Things Looking Up At Newcastle – On And Off The Pitch

Newcastle have done very well since the summer of 2009, when we were relegated in May of that year.

Alan Pardew – incredibly positive towards young players

The Newcastle owner Mike Ashley has tried to get Newcastle on a sustainable plan to be completely self sufficient, and it has not been easy.

Being self- sufficient  is to to break even financially, so you don’t spend any more than you take in,  and that is essentially what the UEFA Financial Fair Play rules attempt to do, as they are being phased in over the next few seasons.

The goal is to ensure that Newcastle don’t make  a loss, and Derek LLambias has said that any profits will be  ploughed straight back into the club.

And with the recent financial results with Newcastle reporting they lost only £3.9M compared to previous losses of £33.5M and £37.7M,  Newcastle appear to be right on right track financially.

With costs now well under control,  the goal is to increase those revenues way past the £88.4M, which is where they currently stand.

And you have to remember that in Mike’s first year at the club, in 20007-2008,  those revenues were up at £99.4M, so we’ve seen a decrease in revenues over the last four years, and that’s while top clubs like Manchester United, Liverpool, Chelsea  and Arsenal have significantly increased their revenues.

It’s interesting to note that in 2007-2008 Newcastle still managed to make  a loss of £34.1M with the costs, such as the wage bill, just completely out of control – it was simply non-sustainable financially.

One of Newcastle’s best moves since Ashley arrived is to invest in young players via the Youth Academy and Development Squad, and in the scouting network,  and Newcastle have been able to close some stunning deals in recent years.

They include getting Cheick Tiote for £3.5M from FC Twente, Yohan Cabaye for 4.2M from Lille, and Demba Ba for £2M in agent’s fees from West Ham, since the Senegal striker was a free transfer.

Newcastle Chief Scout Graham Carr has also become increasingly important on Tyneside, and his profile has increased over the last year.

When Peter Beardsley opened a new 3G artificial grass pitch at the city’s Walker Technology College yesterday, which was funded in part by a £102K grant from the Football Foundation,  he had this to say about an  important meeting on youngsters at the club the previous day:

”We had a big meeting about it yesterday, and the manager is incredibly positive towards young players.

“The manager has promoted a lot of youngsters this season and they have had a chance – and I wouldn’t be surprised before the end of the season if one or two more get a chance.”

Newcastle are releasing about 12 players from the Development squad this summer, and it’s a good bet that we’ll see many new top youngsters come through the door this summer.

That will be in addition to maybe three or four top players who will be arriving as part of the first team squad,  and we will be losing players like Alan Smith, Peter Lovenkrands, Dan Gosling, Fraser Forster, Tamas Kadar, Xisco and Nile Ranger, amongst others.

Things are certainly starting to look up at Newcastle – both on and off the pitch.

Now to hammer Norwich City on Sunday!

Comments welcome.

11 comments so far

  • lewytoon

    Mar 16, 2012 at 9:37 AM

    Comment #1

    if we hadnt sold caroll we wouldnt be nearly braking even?

  • lewytoon

    Mar 16, 2012 at 9:38 AM

    Comment #2

    if we hadn’t sold carroll we wouldn’t be nearly breaking even?*

    also i’m not too fussed on Gosling leaving, he’s done nothing and i’d prefer Vuckic to be given a chance.

  • ballerfan2

    Mar 16, 2012 at 9:47 AM

    Comment #3

    ‘if we hadnt sold caroll we wouldnt be nearly braking even?’

    … which makes his sale even more understandable. Also give Ashley credit for understanding the fan’s reaction and turning down £30m. In the circumstances that must have been a very difficult decision. At £35m it really was a no brainer even then – not now and in hindsight.

  • Dannyo

    Mar 16, 2012 at 10:02 AM

    Comment #4

    ehrm? I was under the impression that WITH the Carroll sale, we’d be profiting $32,2 mill last year…

  • Beattie25

    Mar 16, 2012 at 10:02 AM

    Comment #5

    ‘if we hadn’t sold Carroll we wouldn’t nearly be breaking even?’

    I thought I’d just repeat it seen as everyone else is doing it.

  • Beattie25

    Mar 16, 2012 at 10:04 AM

    Comment #6

    Does this mean that to become a profitable football club we have to sell 40 million worth of players every year?

  • oo aa demba ba

    Mar 16, 2012 at 10:05 AM

    Comment #7

    20 million for carroll would have been over priced, to get 35 was very good for the club. As much as i would have liked him to stay as our number 9 and local lad, when it means improving the squad on al front then its worth it.

    For Norwich i’m hoping for the same team that started against Arsenal. Yes there’s no Cisse, but i thought for once we started passing it in the middle of the park which suited Cabaye/Tiote/Ben Arfa/Obertan.

    These are the sorts of games we need to be winning to get into Europe, especially with Liverpool Chelsea and Man City still to play, but I refuse to be disappointed if we don’t qualify for Europe. People need to remember we are a new squad who are adapting, this season has been an overachievement already

  • wynsleap

    Mar 16, 2012 at 10:06 AM

    Comment #8

    Ed – you mention we are losing around 12 young players and around 7 or more first team ‘squad’ players in the close season.
    Do we really think we have the ability to bring in that many new players, in one close season, to take their places especially when the intention should not only be to replace but increase the squads?
    I feel sorry for Carr if that is the case as he is really going to have his work cut out.

  • martoon

    Mar 16, 2012 at 10:27 AM

    Comment #9

    ‘if we hadn’t sold Carroll we wouldn’t nearly be breaking even?’

    Thought I’d join the repeat club – seriously I’m not an accountant but I thought transfers were seperate from club turnover. This figure reflects income and outgoing wages, loan interest etc.

  • MacToon

    Mar 16, 2012 at 3:01 PM

    Comment #10

    Dannyo @ 4 is right, the money for Carroll (player sales and purchases) is seperate.

  • davis_toons

    Mar 16, 2012 at 6:27 PM

    Comment #11

    Just to stay in the tune. if we hadnt sold caroll we wouldnt be nearly braking even?.

    Yes isnt that obvious. Its just a matter of time.When you are spending less than you have earn. What will you get?


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