt – who was also 19; now what does that say to Kadar?

    We will face similar problems with Krul / Foster. I mentioned Foster some months ago, as a mate of mine who has always followed the youngsters closely,maintained whilst Krul and Foster are both very good, in his opinion young Foster was the better prospect. His showing at Norwich and the fine words from Stevie Harper seem to prove this kid is very good indeed. If we do not get this aspect right, then we will be in serious danger of losing the kids we have nurtured.

  • Tom4Nufc

    Apr 7, 2010 at 6:11 PM

    Comment #31

    How is that possible? Rooney starts for United… Unbelievable!

  • toon soldier

    Apr 7, 2010 at 6:28 PM

    Comment #32


    ledley =free
    s.larsson =free
    j.albin =free
    n.montgomery =free

    seems to be within our range 😀

  • Captain Beefheart

    Apr 7, 2010 at 6:29 PM

    Comment #33

    When Notts Forest were promoted under Cloughie he stuck with the core team plus Shilton, Francis and few free journeymen (including our own unwanted Frankie Clark) to win the League and then become European Champions. Individually, arguably, it was no more talented a core team as we have now, but collectively it became unbeatable. The Chelski model is only one way to go – and it still hasn’t landed that elusive European silverware yet!

  • AndyMac

    Apr 7, 2010 at 8:23 PM

    Comment #34

    On the amount of money available. Would you go in to your second hand car dealers showroom and tell him exactly how much you have to spend ? No. Its a pointless exrecise telling the world that we have £XXm to spend. Lets just wait and see who arrives.

    On the players available to play in the Premier League I just dont think the squad we have now is too bad. Bearing in mind they had four different managers and a fluctuating ownership issue to contend with last season and all the wasters have disappeared. An up and coming Dorrans (£10m) in midfield plus a flexible right sided defender in the mould of Hutton (£5m) and a striker such as Beckford for nowt would do OK. Plus any other Bosmans and loans WHO CAN GENUINELY ADD QUALITY to this squad.

  • Charlietoon

    Apr 7, 2010 at 10:05 PM

    Comment #35

    Local hero if you think we can get bale from tottenham for 3/4 mill your an idiot. Sorry to insult you but its just the stupidest thing I have heard in a long time. Firstly he is playing very well so they would not sell. If they did it would be for 10 mill not 3 to 4

  • sirjasontoon

    Apr 7, 2010 at 10:30 PM

    Comment #36

    Kevin Nichol-Curtis Davis….never gets a sniff at villa cos he is on a treatment bench most days.


    Apr 8, 2010 at 4:09 AM

    Comment #37

    Captain Beefheart the Chelsea model is not the way to go.Without the mega bucks owner Chelsea are just a small club mate,he ever leaves Chelsea will go bust mate.

  • tripp

    Apr 8, 2010 at 5:51 AM

    Comment #38

    NUFCELITE, beefheart said the Chelsea models is ONLY ONE way to go, not “the” way to go. I had to read it twice myself.


    Apr 8, 2010 at 6:25 AM

    Comment #39

    tripp ya i know what hes say, what i meant was Chelsea way was defo not the way to go.Just surprised a wily old fox like Captain Beefheart would even suggest that route.


    Apr 8, 2010 at 7:01 AM

    Comment #40

    bill only a wally would cut his nose off to spite his face won’t ya say.Got a empty seat in front of me all season,if its yours cant say i missed your big head getting in the way ha ha.But don’t worry mate, im sure the club will have no trouble selling your season ticket to some 1 else that wants to watch premiership football next season mate.Hopefully he has a smaller head than yours ha ha .


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