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.