The statement that was promised from the Newcastle club – was finally issued yesterday – and the only really surprising thing in the statement – which we issued earlier this morning, was that there appears to be no transfer fees for new players to be brought in this summer.
Mike Ashley and Derek Llambias
Newcastle’s financial report of last month showed an operating loss of £37.7M for 2008-2009that year and an estimated loss for 2009/2010 of £32.5M. Newcastle United also has an overdraft of £20M that is fully committed.
So basically the club has been spending more than they have been bringing in, and it seems from the statement issued by the club, that will stop.
But the break even time, where money coming in will equal the money going out – or when we’ll even make a profit for heaven sake, will not happen until the 2015-2016 season.
The statement, which is rather long and bland, also stated there is no plan for new capital outlay on players.
That doesn’t mean new players will not be brought in since there are many players who can be acquired as free agents, however we wonder if that means £3M for example, will not be made available for say a Jamie O’Hara.
Having digested the statement for a little while now, there’s really not much in it that’s a surprise for fans, and quite honestly since football is now a global business, it’s about time more clubs ran their businesses properly.
Many clubs have just overspent over the last several years, and their financial competence has been brought into question, and rightly so.
It seems Newcastle are also getting a step up on things – because having the books be balanced, is what UEFA President Michel Platini is pushing hard for for all clubs in Europe – and that’s to stop the nonsense that’s been going on at various clubs – such as Portsmouth, Hull City, Manchester City and others.
As long as Newcastle continue with their Youth Policy and world-wide scouting network – and put cash into those two important areas of the club – we’ll not go too far wrong in the future.
But it’s also true that gone are the days when Newcastle will pay out huge transfer fees and huge wages for players.
Depending on how you look at the return of some of those players we bought in, will largely decide whether that’s good or bad news.