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News and Commentary On Newcastle United Football Club By Ed Harrison, A Proud Exiled Geordie And Lifelong Fan

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Why Financial Fair Play Rules Are Good For Newcastle

11:27 am, Sunday, January 29th, 2012 by Dr. Ed Harrison · 22 Comments

Alan Pardew has talked about the Financial Fair Play Rules which are coming into operation for European clubs gradually over the next few seasons.

Michel Platini has introduced Financial Fair Play Rules

In a nutshell,  clubs will only be allowed to pay out money that they earn from their revenues as a football club.

In other words they will be forced to balance their books so that losses, like for example Manchester City’s loss of £197M in their last financial year, will no longer be tolerated.

Or at least if clubs like Manchester City do continue to overspend, they will not be allowed into European competition.

As a comparison Newcastle made a loss of only £4.5M in their last financial year, and that’s £192.5M less than Manchester City lost.

That’s the net of it, and we have to hope UEFA stands by those rules.

Those rules are set to come fully into vogue in the 2014/205 season, and the good news is that UEFA  said in Switzerland only last week there would be no exceptions.

Clubs will only be able to record a maximum of £45M losses from next year, and Newcastle should almost be making a profit by then.

This is what Alan Pardew said about the new Financial Fair Play Rules:

This rule can only be a good things for us.  For some clubs I am sure it is a problem or a headache.

For the Man Citys and Chelseas, you know it is difficult to balance the books when you are trying to reach the standards of Manchester United.

For us it will level the playing field a little bit. Hopefully, we can capitalise on that.  We like to think going forward we can generate more income on that front through sponsorship.

Other clubs get that advantage because of the success they have had. However, it will stop the complete overspend which really unbalances the field – like Manchester City have done, with all due respect.

It gives us all a chance.

Newcastle financials over the last four financial years have all been losses – but they are coming down rapidly, once we got back into the Premier League in 2010:

And there is a good chance that in the latest financial year Newcastle could even make a profit.

Newcastle are trying to grow their revenues, so they can spend more money in the transfer market, and that will be true for any European club, once the rules come fully into effect.

Of course the bigger clubs will still be able to spend more money than the smaller clubs, because they have bigger revenues, but clubs like Manchester City and other big clubs like Barcelona and Real Madrid will be forced to balance their books.

That’s got to be a good thing for the game, and why it took so long to bring in these kind of rules, we have absolutely no idea, but the financial running of some clubs in England has been a farce over the last several years.

These new rules will definitely favor Newcastle United, because of our good financial state at the moment.

So there’s some good news this Sunday morning – for a change. :D

Comments welcome.



Tags: Financials · Newcastle News · Transfer News and Rumours



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22 responses so far ↓

  • 1 Indian Magpie // Jan 29, 2012 at 11:29 AM

    Strikers i would have b4 ameobi,

    Jason roberts
    david goodvillie
    simeon jackson
    danny graham
    grant holt
    steve morrisson
    marvin emmnes
    carlton cole
    sylvain ebans blake
    connon sammon
    david ngog
    james beatie

    even robert huth scores MORE Goals

  • 2 Indian Magpie // Jan 29, 2012 at 11:29 AM

    Wor shearer,

    i dont know, i meant thats what NUFC wd value him at, what did brum bid last winter, 1.25 million

  • 3 ToonMauritius // Jan 29, 2012 at 11:34 AM

    little by little we should shipped out average players and replaced them by better players, so as to have more competitive squad

  • 4 JackButler // Jan 29, 2012 at 11:35 AM

    There was a sports financial expert talking about these fair play rules and he claimed that there are so many loop-holes and work-around in these new laws that it actually negates their definition and inclusion in football.

    Can anyone see UEFA banning the likes of Madrid, Barca, Man Utd and the Milan clubs from European football if, or rather when they fall foul of these rules???

    The simple answer is NO, not when UEFA and FIFA are worried about a ‘break away’ European League

  • 5 Wor Shearer // Jan 29, 2012 at 11:36 AM

    Yeah, ok no exceptions to the rule…but we still don’t know excatly how they’ll enforce the rules.

    I can’t see Real or Barca or Man U barred from the Champs League….that wouldn’t make any sense financially or otherwise for FIFA….and we know the one thing FIFA cares about is….yes, money.

  • 6 Wor Shearer // Jan 29, 2012 at 11:36 AM

    @JB

    damn it! beat me to it!

  • 7 ToonMauritius // Jan 29, 2012 at 11:37 AM

    like selling simpson and replaced him with M’Biwa.

  • 8 Indian Magpie // Jan 29, 2012 at 11:38 AM

    THE FAIR PLAY RULES ARE FOR SMALLER CLUBS, WHO ARE IN DANGER OF GOING OUT OF BUSINESS, CAN ANY 1 SEE MADRID, BARCA, MANU GOING OUT OF BUSINESS

  • 9 ToonMauritius // Jan 29, 2012 at 11:41 AM

    And also Amoebi & Loverkrand for two young promosing strikers like Nicky Maynard/Sordell/Rhodes. Alan Smith for Lewis Mc Gugan

  • 10 spitfire_ // Jan 29, 2012 at 11:44 AM

    Ameobi last year sign new contract until 2014… ffs… I forget about that and Pardew obviously highly rated him… everything is just great.

  • 11 RobertNufc25 // Jan 29, 2012 at 11:46 AM

    What a load of crap.
    Man City signed a 400 million sponsorship deal with eithad or whatever there called.

    All the other big clubs will do the same.

    Look at the money Psg are throwing around,Haven’t heard Platini moan about them.

  • 12 JackButler // Jan 29, 2012 at 11:50 AM

    These rules will never work as the biggest clubs in Europe are the one’s with the biggest debts, all it would take is for the top 10/15 clubs to say that they are not going to abide by these new rules and form a break away european league and uefa and fifa will bow down as they would loose hundreds of millions and these two organisations are even more corrupt than harry redknapp, but at least they can read ;)

  • 13 Tiote4PM // Jan 29, 2012 at 11:52 AM

    Ashley didnt speak to Pardew for 2 months after we drew with westbrom on last day of the season and failed to reach top 10.
    He was at the shambles yesterday.

    2 things from this:

    - no cb that I guarantee
    - Pardew is in trouble

    Seriously let down yesterday by a shite front line and poor poor tactics and subs.

  • 14 santoooooooooon // Jan 29, 2012 at 11:54 AM

    sick of all the attacking perch, he actually hasn’t been a bad player at all this season. Hes obviously a determined lad cos he knows he is going to be dropped yet he recently has always tried…

    You lot have just got long memories! If perch was a summer signing we would be saying he was a good signing! Great squad player imo

  • 15 archaeomag // Jan 29, 2012 at 11:55 AM

    @Tiote4pm
    Have you been phone hacking?

  • 16 loztoon // Jan 29, 2012 at 11:55 AM

    This is a total non starter..The only clubs affected will be the smaller clubs..No one is gonna tell Man U,Real Madrid or Barcelona etc what to do for fear of them telling UEFA to stick the CL and start their own competition !!!!

  • 17 JackButler // Jan 29, 2012 at 11:56 AM

    santoooooooooon – Its a shame that one or two of our regular first team players don’t have the same attitude as Perch, but then again, perhaps they don;t have the fear of being dropped like he does. Jonas and Simpson seem to be just going through the motions without fear of loosing they’re place

  • 18 nufc mad man // Jan 29, 2012 at 12:13 PM

    the express reporting wolves show interest in loven and best hope it’s true and bid for carroll or get him on loan but what ever we do it had better not be a swap deal for ba also daily star reports totenham having clear out which includes bassong leaving i think he will be the defender we should get and can be used as cover for taylor he may dislike being on the bench but with taylor so injury prone:(

  • 19 UTD111 // Jan 29, 2012 at 12:17 PM

    Surely clubs like Chelsea and Man City will immediately find that they have massively increased legitimate sponsorship money coming in from Etihad and Abramovich

  • 20 NothingButNewcastle.com // Jan 29, 2012 at 3:34 PM

    Can’t see them changing a thing tbh

  • 21 swoopingmagpie // Jan 29, 2012 at 7:07 PM

    we’ve got to make a start somewhere and this will do for starters. The whole situation is ridiculous when the premiership is dominated by a few wealthy clubs and win everything in sight. The whole situation must be evened out somehow and I admit it will be difficult to achieve,but it must be attempted.

  • 22 arctoa // Jan 30, 2012 at 12:52 AM

    All the random off-topic berating on these posts bemuses me.

    As for the financial fair play rules, they’ll never be enforced. UEFA won’t risk triggering the clubs into forming their long-mooted break-away super-league, as in the long run that would ruin football across the continent.




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