Carroll Cash Invested Into Players’ Wages – Strange Indeed


When Alan Pardew said in February the Andy Carroll cash would all be reinvested into the club, including the wage bill,  it raised a few eye-brows.

Alan Pardew – Carroll cash has been reinvested

And with the net tranfer fees this summer being close to zero, many fans are wondering where that £35M has gone, but the words coming out of Pardew and a week or so ago – also out of Managing Director Derek Llambias – is that the whole £35M has been reinvested into the club.

This morning, once again, Alan Pardew has been asked where the money has gone, even though it’s really not his question to answer – with Ashley and Llambias in charge of the finances at the club.

But they don’t speak to the fans,  so we never get any answers out of them – and that’s unfortunate.

This is what Alan said this morning to the Newcastle press corps, when asked once again where the £35M had gone:

“I think the Andy Carroll sale has been a big part of what we’ve done because the wage bill has gone up quite a bit,”

“I won’t go into specifics – I do not think it is fair. Other clubs don’t do it so we’re not going to do it.”

“Some of the costs of a transfer like Demba Ba, they are hidden costs to a certain degree. These free players don’t come cheap – they are expensive.”

“I also think we need to make sure that over the next three or four years we grow. Our finances have been structured in a way that the team grows each year. So that’s where some of the logic of what we have done is to do that.”

“I think with the players that we’ve brought in, we never really got the benefit out of Hatem Ben Arfa last year. But then we got him, Ba, Shola, Lovenkrands – we have a little bit of an overload as well at the moment.”

“I think it would be helpful if we did actually move one or two players on. I think then we could be in a situation where we bring in another player as well as a striker.”

Alan is even saying that  the five year deal to Cheik Tiote would not have been made without the  £35M windfall from Carroll, and also the excellent five year deal offered to Jose Enrique, which he will not sign and seems to want to leave Newcastle.

But if the club are going to count investment in terms of wages over the length of the contract of new players, then to be accurate you have to also consider the wages of players who will leave the club too.

Sol Campbell has left so there’s a £40K/week saving and other players will also leave in the summer. and if Jose and Joey leave there’s a  £100K/week savings –  £5M a year savings in wages.

As an example in this way of looking at things financially, Michael Owen cost a £17M tranfer fee from Real Madrid, and £110K/week over four years of his contract, so in Ashley terms, that cost to the club was around £39M, but that’s not the way most fans think in the transfer market.

But it is the total cost to the club for a player over the length of his contract.  Indeed in today’s world we couldn’t have afforded Owen, because that’s around £4M more than we got for Andy Carroll.

It’s a stange way indeed of talking about the cash being reinvested, and we don’t think that’s the way other clubs look at things.

Liverpool have spent £105M in transfer  fees already, but with the wages included over the contracts of their new players, then that investment will be around double the £105M.

In those terms Andy Carroll (£70K/week over five years)  cost the Liverpool club an additional almost £18M in wages, so the total cost of Andy was around £53M to Liverpool.

It’s strange indeed, at least to us it is – but that;s where the  £35M has gone.

Comments welcome.



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63 comments so far

  • G

    Jul 15, 2011 at 9:44 AM

    Comment #1

    Angryman is gonna love this thread!

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  • gall ogate

    Jul 15, 2011 at 9:46 AM

    Comment #2

    this is a total con by the way, this is a case of we reinvest this money so any money we make from tv, and other sales, tickets, shirts and the like we can keep…… but we told you we wouldnt touch the carroll money……..hes nowt but a cockney spiv.
    i cant believe we fell for this crap again…

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  • Toonboy_83

    Jul 15, 2011 at 9:47 AM

    Comment #3

    Stupid, the TV money, the sponsorship money, the merchandise money and the matchday money should be spent on paying for players wages; and not the money from Andy Carroll.

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  • shearermania

    Jul 15, 2011 at 9:53 AM

    Comment #4

    football has lost its charm…its rotten to the core – from Blatter and the way down..
    when the epl allowed these foreign billionaires to come in and throw money just for the fun of it – it sealed its own death.
    I was angry yesterday when news about zoggy and joined the chorus of “where’s the money gone”.
    bit i have slept and i will never want a billionaire owner who wishes to run a buisness on a loss just to win some foootball matches and then leave it drained when he has enough…
    liverpool 105mill so far transfer fees only…..makes me puke…
    Unfortunately Ashleys way is the right way….(god that was hard to write)i do feel sorry for pardew he takes all the punches…i think hes the one who comes out of this with most credibility.
    If i bought an investment i would want a return….football or any business can not be run like chelsea, liverpool. city…..ill settle for ashley any day over debt or a billionaires play thing

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  • shearermania

    Jul 15, 2011 at 9:53 AM

    Comment #5

    you can shoot me down now….

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  • kevymartins

    Jul 15, 2011 at 9:54 AM

    Comment #6

    Its so patetic how MA can spend 1 mil in a casino in 10 mins…Then can offer that golfer a 2mil bonus if he wins…But yet he cant pump 20 mil of the say what 40+ the club has made..Its a joke

    Thats why he is the worst club owner in histroy….Like ffs we have money spend it..on quality players…not on injury prone players wages ffs

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  • toontoonnufc

    Jul 15, 2011 at 9:55 AM

    Comment #7

    its went from carroll money going on players to being reinvested into the club to not leaving the club to most has bin spent on wages.
    kinda harsh words but i hope we get relegated again to teach the fucker a lesson. weve missed out on zoggy becos 10 mill was to much uve got to be kidding me srsly dont c any light at the end of this tunnel. and if ba marveux and arfa get knocks again next season we are in big trouble

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  • ilovetoon8788

    Jul 15, 2011 at 9:56 AM

    Comment #8

    liars liars! pants on fire!! stop insulting us!!

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  • Stuart

    Jul 15, 2011 at 9:56 AM

    Comment #9

    Worst club owner in history? Id take MA over the last few Portsmouth have had like haha.

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  • Robby Bobson

    Jul 15, 2011 at 10:02 AM

    Comment #10

    Kevymartins…Why should ashley pump his own money into the club..especially when he just gets abuse. Not many owners actually use their own money, livin in fantady world. Freddy shepherd spent millions on playets from bank loans whilat him and sjh took massive dividends each year….

    I couldnt really care if cabaye ba and marveux cost 5 million or 35 million they are good players.

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  • Spoonz13

    Jul 15, 2011 at 10:02 AM

    Comment #11

    Strange ED? Really? I don’t agree especially when you consider we were reported to be close to financial meltdown when the fat cockney took over.

    As much as it pains me to say the club is operating in the right way. Maybe not from a fans point of view but we all p**sed and moaned about Freddie Shephard and he was the one who nearly bankrupted the clubs will purchases such as Owen, Luque Viana (and countless other expensive flops).

    I recognise i’m in the minority on this blog who thinks the club is moving forward and is being ran in the right way, so feel free to call me any of the following because i disagree:-

    *Muppet
    *Idiot
    *random expletive

    What really narks me though is fans questioning the running of the club when they seemingly don’t have any clue about finances and how transfers etc work!

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  • liddz

    Jul 15, 2011 at 10:03 AM

    Comment #12

    does this mean if we hadnt sold AC, we would have spent #### all this window……

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  • billy15

    Jul 15, 2011 at 10:03 AM

    Comment #13

    This is so stupid and annoying. Doesnt the sponsership and tv deals cover the wages, let alone the fact that newcastle get 52 000 passionate supporters at every home game whether we lose or win. Doesnt the ticket sales and seaso tickets cover the wages, along with the merchandise sold. In addition to this, if MA really wanted to progress and be at Newcastle dont you think that he could invest some of his own money in to club, as ive heard Sports Direct made 200 million in profits last year. This is gonna be a tough time for us the transfer window, as MA wont cough up the cash for us to progress, so we’ll jus end up bargain basement buys and will struggle to finish in the top 10. But theres still hope.

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  • guymaxwell

    Jul 15, 2011 at 10:04 AM

    Comment #14

    The argument being put forward by the club is actually the correct one; we have to be realistic and accept that there is a pot of money which is spread across both wages and transfer fees. That is sensible, if dull.

    However, I would love to examine the books, because with the departures of Campbell and Nolan, I am certain that our net wage bill has not increased that significantly, certrainly not the extent that the Carroll transfer money has been spent.

    So while I agree with the business model in order to create a sustainable football club, I do rather suspect that the club is trying to pull the wool over our eyes. This could be so easily dealt with by spelling out what has happened – if some debts have been cleared that is fine, we might not like it, but at least we would know where the money has gone.

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  • josh_toon

    Jul 15, 2011 at 10:04 AM

    Comment #15

    I Have to say I do miss the BIG money signings as it is exciting and all that, but Liverpool spending THAT much seems CRAZY!!!

    Give it a few years like this and I think we could be a REAL force. Finacially this is the ONLY way to continue and as Pardew says year on year the wages etc can grow meaning better and better players.

    Look at what Sunderland have done, brought older soon gonna go down hill players, our concept is 1 of the best right now.

    Keep the Faith!!!!

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  • outsidethebox

    Jul 15, 2011 at 10:07 AM

    Comment #16

    look back over ash reign …..one leaves then one joins …ash gets rid before he buys …thats why we miss out on targets ..as soon as smith or ranger or enrique leave ..then we will buy a replacement …naylor and nzog got sick of waiting for free spaces …simples

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  • laurentrobert32

    Jul 15, 2011 at 10:08 AM

    Comment #17

    agree with stuart. people need to remember, the window still has not closed. if we sign a striker for £8m in the next couple of weeks, get a young back up full back and keep enrique and barton (dont really mind if xisco/perch/ranger/routledge go, cant see them featuring anyway), i for one will be very happy with this window and feel the squad will be significantly stronger than it was last season. also i think some funds will be held back for january in case of injury to the likes of ben arfa, ba or marveaux.

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  • toonincheek

    Jul 15, 2011 at 10:09 AM

    Comment #18

    What was said about the £35 million after the AC sale was double talk – can be interpreted almost any way the owner wants.

    A bit more straight talking would be helpful, but we need to wait and see what the remainder of the transfer window brings.
    I don’t expect big things but I’m sure MA is ready to spend up to £12 million-ish for a top quality striker, worthy of the No. 9 shirt, or a bit less for someone who isn’t.
    The money we have offered for Erding is still available, for him or someone else.

    If MA was telling AP to say we had spent only £5 million of the 35 and still had plenty of money available in the coffers, you can just imagine what transfer fees would be demanded for any players we wanted.

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  • josh_toon

    Jul 15, 2011 at 10:10 AM

    Comment #19

    laurentrobert32 – I AGREE!!!!!

    Can’t wait to see which striker we get in.

    Could be very exciting.

    I Love the idea of a 4-3-3 thats what better teams are doing at the moment.

    Maybe

    ————-Krul————
    Simpson-Colo-Taylor-Enrique
    —Cabaye—Tiote—Barton—
    -Ben Arfa—Ba—–Erdinc—-

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  • Offkey

    Jul 15, 2011 at 10:11 AM

    Comment #20

    @ Spoonz13

    You will be insulted if you state people dont have a clue while you take the position of know it all. Please provide me with your qualifications on running a football club and dont say FM2011.

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  • NUFC_Richyg01

    Jul 15, 2011 at 10:13 AM

    Comment #21

    ED,

    You keep setting up these articles to get the neggers going again!

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  • lekech

    Jul 15, 2011 at 10:13 AM

    Comment #22

    I wonder when pardew will stop making bold claims like keeping this player and/or spending big money, only to slap himself in the face when pushed by fat ash to explain for each failure.

    Man, this comedy at our club is starting to get less funny by the day.

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  • unclepauly

    Jul 15, 2011 at 10:14 AM

    Comment #23

    does anyone remember that quote by keegan on ESPN when carrol got sold, he was taking about pardew and he said “you ain’t seeing any of that 35 million mate”….and then Ed wrote a blog slating keegan, saying he was sad and bitter (or something like that)…seems like you need to retract your words Ed as keegan was spot on…

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  • NUFC_Richyg01

    Jul 15, 2011 at 10:14 AM

    Comment #24

    We only currently have £30m of the £35m anyway.

    The extra £5m is appearance and performance based.

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  • Stuart

    Jul 15, 2011 at 10:14 AM

    Comment #25

    @richy – Ed is negger in chief these days man lol.

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  • JAMSHA

    Jul 15, 2011 at 10:15 AM

    Comment #26

    Fk FAT M.A

    KING KEEGAN WAS RIGHT! FAT M.A WILL FILL HIS POCKET WIT DA AC MONEY WE GOT.

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  • Robby Bobson

    Jul 15, 2011 at 10:17 AM

    Comment #27

    Plus look at the bloody date.

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  • JAMSHA

    Jul 15, 2011 at 10:17 AM

    Comment #28

    @Unclepauly, ur fkn dam right. Keegan was spot.

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  • NUFC_Richyg01

    Jul 15, 2011 at 10:17 AM

    Comment #29

    @23

    Keegan is a numpty and there are some people need to crawl out of his ar$ehole.

    The only time he did us good was when he was first manager, he should never have come back.

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  • macn0ble (Finland)

    Jul 15, 2011 at 10:18 AM

    Comment #30

    All of this is pure speculation. Ed, please stop writing about that 35m. This is getting boring.

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  • NUFC_Richyg01

    Jul 15, 2011 at 10:18 AM

    Comment #31

    @25

    Yeah, making the blog less appealing by the day.

    If it gets any worse it will need re-branding NUFCBog

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  • Davies

    Jul 15, 2011 at 10:20 AM

    Comment #32

    I really don’t care about this. As long as I have a decent starting 11 come kick off, I’ll be happy.

    I’m not a politician, accountant or a billionaire, and I haven’t the first clue how to run a football club. I know which players I’d like the club to buy, but if we don’t get them I’m not going to cry about it. I just want to watch football.

    The absence of a weekly release is f**king killing me.

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  • ginkoh

    Jul 15, 2011 at 10:20 AM

    Comment #33

    They just try to fool all of us. All Pardew word is not make sense at all. Totally unreasonable.

    Pardew try to mention our expense to maximum (include players wage and even laundry fee) but tell our profit to minimum (did he ever talk about TV revenue,etc ? no !)

    If they want to tell us they need 35M from Carroll to make club finance stable by use it to pay for players wage. So what if we didn’t sell Carroll ? Don’t we have to sell half of our squad this season to pay the wage ? When you buy player, we have to calculate totally wage too ? If use their logic, you need more than 300M transfer fund to sign Only one Messi. fuxx it !

    And how about Sunderland, AstonVilla, or even Westham. Half of English team will bankrupt within 1-2 years if the Pardew tell the truth because they have to get more than 15M from every transfer windows to stay alive in finance.

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  • Spoonz13

    Jul 15, 2011 at 10:20 AM

    Comment #34

    @Offkey

    I never said i did have a clue mate which is why i’m not moaning about it. I’m simply going to turn up tonight (and more importantly on the 13th August), cheer the team on, and accept that perhaps finally Ashley et al do have some brains between them and can run a football club successfully. Apart from selling Andy Carroll you can’t say the club hasn’t been moving forward from being relegated. That’s all I’m saying.

    Oh and i think FM should be taken into account. I’ve never failed to win a title with Newcastle! 😉

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  • Davies

    Jul 15, 2011 at 10:21 AM

    Comment #35

    I do have strong feelings on the Enrique issue mind. Time to ship him out. Wasted place on the plane to the states.

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  • JAMSHA

    Jul 15, 2011 at 10:21 AM

    Comment #36

    Spot on*

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  • stuart no9

    Jul 15, 2011 at 10:26 AM

    Comment #37

    it seems a few fans on here seem surprised the money is going towards wages , and not what any other ambitious club would do, buy new players , why , because AP said it would? because lamparse said it would ? and more important , who some people strangely seem to think isour saviour said it would? you are talking here about the 3 BIGGEST LIARS in football some people will just have to learn DONT BELIEVE A SINGLE WORD THAT COMES FROM THEIR GOB they tell more lies than tom pepper, and we all know what happened to him , we all have to put up with it untill he sells up

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  • geoff777

    Jul 15, 2011 at 10:27 AM

    Comment #38

    They really are insulting the fans.

    Shame the price of season tickets isn’t performance related …

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  • solano

    Jul 15, 2011 at 10:35 AM

    Comment #39

    Richy (29) don’t you remember having a rather good run under KK at the end of 2007/8 where we started to play some really good stuff and went to places like Spurs and totally annihilated them? I can’t remember going into a close season so hopeful that we would once again start moving in the right direction after the Souness and Allardyce periods – but then we all know (even the court noted it) that the regime consistently lied to the best manager we’ve ever had. Don’t try to re-write history you jumped up little prick….just because you can’t handle the truth and can’t acknowledge that someone who possesses more passion for Newcastle United in his stools than Mike Ashley has for pies, was correct! I’ve never been back for 3 years but have got over the KK debacle so you should get over this obsession with stupidly defending the indefensible.

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  • samigee14

    Jul 15, 2011 at 10:38 AM

    Comment #40

    I am foaming about this like. it is newcastle worst nightmare. pardwho is just ashleys bitch. no other club in th world take players wages and lenghts of contracts into account. we wont even keep these players for the 4 or 5 years we are offering them. so when they get sold will we get the money back. no will we F**K

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