Magpies Halve The Wage Bill And Have A Much Better Side


It somehow seems against the Conservation of Energy.

Mike Ashley – excellent job of  Newcastle reducing wage bill

Matter cannot be created or destroyed – as I recall – but Newcastle have done something which is really weird – they have more than halved their wage bill and yet are challenging for a top four position in the Premier League.

The news is in the ESPN Magazine’s Global Salary Report, and Newcastle’s total wage bill is now a lot lower than we thought it was.

For all sports teams, including football, baseball, basketballand the like, Newcastle are in 127th place and last year we were in 63rd place,  in the table of  total wages per player the teams pay out.

Here’s the table of the top 11 teams, and Newcastle who are on the bottom row, were in 127th place.

Position and
Team
Average Yearly
Wage
Percentage
Change
Total Wage Bill
1. Barcelona $8,680,56910$217,014,221
2. Real Madrid $7,796,6376$194,915,932
3. Manchester City $7,403,75426$185,093,858
4. Chelsea $6,795,89913$169,897,463
5. Los Angeles Lakers$6,278,088-4$87,893,233
6. New York Yankees $6,186,322-8 $197,962,289
7. AC Milan$6,104,7698$152,619,219
8. Bayern Munich$5,907,6522$170,231,332
9. Philadelphia Phillies$5,817,9651$174,538,938
10. Internazionale$5,700,915-5$142,522,871
11. Manchester United $5,521,4236$138,035,567
127. Newcastle $2,239,808-34$55,995,199

The figures are in US $ but multiple by about 0.62 to get UK pounds.

So Newcastle’s average wages per player are £1,388,680 and the total wage bill for this year is £34,717.023, and when you consider the wage bill when we were relegated back in May of 2009 was a massive £74M, that’s a huge decrease in Newcastle’s wages.

It also shows that Newcastle were able to cut their wage bill in the last year by 34%, just over a third – unbelievable.

And with Newcastle’s revenue around £89M the wages are about 38% of revenue and that’s very low, and at the moment Manchester City’s wage bill exceeds their total revenues – so no wonder they lost £197M in the last financial year.

And it helps to explain just how well Newcastle are getting their financials in order.

This is all good new,s because Newcastle have a top side and they are not paying big wages (yet), although the wage bill will increase as Newcastle become a regular member of the Premier League top four – if Newcastle become a regular member of the Premier League top four.

Newcastle will be a poster child for how to get your finances under control, and also how to build a top team without spending huge transfer fees,  like clubs like Manchester City and Liverpool have done – to name but two.

And as Newcastle’s revenues increase, with European competition etc – the plan is to keep Newcastle on an even keel, and any  profits will be poured back into the  Newcastle coffers.

That’s according to Derek Llambias, so increased revenues mean that the wage bill can go higher, and we can bring in better players.

Whether you love or hate owner Mike Ashley – you have to admit it’s all working beautifully at the moment.

Comments welcome.



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62 comments so far

  • lewytoon

    May 8, 2012 at 12:30 PM

    Comment #1

    first

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  • the_besty_show

    May 8, 2012 at 12:36 PM

    Comment #2

    News just keeps getting better and better, something has to go wrong soon with ashley in charge. Mans making the whole of the country look like idiots

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  • Novocastrian66

    May 8, 2012 at 12:45 PM

    Comment #3

    I think Newcastle must be lumping out big signing on fees, to keep wage expenditure under control. Small transfer fees, large signing on fees, generous bonuses, reasonable salaries. This is a theory not based on any facts other than the salary table displayed.

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  • nden85

    May 8, 2012 at 12:47 PM

    Comment #4

    we still have highly paid players as well, but you don’t mind paying the likes of colocini £70k a week when he’s pushing you into europe and getting in the team of the year. its when you pay pricks like owen £120k a week to get you relegated when you begin to truly hate and resent footballers.

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  • the_besty_show

    May 8, 2012 at 12:52 PM

    Comment #5

    i think if we want to keep all our star players we will have to give some of them big wage rises or bigger clubs will poach them with offers of double/triple wages

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  • aussietoonfan

    May 8, 2012 at 12:54 PM

    Comment #6

    are all you negative so called “supporters” gonna just sit there and let Ed praise Mike Ashley like he has done.
    Absolutely disgusting if you ask me. Crawling to our “no-idea”, “dictator” owner.
    What has Mike done to deserve such praise exactly?

    Got us to seriously challenge for Champions’ League just 2 seasons back from relegation?
    Ridiculous!

    Bought players at well under market value and seen them become one of the most successful teams the EPL has seen this season?
    Rubbish!

    Turned around a massive debt and put Newcastle on the road to financial prosperity?
    Utter Crap!

    Come on guys! I can’t do this by myself!

    Just when you want the whingeing &%$#@es to speak up they’re nowhere to be found!

    GOOD!!!! AND LONG MAY IT CONTINUE!!!!!!!!

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  • catchy in norway

    May 8, 2012 at 12:57 PM

    Comment #7

    its about time fifa step in and do something about this, i thought they were gon a do something a few years ago,,

    its unfair that teams like chelsea madrid man c psg and many more are just buying success , i know we nearly do it in the 90s, but now its got out of hand

    i also think to shake up the end of the season to make it more exciting, the top 6 teams from the season before should all face each other, for there last 5 games each, this would allow new teams to break into the top six, given them a chace of europe, this given them more cash

    what do you guys think

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  • CODARM (The poster formely known as Ibizatoon)

    May 8, 2012 at 12:57 PM

    Comment #8

    Aussie…At last. Someone to stand up to the horrid plague on our club that is Mike Ashley! Get him out now before he ruins this fine club!

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  • CODARM (The poster formely known as Ibizatoon)

    May 8, 2012 at 1:00 PM

    Comment #9

    catchy…so next season our last 5 games would be Man City, Man U, Arsenal, Spurs and Chelsea? That’d be a nice 15 points guaranteed in the run in. Can’t see that even being considered, would make for an exciting end though (a bit too exciting for me).

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  • nden85

    May 8, 2012 at 1:01 PM

    Comment #10

    Out:

    Lovernkrands – free – (20k p/w)
    Guthrie – free – (20k p/w)
    Smith – free – (60k p/w)
    Kadar – free – (5k p/w)
    Simpson – £4m – (20k p/w)
    Best – £2m – (15k p/w)
    Ranger – £1m – (5k p/w)
    Xisco – £500k – (50k p/w) *may have to contribute towards his wages

    Total fees = £7.5m
    Total wages = £195k p/w; £10.1m p/s

    In:

    Excitement . . . . .

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  • Novocastrian66

    May 8, 2012 at 1:02 PM

    Comment #11

    What this table also shows is that Newcastle are under no fiscal pressure to sell. If any player wants to leave we may have no choice. We will not be selling to balance the books it will be because it is the right deal for the club. We’re in a position of strength, being able to afford to increase salaries if necessary and demand large fees if a player’s head is turned.

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  • catchy in norway

    May 8, 2012 at 1:05 PM

    Comment #12

    ibiza

    why not, ? i think it would be good, yeh sure it would be tough, but who ever won would deserve it,

    i just think its hard for any team to compete when its normally the same top 6, there rich clubs anyway, and they get all the europe money every year,

    top 6 would be battleing it out, then 7/8/9 would have something to go for knowing that they wouldnt be playing any of the top 6 with a chance for them to get into it

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  • Wor Shearer

    May 8, 2012 at 1:07 PM

    Comment #13

    @aussietoonfan

    True, it’s all been a bit of a disaster really. Now, were we talking about Liverpool or Blackburn?

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  • aussietoonfan

    May 8, 2012 at 1:08 PM

    Comment #14

    I knew you were there somewhere lurking under your rock.
    Did you bring your other pals with you or are they “grounded”.

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  • CODARM (The poster formely known as Ibizatoon)

    May 8, 2012 at 1:09 PM

    Comment #15

    Catchy…I suppose it’s swings and roundabouts, as we’d be playing the same games over the course of the season, however, you’d have to time your form perfectly, as a dip at the end would be a nightmare.

    I’m hoping they will enforce (or are able to) the financial fair play rules, as this will, to some extent, balance out the playing field. I think we’ve shown this year that buying smartly and running your club efficiently can enable you to push for a top 6 place.

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  • Wor Shearer

    May 8, 2012 at 1:10 PM

    Comment #16

    what?

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  • CODARM (The poster formely known as Ibizatoon)

    May 8, 2012 at 1:11 PM

    Comment #17

    Aussie…who was that aimed at?

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  • alec6247toon

    May 8, 2012 at 1:15 PM

    Comment #18

    Its great that we are probably in the best financial shape in the entire league, potentially even better than Arsenal. I wonder what their wage/turnover ratio is? Probably higher than 38%.

    With regards to the future, we are in a position now to strengthen and consistently push for Europa League for the next few seasons. Once we have established ourselves there, and we are making a profit with the naming rights to the stadium having been sold, selling some of the fringe players in the next few years etc. then we will be in a position to strengthen again, and get those 2 or 3 signings to enable us to challenge consistently for Champions League football.

    I don’t think we should get ahead of ourselves too much, what we have achieved this season has ben phenomenal and I will be hoping as much as everyone else that we beat Everton on sunday, and Fulham and Bayern Munich can do us a favour, but I have to also think, how likely is it that we can replicate this next season. I’m not saying it’s impossible, but I think next season the ambition will be get into the Europa League again, make sure we stay top 6 for a few seasons and then push on.

    Mike Ashley has been very canny with his business so far, and he will probably look at it as a nice additional amount of income which he didn’t expect, but it’s still not going to change the long term plan he has for the club, and I can’t see him spending more than £10-12million on one player for another few years, when we are ready to challenge for top 4.

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  • aussietoonfan

    May 8, 2012 at 1:16 PM

    Comment #19

    @Wor Shearer

    Don’t get me started about that Judas fiasco. What was it? 35 million and he goes to Liverpuke and scores what? 6 goals. FOR THEM!!!!

    And what did WE spend our cash on?

    Yeah that’s right 2 Senegalese players who only scored what 29 odd goals?
    It makes me sick!

    Thanks Mike! Terrible business!

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  • aussietoonfan

    May 8, 2012 at 1:19 PM

    Comment #20

    Sorry for any confusion, but that was for all those “true supporters”. Everyone who posts regularly knows who they are, but I suspect they won’t see it themselves.

    I was just trying the other side to see what they get out of it.

    Still can’t get what they enjoy!

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  • CODARM (The poster formely known as Ibizatoon)

    May 8, 2012 at 1:21 PM

    Comment #21

    I got your sarcasm…hope mine came across too 🙂

    By the way, those “true supporters” also go by the name mackems!

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  • stuart no9

    May 8, 2012 at 1:22 PM

    Comment #22

    aussie—- giz a clue!

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  • Tsunki

    May 8, 2012 at 1:28 PM

    Comment #23

    I blame Optimism Valley. Hooligans 🙂

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  • gorgonzola ( former Pecorino former to gorgonzola)

    May 8, 2012 at 1:29 PM

    Comment #24

    lads Lads 🙂

    Have a look at the poor scouser :))))

    http://sportski.net.hr/nogomet/lige-petice/navijac-liverpoola-dobio-slom-zivaca

    scroll down to the vi

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  • aussietoonfan

    May 8, 2012 at 1:30 PM

    Comment #25

    stuart…stuart…..stuart. my dear lad.

    “Everyone who posts regularly knows who they are”

    you like me read this blog every single day. and you need a clue.

    Really? I mean REALLY????

    REALLY?????????????

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  • chris_g

    May 8, 2012 at 1:31 PM

    Comment #26

    aussietoonfan – haha, yeah, I couldn’t agree more.

    But apart from the reduced debt and the sound financial structure and the quality scouting system and the improvements to the squad and the employment of a manager who has got us into Europe……..

    what has Mike Ashley ever done for us?
    http://www.youtube.com/watch?v=Qc7HmhrgTuQ

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  • LEROI

    May 8, 2012 at 1:31 PM

    Comment #27

    Now weve got the books sorted lets recruit some good players. we neeb 1 cb that looks like Douglas to me, then we need a cm to replace guthrie looks like we got amalfitano already and now there broad speculation that nile ranger and leon best will be sold we can afford to purchase either jay rodrigues or Jordan Rhodes.

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  • CODARM (The poster formely known as Ibizatoon)

    May 8, 2012 at 1:33 PM

    Comment #28

    Tsunki…Would seem the best place to lay the blame…destructive bunch them optimists 🙂

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  • gorgonzola ( former Pecorino former to gorgonzola)

    May 8, 2012 at 1:36 PM

    Comment #29

    What is this Mike Ashley talk..

    He indeed deserves a load of credit and has proved critics and fans alike wrong…. So far we are one of the best run clubs in europe if you ask me….

    That does not mean we are up for a champioship though but long term its healthy…

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  • CODARM (The poster formely known as Ibizatoon)

    May 8, 2012 at 1:36 PM

    Comment #30

    Gorgonzola… seems like a pleasant lad. Obviously likes the ref’s decision

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  • Beattie25

    May 8, 2012 at 1:38 PM

    Comment #31

    Well what a season it has been. So many thrills and spills, so many ups and downs, but finally we have the one thing we have all craved for years… hope.

    I will remember this season as fondly as any I have witnessed as it has given us all pride, belief and so many moments of utter brilliance that it has to be one of the best seasons ever despite where it is we eventually finish.

    I know there is 1 game left but I’d thought I’d take this moment to thank you guys for being a part of the many memories I’ll take from the past year. It was good to witness it all as an individual supporting nufc but to share the moments with people whom have similar pasion has made it a little bit more special!

    Anyway I think we should do an end of season award ceremony for the blog. I know it won’t take off but it’d be fun to hear your thoughts on the following awards I’m giving out.

    Most Intelligent Blogger – ‘Niafron’ – The man from France with an almost encyclopaedic knowledge of all the players we are linked with from over the channel and has better English thanany on here despite French being his first language!

    Least Intelligent Blogger – ‘Plan B, Eric, Billy, Bob, Ted etc…’ – love how he can call people unintelligent and continue to spell so poorly.

    Most Interesting Posts – ‘WWJBD’ – I don’t agree much with what he says but he has very interesting things to say.

    Least Interesting Posts – ‘Indian Mag’ – “First”, need I say more?!

    Optimist Of The Year – ‘Ibizatoon’ – Founding member of OV and continues to provide welcome relief to the doom mongering.

    Pessimist Of The Year – ‘Jimmymagpie’ – Oldest supporter but like a typical old man always has a gripe!

    Worst Wind Up Mercahnt – ‘JimmyXavi’ – He brought out my darkside.

    Where Are They Now? – ‘Ruddy, JFA & LewSpi’ – Please come back!

    Moment Of The Season – Cisse chooses us over the Mackems and the blog goes into meltdown with hundreds often getting stiffies at once.

    Lifetime Award For Services To NUFC Fans – ‘Dr. Ed Harrison’ Thanks to Ed for all his hard work, commitment and undoubted passion. He is the man that gives us the forum to express our views and without him we are nothing.

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  • gorgonzola ( former Pecorino former to gorgonzola)

    May 8, 2012 at 1:38 PM

    Comment #32

    CODARM

    I am still laughing reminds me of that Gunners fan when they drew against us 🙂

    HAHAHAHHAAH this fool is hilarious ….

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  • aussietoonfan

    May 8, 2012 at 1:39 PM

    Comment #33

    On a slight tangent, my long service comes up next year, and I’ll probably get the unfortunate chance to get over there somehow and watch this team play live in the flesh for the first time ever.
    Knowing my luck I’ll probably have to watch the Magpies take apart the Mackems at St. Jam………almost slipped up there. OH THE HELL WITH IT!!!!!!

    ST. JAMES PARK.

    Or I could even be forced to cheer on while we win the Europa title if not the Champion’s League.

    I’m already dreading the thought of going to the travel agent now.

    BRRRRRRRRRRRRRR!!!!!!!!!!!!!!!

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  • LEROI

    May 8, 2012 at 1:49 PM

    Comment #34

    oh yeah if simmo goes we want no less than 5m and we could either play steve taylor as rb or see if tavernier has what it takes whilst giving douglas a chance at cb.

    0
  • LEROI

    May 8, 2012 at 1:51 PM

    Comment #35

    is the window open as soon as the season finishes or is there a set date?

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  • Beattie25

    May 8, 2012 at 1:54 PM

    Comment #36

    New award to add to the list:

    Raving Loony – ‘Aussietoonfan’ – Mental. Like the Hulk smasssshhhhh

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  • toonincheek

    May 8, 2012 at 1:54 PM

    Comment #37

    I see the summer transfer window continuing the same policy we have adopted to get us where we are.
    Let’s remember the MA plan – buy (mostly) young and cheap, develop and (often) sell on as part of the financial wellbeing of the Club.

    Remember – we still owe MA a tidy sum by way of his interest free loan.

    Again, all credit to mainly Pardew/Carver and Carr plus all the other backroom boys, right down to the cook tea lady.

    I’m not an Ashley knocker, but if getting a successful team was as simple as imposing srict financial restrictions on transfer fees and wages, success would be an easy matter.

    I do credit MA with many things, but I still think there was a large element of luck in appointingPardew and Carr.
    They have been the real secret of our success.

    And Yes, I know, MA appointed them, and we would have blamed him if they had been bad appointments.

    Still say he got lucky.

    And so did we.

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  • aussietoonfan

    May 8, 2012 at 1:54 PM

    Comment #38

    O.K. enough of this malarkey….
    It’s past my bedtime here and I’m up early tomorrow.
    Catch you all here again.

    HOWAY THE LADS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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  • CODARM (The poster formely known as Ibizatoon)

    May 8, 2012 at 1:59 PM

    Comment #39

    Beattie…Definitely agree about Niafron and of course Ed.

    Thanks for the mention, although I don’t think OV was my push, it was for sure a group effort.

    Also, pretty sure I’ve seen JFA and LewSpi recently, although not as much as before. As for Ruddy, I still cry myself to sleep at his absence 🙁

    You’re absolutely right about this season. Certainly a memorable one. For me, the 3 most stand out seasons are:

    95 – 96 – What a team and so close to winning the league.
    09-10 – Championship season – All thought it was the beginning of the end, but Hoots did a great job and started re-building the pride of this great club in spectacular fashion.
    11-12 – Don’t need to say anything. It’s been the return of the toon army and long may it last

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  • CODARM (The poster formely known as Ibizatoon)

    May 8, 2012 at 2:01 PM

    Comment #40

    Beattie…if we’re doing an award vote…may I add you to a new category?

    Biggest turn around in a blogger award!

    “Who is this beatle you speak of?” That week really had me in stitches

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