Financial Strategy Sound – Agents Want Their Players At Newcastle

Some of the things that Mike Ashley and Derek LLambias have done in their tenure at Newcastle have hardly gone down well with the fans.

Managing Director Derek Llambias and Owner Mike Ashley

But Alan Pardew has come out today and said that  if Newcastle are going to be in good enough financial health down the road,  then the club just have to generate more revenues.

Certainly the selling of Andy Carroll and the renaming of St. James’ Park to the Sports Direct Arena have hardly been well accepted by the fans.

Although the massive £35M received for Andy and his mediocre form for new club Liverpool, have tempered the fans anger that the local striker was sold in the first place, thirteen months ago.

Alan Pardew has talked to the Sunday Mirror today and tries to put things in perceptive from a financial viewpoint for Newcastle fans:

“The strategy Mike Ashley and Derek Llambias have followed has put the club in a position of relative financial strength.”  “Compared to a lot of other football clubs we are in a good place.”

“You have to worry after what has happened last week that a couple of other clubs could be in trouble this summer – but we are not in that position.”  “That is down to Mike and Derek.”

“That policy of buying younger players and being very tough with contracts and shifting the power a little bit from players back to the club has proved so far to be successful.”

“There are a couple of other models that have been similar. Spurs have gone down that line and bought young players,  but are now in a position where they can actually buy experienced players.”

“I think, hopefully, that is now the next phase for us. Where we are right now-we are pretty healthy.”  ”One of the big things that has helped me is that the agenda is out in public.”

“That is important that Mike and Derek come out and say: “this is the financial climate-this is how we work.”  “So that makes it a little bit easier for me.”

“But we will still have problems down the line. Losing some of our best players to the best clubs is still going to happen because we are still not in a position to stop that.”

“But we won’t be able to protect our best players until we get more revenue and bigger sponsorship in.”  “The higher up the table we finish the easier it will be to attract not only new sponsors but also top players.”

“We are now getting sound-bytes from agents that they would like to get their players here. It is a good sign.”

Newcastle are definitely getting back into good financial health, unlike clubs like Portsmouth and Glasgow Rangers we may add,  and the Tyneside club’s revenues (turnover in English terms) over the last few years show the dip caused by relegation and the resulting improvements:

And as far as the profits go,  we don’t have any – but these are the losses Newcastle have had over the last four financial years.

And they have  at least decreased noticeably once Newcastle got back into the Premier League eighteen months ago, and had the wage bill under control from previous years, and the club could even make  a profit in the next financial year,  which closes on June 30th this year:

So from a financial viewpoint the club seems to be  going in the right direction, and we just hope we can finish high up in the league table,  and maybe even still qualify for European competition next season.

But our form will have to improve greatly from the last couple of league games.

Comments welcome.

9 comments so far

  • Toonboy_84

    Feb 26, 2012 at 7:56 AM

    Comment #1

    I am the one and only.

  • rwpoynter

    Feb 26, 2012 at 7:59 AM

    Comment #2

    This has to be the way forward. Hopefully the days of crazy spending are over. It was said the other day that a lot of championship clubs are on the verge of administration and who would have thought a club like Glasgow Rangers would be in trouble? Ashley undoubtedly has his critics, but his financial strategy is bang on and the club are in 6th position.

  • Ericles

    Feb 26, 2012 at 11:26 AM

    Comment #3

    I have a query – one that the Ashley fan club could consider. Perhaps even answer. Since the travesty of the change of ground name and the shameful removal of the ground’s name from the walls a question arises.
    Ashley only owns the buildings and the club as such.
    What is the situation of ground ownership? Surely that
    still belongs to the Newcastle City Fathers? Is the pitch
    ours but not the buildings? Does the fat man not own a single blade of grass? Clarification would help us all.

  • Ericles

    Feb 26, 2012 at 11:38 AM

    Comment #4

    Remember all of you who praise Ashley that Wor Jackie Milburn’s ashes were laid at St James Park NOT the Sports Direct Arena.

  • philippealbert

    Feb 26, 2012 at 11:51 AM

    Comment #5

    Well done men

  • wynsleap

    Feb 26, 2012 at 12:04 PM

    Comment #6

    Ericles @ 4
    The likes of Jackie Milburn, Joe Harvey and Sir Bobby would have been absolutely disgusted by the removal of the St. James Park name.
    Like all true Newcastle United fans.
    By the way Ed – financial stability may be a good thing but it doesn’t win championships or cups and isn’t likely to.

  • bills-son

    Feb 26, 2012 at 4:15 PM

    Comment #7

    wynsleap – financial stability may be a good thing but it doesn’t win championships or cups and isn’t likely to.

    Try telling that to Man U and Chelsea the only two clubs to win the Prem in recent times. Or City if they win the Prem this year.

  • max

    Feb 26, 2012 at 4:56 PM

    Comment #8


  • custurd

    Feb 28, 2012 at 7:35 AM

    Comment #9

    Re: “Financial stability” + “Try telling that to Man Utd and Chelsea”.

    Are you kidding? Both clubs (plus Citeh) are in debt up to their ears, spending well outside of what they generate. Rich owners are taking the p**s out of the European “fair play” ruling and if Uefa had any nads at all they would make good on their word and ban these debt ridden clubs from European competition. But they won’t because they know European cup games would lose their attraction without them. Besides, there are always loopholes to exploit; Like sponsoring your own club for £400 million with a kick-back to sweeten the council owners. What does Ashley pay again?


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