News today in the Danny Simpson drawn out saga, that Alan Pardew will meet with him at the end of the season to try to persuade him to sign a new deal at Newcastle.
Danny Simpson – in action against West Brom
Pardew would love for Danny to stay on Tyneside, although that doesn’t necessarily mean he would be a starter next season, but the contract negotiations began with Simpson last summer, and there is still no agreement.
Newcastle are said to have offered Danny a five year deal, and the local papers have suggested it’s not the amount Danny doesn’t like, but the way in which the money is being paid.
And we think what that means is the division of money between image rights income and ordinary salary.
In fact we had a good potential explanation of what could be happening with Danny from one of our readers, Richard Alderson, a few weeks back.
This is what Richard said in his email:
In England currently the government and HMRC are clamping down on tax avoidance in sport. May clubs paid players in the form of image rights as well as a salary. So the money Simpson was being paid might have been split evenly between salary and image rights.
As the tax law stood he would pay 50% tax on his income above £100K a year but in the form of image rights the tax was only around 20%. As this is being cut out, there was an article somewhere a couple months ago stating that NUFC had met with HMRC and were cutting the image rights payments out from now on.
The clamp down on image rights payments is why Glasgow Rangers owe so much in unpaid tax to HMRC. Therefore I presume Simpson will want to be either paid in image rights, which we wont do as it is not allowed anymore, or he will want a pay increase to make up for the loss of tax.
That’s seems a good explanation of what could be happening with Danny’s contract, but Alan Pardew will want an answer from him very quickly, because if he doesn’t sign he will be moved out and Alan will bring in a top right back – somebody like Mathieu Debuchy of Lille, who is a good friend of Newcastle midfielder Yohan Cabaye.
Danny has played his last game for Newcastle, at least for this season, and he will not be in the squad for the important game at Goodison Park next Sunday afternoon.
What do you think about all this?