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!