No Plan For Capital Outlay On Players – What Does That Mean?


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.

Comments welcome.



You can share this articleShare on FacebookShare on Google+Tweet about this on TwitterEmail this to someonePin on PinterestDigg thisShare on LinkedInShare on RedditShare on Tumblr

42 comments so far

  • Chris F

    May 10, 2010 at 11:05 AM

    Comment #1

    well we can but hope that it means while ashley won’t be putting any more of his own money in, whatever spare turnover there is from the increased sponsor/tv money, can be used on players.

    typically obtuse statement from our oh so transparent board, like.

    0
  • DJM TOON

    May 10, 2010 at 11:07 AM

    Comment #2

    agreed Ed

    what i read in that statement is that they’ll play their cards close to their chest… good

    they’ll get the club on an even footing, good

    if they do go for players, we wont know about it, and neither will anyone else until they sign… good

    dont really see where the problem is

    after watching MOD last night… i dont think we have to worry about west ham, stoke, birmingham, wolves wigan and the like anyroad

    0
  • Charlietoon

    May 10, 2010 at 11:12 AM

    Comment #3

    I think there will be funds available for the right players as the statement also says a lot about how they will deal with agents. I think it is a case though of making it clear there is not a 15 mill warchest or 10 mill just sitting there to be spent but f it is needed and players are to be bought it will happen behind closed doors

    0
  • Ericles

    May 10, 2010 at 11:18 AM

    Comment #4

    No capital outlay means that none of the “capital” of the club will be used in the transfer market. So, in reality, that means only one thing. Players, construed as capital, will be sold in order to bring in other players. That is not outlay that is outgoing! Ashley is a bandit – and not in the interests of NUFC or the fans.

    0
  • HendoNUFC

    May 10, 2010 at 11:21 AM

    Comment #5

    Put simply, there will be no additional funds available for the acquisition of players.

    As the statement outlines, we will rely on promotion from within (i.e. the products of our youth system) and I assume this will be offset by the acquisition of out of contract players and transfers funded by the sale of current players.

    This does NOT mean, however, that we will be relegated first time of asking. It makes it more difficult yes, but with the current squad, minus a couple and plus a couple of shrewd transfers, there is no reason why we can’t survive.

    To be honest, the worst thing we can do is throw money at the situation and increase debt when we are making such losses. The situation DOES require stability, and slow, sustainable growth in order secure the future of the club and return to where we want to be. The situation requires sensible and realistic fans too.

    0
  • JMC

    May 10, 2010 at 11:22 AM

    Comment #6

    I totally agree!

    This doesnt mean that there wont be any players coming in!

    What people STILL dont seem to realise is that believe it or not, the owners are trying to help the club!!

    Think of our youth set up, we got to the FA youth cup semis; the final winners’ senior team have just won the biggest comp of all in this country; the premier league title!

    Its not all doom and gloom. Take time to reflect. on the statement…

    The Halls and Freddie have destroyed the finances, now we’re gonna have to wait a few years for Ashley to put it right!

    Have faith in our players and youth!!

    Look at the likes of Forster, Vukic, Ranger, Inman, Tozer, Donaldson, Danquah, Godsmark, Ferguson, Airey, Adjei, Spear, Tavernier…

    This is our future! Not silly ‘has been’ signings!

    0
  • greekgeordie

    May 10, 2010 at 11:23 AM

    Comment #7

    As a statement says nothing, but reading between the lines NUFC will be nobody’s fool anymore! the new face of football is live within your means, and with the support and income that the club has we should be well ahead of the majority of the premier league clubs.
    Now is down to CH and his staff to idrntify what we need and deal on a realistic way to strengthen the squad. The basis of a good enough side to compete in the premier is alresdy there and with 2-3 additions and suitable promotions of some of our talented young players we might be start thinking of grandeur years to come in the future.
    Stay together and support the Club, and Club includes the board too.

    0
  • macn0ble (Finland)

    May 10, 2010 at 11:25 AM

    Comment #8

    1st of all, All I can say is Fair Enough!

    I understood that;

    1. Ashley as owner of NUFC will not install any of His money for transfers this season or in any coming seasons. All of the money must come from the club itself, weather it is budgeted, or coming trough player sales

    2. He wants the money, owned by the NUFC to him, back and to stabilize the ratio between income and expenditure to healthy numbers

    3. They will not speculate on any terms in the media about the transfers, comings or goings (which is, in my opinion, excellent. The agents pull up the prize of their clients by the paper talk, check out what happened in Roman Pavljutchenko 2 Brum deal)

    0
  • JMC

    May 10, 2010 at 11:27 AM

    Comment #9

    Forster, Ranger, Vuckic, Inman, Adjei, Spear, Donaldson, Ferguson, McDermott, Tavernier, Godsmark, Tozer, Airey, Newton…

    These are our future, not silly big money ‘has been’ signings!

    Have faith lads

    0
  • big bob

    May 10, 2010 at 11:31 AM

    Comment #10

    jmc of these players only about 3/4 will make it in the top 2 leagues and when they/if come through will be sold on at a profit in a few years times as ashley has stated in his model for nufc

    0
  • repo

    May 10, 2010 at 11:31 AM

    Comment #11

    well sorry about the news but the likes of enrique taylor colo barton are going to be sold..

    0
  • greekgeordie

    May 10, 2010 at 11:32 AM

    Comment #12

    Ericles a Bandit takes only, the statement clearly says no new money will be coming fron now on.
    I am not an Ashley fan and I blame him for what has happened to NUFC, but give him a chance and the events since january have indicated that present set up should be allowed to carry on at least until January 2011, and only then we can start accessing the position and revert to any comments that might be appropriate, be pattient my friend and enjoy the present Good days, have a nice Summer.

    0
  • Ericles

    May 10, 2010 at 11:33 AM

    Comment #13

    Five year plan means we are saddled with Ashley for another five years. Heaven forbid. Ashley and Co have turned our dreams back into a nightmare in one fell swoop. It is not acumen Ashley thrives on it is acrimony!

    0
  • Jamesthefirst

    May 10, 2010 at 11:35 AM

    Comment #14

    First off:

    1 – Capital Outlay means no new signings unless we raise money by selling people. ie if CH raises £10 million in sales then he will have ALL that money to spend.

    2 – Glad they are finally realizing that they need to keep their mouths shut from now on. No more circus. THIS IS GOOD NEWS

    3 – Vuckic and the other kids will all be willingly and continually promoted to the first team. This is excellent news. CH is going to be forced to start playing the youngsters.

    4 – “I’m not going to bankrupt the club” is bascially what Ashley is saying. All incomings will be used to clear the debts. Again, good news

    5- Ashley intends to still be here in 2015. Not sure I’m happy about this part

    And regardless of ability (or lack of in some cases), this CURRENT squad DESERVES a crack at the Premiership. Their the players that fought like hell to get us back so give them a chance to prove themselves again.

    As someone pointed out, against the bottom 10 clubs we will be fine. Because we have a togetherness and team spirit that money cannot buy. Man City couldn’t buy any leaders, and our dressing room has lots of leaders.

    0
  • SuperShearer

    May 10, 2010 at 11:35 AM

    Comment #15

    We keep talking about O’Hara but our midfield is strong. Promote Vuckic and they are like for like are they not? With Nolan, Guthrie, Barton, Smith and Vuckic we have a strong central midfield. In Jonas and Routledge our wings are strong but lack depth if injury occurs. Colo, Taylor, Simpson, Enrique make a good back four with Tozer and Kadar waiting in the wings. We have a wealth of talented Keepers if Harps gets injured. Up front Caroll, Loven, Ranger, Shola and Best will suffice but maybe one natural goalscorer to feed off Caroll. On other words next season our main priority is to survive the drop. It has to be based on this season in the Championship. For the first time since Bobby Robson went you fee like the team want to play for each other and if they can maintain that spirit next season I think we will beat the drop. Then Ashely will either look to sell or will look to invest in a solid and growing business proposition. Yes it’s frustrating that we will not have any new faces, unless CH can loan or free sign, but we are rebuilding and by the sounds of it in an intelligent and financially viable manner.

    0
  • Davies

    May 10, 2010 at 11:38 AM

    Comment #16

    Good, intelligent posts lads. Glad to see this hasn’t been misunderstood and pulled out of context. The papers are having a bit of a go mind. They clearly don’t like the idea of making do with whatever news the club gives them. Expect a major fuss over Carroll’s upcoming court case.

    0
  • macn0ble (Finland)

    May 10, 2010 at 11:40 AM

    Comment #17

    Ericles

    Yeah, Asheley, for sure, made mistakes, but it was FF who took the club into it’s current state by sacking SBR, hiring that tw@ Souness and backing him with millons of “future” money.

    The only thing that has blocked us to be in administration is Ashley, who has taken all that loan to himself. And now he wants it back, wouldn’t you want it too if it was your money?

    0
  • Craigg

    May 10, 2010 at 11:41 AM

    Comment #18

    Having read this last night, I hope that its Ashleys Barry Chucklesque way of lowering expectations before the new season, Also nipping ridiculous press stories like the supposed potential signings of Lavezzi, Wright-Phillips and Upson in the bud.

    I cannot see Chris Hughton who has banged on for the majority of the season about a lack of strength in depth allowing Butt and Pancrate to leave knowing there is no funds to replace them.

    CH has also been saying how he will build up the Coaching, Medical and Scouting personnel at the club over the summer, Hardly a clever move when he has no money to spend on a playing staff lacking sufficient cover at LB, CB, A bit of creativity in the midfield and a genuine proven top level strike force.

    When most papers, Radio stations and TV channels come up with the same story there usually is some truth in it and all i’ve heard for the last month or so is how Hughton has a kitty of £15m.

    It won’t cost a huge amount to give us what we lack James Beattie is available for £3m, Aruna Dindane for £2m, Ledley and Senderos on free transfers and Van Aanholt, Rajkovic and Stoch more than likely to be loaned out by Chelsea again next season to name but a few.

    I reckon its Llambias trying to portray Ashley as a martyr like he did in January when despite a supposed lack of funds we signed Routledge, Williamson, Simpson and for some reason Best.

    On the other hand if we do have to sell to buy I dont really see moving out Best, Ameobi and one of Krul or Forster as such a bad thing, If we could get the supposed £10m for Vukcik then that may be worth looking into, If it helps bring in the 4-5 players we need.

    0
  • big bob

    May 10, 2010 at 11:45 AM

    Comment #19

    scary when you say loven ranger shola and best will suffice
    i must watch different football to you
    nolan guthrie barton smith vuckic battlers at best where is the creative player/players which are needed
    routledge/jonas
    routledge not good enough for fulham/spurs
    jonas couldnt hack it first time round
    if people think this team will say up just because of team spirit then we are in trouble
    team spirit helps but doesnt score goals

    0
  • nightfa11

    May 10, 2010 at 11:57 AM

    Comment #20

    i see that statement as they dont want to talk about TW… we might be after some players (cmon..we have scouts across the europe..in france watching PSG, Lille matches etc)..i’m sure we’ll be after some players..i guess they just dont want to comment on that cos we might miss out on primary targets…end we end up with nothing.. so…if this happens we probably wont spend on “average” players & we’ll sign them on loan..which is a smart thing to do.. least this is how i see the whole situation..

    0
  • SuperShearer

    May 10, 2010 at 12:06 PM

    Comment #21

    Big Bob, no disrespect mate but Jonas is a starter for Argentina i think he’s good enough for the Prem. he was settling last year and at times looked lethal. Remember Man Utd? He was awesome on the counter. Routledge was never given a proper at those clubs but i think will prove them wrong next season. Barton and Vuckic are more than battlers they can be very creative on their day. Barton has a great eye for a through ball. I agree our strikers could struggle but if there is no money then they will have to do. UNLESS we can get say a Marcheda on loan. SAF might like the idea of him getting regular games which he would for us. Utd are bound to bring in a striker this summer and keep Berba as a back-up which would mean less chance for Marcheda. Worth a punt for a loan deal i think.

    0
  • freddie

    May 10, 2010 at 12:08 PM

    Comment #22

    It means that newcastle will get relegated at the first attempt. There will be a mini league of the 3 promoted teams and wigan all fighting to avoid the drop.

    0
  • Wilad

    May 10, 2010 at 12:11 PM

    Comment #23

    One word….. Arsenal. Same model…..

    0
  • big bob

    May 10, 2010 at 12:12 PM

    Comment #24

    jonas is not suited to the premier league think he will leave in the summer and return to spain with a top team vuckic has only played 3/4games not sure how he would fair in the prem if barton gets a run of games then he can be a great player like when he was at man city but in the 3years or so he has been here he has been very average
    if i was colo,enrique,jonas,and heard this crap coming out of nufc gob i would want a transfer players want to be challenging euro not struggling to stay in prem

    0
  • freddie

    May 10, 2010 at 12:17 PM

    Comment #25

    I bet Sunderland fans are licking there lips at the prospect of facing newcastle at the stadium of light. How times change.

    0
  • nightfa11

    May 10, 2010 at 12:18 PM

    Comment #26

    big bob – energetic, strong, technical, passionate player is not suited for EPL? any team wants players like gutierrez in their squad. the work he does on the pitch is amazing. we must not let him go.

    0
  • Craigg

    May 10, 2010 at 12:24 PM

    Comment #27

    SuperShearer

    Totally agree about Routledge he went to Spurs on the back of shining for Palace and rarely got a chance due to their ridiculous transfer policy of buying as many players as humanly possible during Jols time there.

    He was also fighting a losing battle at Villa where O’Neill rarely drops his favourites and as we’ve seen with Beye who was outstanding for us yet cannot get past the average Young and Cuellar who is a centre half for the right back spot.

    Routledge final ball is better than the majority of the wingers cappello is taking to africa with him, Easily better than Lennon, SWP and Walcott and Milners now regarded as a central player as his crossing was pub standard at times.

    0
  • SuperShearer

    May 10, 2010 at 12:25 PM

    Comment #28

    Nightfal11 totally agree mate. Jonas loves to run at players which is something that Prem defenders hate more than anything else. Add to this a big man in the box and he’s crucial to the way we will play next year. If we let Jonas go we’re in trouble. Having said that if he has a good world cup we could command a big fee for him. But he has repeatedly said he loves it here and that is worth a lot in this current state of football.

    0
  • nightfa11

    May 10, 2010 at 12:38 PM

    Comment #29

    SuperShearer – even if sbd offers us 20 mio i wouldnt accept:) he must stay..at least for the first season back in epl.. he represents a threat..& forces other players into making mistakes… without him we’re another stoke.. first this current team (with few addidions) needs to see they can cope with top 12 epl teams before we sell our key players & replace them with new ones (hopefully better ones) 🙂

    0
  • SuperShearer

    May 10, 2010 at 12:54 PM

    Comment #30

    Nightfall11 I agree but if someone offered 2o mil for him then he would go. CH and Ashley would see that as a sound return and would then use 10 mil of it to buy a replacement. It’s not what I want but that is the business plan that has been set out. Frankly 20 mil could buy a lot of talent. The Reading winger for starters would look like a cheap replacement for Jonas. I want our squad to stick with us next season I think they have earned that right to prove themselves after their last shot in the top league.

    0
  • freddie

    May 10, 2010 at 12:58 PM

    Comment #31

    craigg- pmsl at comparing routledge to lennon and swp. Routelge didnt make it at spurs because he isnt prem quality. The lad will never make an england squad with lennon, swp and walcott ahead of him. pmsl.

    0
  • nightfa11

    May 10, 2010 at 1:02 PM

    Comment #32

    SuperShearer – ur right.. i guess everyone would sell him for 20mio.. but how would him leaving effect our players is another matter..

    but yeah..it wouldnt be a smart move to sell a key player & then give his replacement a full season to gel in our squad..at least not in first season back in epl…when we have no idea how we’ll do..& we only have 2 wingers…

    i have no idea where we’d finish this year in epl with current squad:) i guess we’ll see how strong we are when we lose 3 matches in a row..

    0
  • 2_goal_tino

    May 10, 2010 at 1:22 PM

    Comment #33

    JMC- Danquah and Godsmark have just been released- so they most definitely are not our future.

    0
  • Craigg

    May 10, 2010 at 1:32 PM

    Comment #34

    freddie

    Read my post again i never once mentioned Routledge should be in the England squad, I said his final ball is decent which is something we have lacked from our “wingers” since Solano and Robert.

    Geremi, Duff and Milner have cost us a fortune and yet couldnt do the most basic thing for a winger which is beat the first man when crossing a ball.

    Wright-Phillips and Lennon are constantly criticized for hitting the first man and Walcott has to be one of the most overrated players in my lifetime.

    Until Routledge gets a fair crack at the premier league we wont know if he is up to it, He certainly looked the part at Palace.

    In your opinion then would you regard the likes of Delap, Craig Gardner, Karl Henry, David Jones, Barry Ferguson, Carr, Jerome, Carsley, Kitson, Whitehead, Parnaby, Vignal, Gary O’Connor, Maierhoffer, Ebanks-Blake, Keogh, Mido, Jloyd Samuel, Gavin McCann, Dickson Etuhu, Chris Baird, Gary Caldwell, Jason Scotland, Craddock as good enough for the premier league ??

    The self styled best league in the world is a joke there are 8 sides and a lot of dross, How else can bigminham finish 9th with a minus 10 goal Difference and Blackburn 10th with a minus 14 goal difference and 2 away wins.

    The sides between 10th and 20th won about a dozen away games between the all season.

    0
  • Craigg

    May 10, 2010 at 1:35 PM

    Comment #35

    Thats meant to say Birmingham not Bigminham

    0
  • SGToona

    May 10, 2010 at 4:28 PM

    Comment #36

    Having been a subtle reader of this site (great job Ed!) for quite some time, I have never really developed the urge to comment until now.

    As frustrating as the official report may seem, which understandably shaken up a few fans, there is a light at the end of that tunnel.

    Some fans have been suggesting that MA had not learnt his lesson and that we will become a yoyo club like some other clubs.

    However, please try and take a minute to absorb what we have achieved this year – Champs of the Championship, Top defensive record, 1 of the few clubs to reach 100pts tally, record attendances, record number of clean sheets, sky high morale etc etc. This is all achieved with the majority of last years players + a few of more than decent players (signings or on loan). While some may argue that these players are championship quality at best, I say these are champions whom proved that they are the best in this league. Now the least they deserve is a chance to in the EPL and prove the nayers/doom mongers/death merchants etc wrong, exactly what was achieved this year (newcastle to do the next leeds this season – remember?)

    Coming back to the club statement, it did forbid the signing of players. What it did mentioned is that there will be no capital outlay. Simply put, shrewd loan signings and freebies (and there are quite a few talented ones this year to suit our needs (not wants)) are still open for discussions.

    So I implore you, the loyal fans of NUFC, let us be more positive and give the lads a chance. Do what we do best, pack the stadium, sing our hearts out and intimidate the shite out of the opponents. Who knows? MA might just decide to surprise a few of us and do what was done the last Jan transfer window.

    Half cup full … at least till somewhere ard mid season.

    0
  • henok

    May 10, 2010 at 5:35 PM

    Comment #37

    That means I will kill my self soon am nit joking

    0
  • greekgeordie

    May 10, 2010 at 5:40 PM

    Comment #38

    SGToona nice one my sentiment also, the Club and the Team surpassed all expectections, and I would like someone to tell me in living memory which other team has done better than NUFC in the Championship?
    This team made us proud to be a Newcastle supporter, please come on give them a chance.

    0
  • yuwing

    May 10, 2010 at 6:12 PM

    Comment #39

    i felt that the youth policy will be hard to achieved as NU is not MU, even though we r famous but we cant attract much youth players, so i think we should stay afloat in PL then we go look into the youth

    0
  • Widowmaker

    May 10, 2010 at 6:20 PM

    Comment #40

    Is there any needs to publish a statement to tell everyone that MA is tight?

    You know the answer.

    Bad timing

    0

You must log in to post a comment.