The Newcastle financial statement for the previous year are due to be released this Thursday.
Mike Ashley – reduced the wage bill by 30%
And the news is that the wage bill has been significantly reduced, as was expected since during that time, the Newcastle club was playing in the Championship with reduced revenues coming in.
We’ll have to see just exactly what the results hold later this week, but the early news yesterday was that the wage bill was cut by £21M to £50M, and that’s just a trifle under 30%.
Newcastle’s wage bill during the relegation season was £71M, and was the 6th highest in the Premier League, yet the club was still relegated, and the owner has every right to ask what he was getting for those wages – not much would be a good answer.
That £71M was far too high when you look at Newcastle’s revenues in the relegation season, which we believe were £89M, so the wages were about 80% of revenues – far too high.
Big wage earners like Michael Owen, Mark Viduka, Obafemi Martins, Habib Beye, Shay Given, Damien Duff and Geremi left the club in 2009, and most of them have hardly been missed.
Viduka retired and Michael Owen is way down the striker pecking order at Manchester United, and has been seen on the bench this season, but hardly ever plays, and still has those hamstring problems,
It’s really a complete waste of Micheal’s talents, because he could still get some goals if he played for a mid table side, but the problem with Michael seems to be he’s lost his passion for the game.
And he’s even come out and said that he’d rather play only a few games for a side winning trophies, than play all the time for a side struggling in mid-table.
So you see what we mean.
Newcastle’s revenues in the Championship would be a lot less than half of the £89M made in the previous season, and it will be interesting to see the state of the Newcastle finances on Thursday.
Mike Ashley loaned the club at least £30M to see Newcastle stay above water last season, as they were quickly promoted back to the big time.
The finances take on added significance of course next season, because the UEFA Fair Play Rules go into effect, and the European clubs essentially have to balance their books over the next three years or so.
What a concept that will be for some of these big spending clubs,who simply continue to borrow money to buy expensive players.
A short 18 months ago AC Milan had debts of over £400M and were said to be losing £60M a year, but that will not stop them trying to pay out £10M to get Newcastle’s Jose Enrique in the summer.
That’s just one example of the financial suicide being committed by many of the world’s top football clubs.