Newcastle are in joint 5th place in the Premier League this morning on 50 points from 30 games and 14 wins.
Newcastle have found thrifty way to build top side
Chelsea are the side above them in the league table in 5th position, above the Magpies on goal difference, and Liverpool are the side in 7th spot, 8 points behind Newcastle.
But when you compare what Newcastle have spent in the transfer market compared to those other two clubs, Newcastle’s high position in the league table puts both those clubs to shame.
At least in their dealings in the transfer market.
Kenny Dalglish has spent big money since he took over at Liverpool a short 15 months ago, yet Liverpool have been beaten by bottom three sides in their last two league games and have not looked good.
Yes, to be fair, they did win the Carling Cup and are in the semi-finals of the FA Cup, so they’ve had some return form the big money they have spent, but they have not performed well in the league this season.
Newcastle have won nothing since the Inter-City Fairs Cup in 1969, and every Newcastle fan is only too keenly aware of that fact.
Liverpool have brought in Stewart Downing (£20M), Charlie Adam (£8M), Jordan Henderson (£16M), Jose Enrique (£6M), Andy Carroll (£35M) and Luis Suarez (£23Mm).
So that’s about £108M spent since Kenny took over at Liverpool.
Chelsea have spent money in the same period on Romeu (£5M), Juan Mata (£23M), Romelu Lukaku (£18M), Fernando Torres (£50M), Ramires (£19M) and David Luiz (£21M).
That’s about £136M spent by the London Club.
In the same time frame, Newcastle have brought in Ben Arfa (£4M), Yohan Cabaye (£4.5M), Demba Ba (free), Gabby Obertan (£3M), Papiss Cisse (£9M), Sylvain Marveaux (free) and Davide Santon (£5M).
That’s a total outlay of around £25.5M for Newcastle.
Newcastle have spent about 24% of what Liverpool have spent, and about 19% of what Chelsea have spent since January of last year.
But Newcastle also have a positive cash flow in their transfers over the last 15 months, when you consider the fees we got for the sales of Carroll (£35M), Enrique (£6M) and Nolan (£4M) leaving the club last year.
The figures used above are only approximate, but they make the point.
And with the new Financial Fair Play Rules being introduced, and football clubs in Europe literally being forced to balance their books, the new Newcastle way is an astute and thrifty way to build a team, while balancing the books at the same time.
And you don’t have to necessarily shell out millions and millions to build a good team.
Newcastle lost only £3.9M in their last financial year, and as a comparison Chelsea lost £70.9M over the same financial period.
The Magpies should be able to turn a profit this year through June 30th, and how many clubs in the Premier League will be able to say they made a profit this year?
Note to Chelsea and Liverpool – Demba Ba could be available for £40M in the summer, and he’s scored more goals than Carroll and Torres combined this season.
And we’re not even going to mention how much Manchester City have spent since August of 2008, but we know it’s north of £800M, but at least they are currently above Newcastle in the league table.
We have to think some clubs will be taking a hard look at what owner Mike Ashley has done at Newcastle over the last couple of years, and it seems a decent blueprint for building a top side, with very little capital outlay in the transfer market.