This Is Why Relegation Would Be Catastrophic To Newcastle


Newcastle United made the top 20 list of the world’s richest football clubs for the first time in three years last season, and we had reported revenues of £93.3M – ending on June 30th – but that is still below the revenues Newcastle were making when Bobby Robson was manager and Freddy Shepherd was running the club, when revenues were around £100M – and that’s over ten years ago.

freddy-shepherd-14.jpg

Freddy Shepherd – higher revenues when Freddy ran the club
Although we also had over £100M in debt which Ashley inherited


And when you take a closer look at the Deloitte report there are some revelations on the finances – and one is that Newcastle’s income from commercial side of the business is very poor, and the Deloitte Football Money league report showed 59% of Newcastle’s total revenue came from broadcasting, while 26% came from match day sales and a meager 15% from commercial opportunities.

Gerald Krasner was once Chairman of Leeds United, and is now a partner in a Management Consultancy firm in Newcastle, and he is quoted in the Evening Chronicle today:

“If Newcastle dropped out of the Premier League, it would be a catastrophe for them financially.” “I don’t think it will happen this season though.” “Fans do matter, but not as much as they think.”

“They create the atmosphere for broadcasting.” “I’m sure the club is maximizing the potential for match day and commercial revenue.” “If you get the performance on the field right, then the rest follows.”

We’ve always thought if a side is successful on the field, then the finances tend to follow the success and increase – as Gerald points out.

But with almost 60% of revues coming from the broadcasting of Newcastle’s games, a relegation would be a complete and utter catastrophe for Newcastle – which is why we’ve seen owner Mike Ashley get involved personally and brought in five good players into the club this month – so far.

The task Mike Ashley has ahead is to raise the commercial income of the club, and we suppose the deal with Wonga – for the shirt sponsor deal – said to be worth £24M over the next four years will help – but that’s still chicken-feed compared with what top English clubs make on their shirt deals.

For example Nike pays Manchester United around 23.3M per year on their long-term shirt deal with the club, which is over four times what Newcastle are getting from Wonga – and that’s just one example.

However, it’s also the best deal Newcastle have got on any shirt deal – according to managing Director Derek LLambias.

In order to return to making big money again – the number one goal has to be that Newcastle have a good (great) team – that competes in the Premier League top six every season – including next season, and battles for a place in Europe.

That was the goal at the beginning of this season, and for a number of reasons we have failed miserably so far, but with five good players now into the club this month – the future at least looks a little brighter than it did at the end of last year.

Hope springs eternal for Newcastle.

Howay The Lads!!

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156 comments so far

  • Magickit

    Jan 28, 2013 at 11:50 AM

    Comment #1

    Sometimes its easy to choose players

    Juz have a closed match

    Team 1
    ___________Krul
    Debuchy+Mbiwa+Colo+Santon
    ______Tiote+Sissoko
    ____HBA+Cabaye+Marva
    __________Cisse

    Team 2
    __________Harper
    Simpson+Willo+Perch+Taylor
    Obertan+Gosling+Amifatino+Sammy
    +++++++Ameobi+Ranger

    Play a full match and look at the score

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  • Big Pappa Cissé

    Jan 28, 2013 at 11:51 AM

    Comment #2

    I really hope the R word does not happen again as this is the best crop of players we have had in a long time and next season, provided we keep hold of everyone then anything is possible.

    0
  • Iain Dowie

    Jan 28, 2013 at 11:51 AM

    Comment #3

    Jayphoto

    i agree with what you’re saying but gosling is yet to play back to back games for us in the last 3 years. regarding shola, is playing 10 minutes at the end of game justifying the money we’re paying him week in week out. We need to replace him with a young striker who can develop and offer more in the last 10 minutes than someone who might score 3 goals a season. Amalfitano will have to start showing what he can do soon because he isn’t exactly a young player anymore. Sammy Ameobi could still become a good player however he needs to improve massively on his decision making ,again when iv’e seen him he hasn’t impressed me.

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  • Charlie in the Gallowgate

    Jan 28, 2013 at 11:53 AM

    Comment #4

    If Sissoko is a character and Mbiwa is a leader then great because at the minute we are sadly lacking both at the moment

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  • TheToonKing

    Jan 28, 2013 at 11:54 AM

    Comment #5

    I don’t know about Gouffran. Feels like he was a little knee-jerk after we failed on Remy.

    I’ve never seen Gouffran play on the wing, he’s a striker, he mostly played alone up top.

    Also, he is not that fast. He’s fairly pacy yes, but far from Walcott, Lennon etc. He’s probably around HBA fast.

    I’m hoping he proves me wrong, but at the moment he’s the only one I have some doubts about. The rest are brilliant signings.

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  • sirtoongospel

    Jan 28, 2013 at 11:56 AM

    Comment #6

    We deserve a team that can compete with the top 20 in Europe. Here’s hoping eh!?

    But first things first, we need 5 wins and one tomorrow night will leave us needing 4 wins from 14. Tomorrow is huge

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  • croftus5678

    Jan 28, 2013 at 12:01 PM

    Comment #7
  • sirtoongospel

    Jan 28, 2013 at 12:01 PM

    Comment #8

    Magickit, fair point but Anita and Saylor are missing from both teams.

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  • daztoon

    Jan 28, 2013 at 12:02 PM

    Comment #9

    @charlie
    We defininatly need a vocal leader out on the pitch.Colo has never been captain material for me.

    Lets hope Ashley has seen the light and relised our great club has underachieved for years and wants to build a squad worthy of its support

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  • croftus5678

    Jan 28, 2013 at 12:06 PM

    Comment #10

    i’m thinking the senile fergie did us a favour in calling our team as it seems to have pee’s ashley/pards ect off now for manure to lose every game from now on and the unwashed and qpr to get relegated and we make it into mid table and i’ll be happy.

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  • JackButler

    Jan 28, 2013 at 12:08 PM

    Comment #11

    Before this spending spree by Ashley I was seriously worried that we would be dragged into a relegation battle, but now with the amount of quality we’ve brought in I think we can start to pull away from the bottom, but Pardew had to now realise that all eye’s are on him as he no longer has any excuses and must deliver results starting tomorrow at Villa

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  • nightfa11

    Jan 28, 2013 at 12:10 PM

    Comment #12

    we have too many players now..we need 25.. so i suggest next season will be: (i think colo will stay..he spent to much time here & then not witness nufc at its full potential)

    krul
    debuchy colo, mbiwa, santon
    sissoko cabaye anita
    hba cisse pea (hopefully..i think we might sign him before window closes)

    2.lineup
    butler
    raylor (i think hell stay) taylor, mirin, heidara
    tiote, bigi, marveuax
    thaivun carroll goufrann

    youngers:
    good
    vuckic
    cambpell

    so others can leave (off our wage bill=))
    harper, wili, parch, jonas, gosling, abeid, amalfitano, shola 1, ranger, xisco, obertan! derek will want to balance their book, & we simply have too many players now..many will leave..i just hope cabaye will stay…im sure man utd will be after him, cos scholes will retire & then all they have is carrick (almost 32), anderson & cleverly..

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  • Blaydon-Toon

    Jan 28, 2013 at 12:11 PM

    Comment #13

    Stop the service to Benteke ie keep the ball and press them outwide and we will win the game …. Hopefully they will be so tired chasing shadows we can get a comfortable win … Although Villa are desperate to get a result too so will be a tough game ! Hope we don’t go 1-0 down as heads may drop as they have done in the past ! Go 1-0 up control the game and in the last 20 mins score a few more 🙂

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  • daztoon

    Jan 28, 2013 at 12:15 PM

    Comment #14

    Jack
    All eyes on Pardew now had enough talent to start with now it’s up to him to prove many people wrong me included that he is good enough to manage them

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  • sirtoongospel

    Jan 28, 2013 at 12:16 PM

    Comment #15

    I think next year we will see Inman slowly introduced into the squad. Bradden has all the tools to be a cracking player, and is the best of our youngsters as he is the most advanced. Campbell is probably 13 months behind him but both will go on to be very good.

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  • Transfer Sage

    Jan 28, 2013 at 12:21 PM

    Comment #16

    I’d put campbell ahead of inman…dont think he will make it at the club.

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  • robin

    Jan 28, 2013 at 12:21 PM

    Comment #17

    This is the reason i believe we will sign another Striker before the Transfer window closes on Thursday. The Strikers mentioned, Bony,Aubameyang and Van Winkel are a smokescreen to distract attention away from NUFCs main target Andy Carroll whom Pardew has been chasing ever since Liverpool decided to cut their losses on the former Toon hitman. It seems quite plausible that he will be signed in this window!

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  • croftus5678

    Jan 28, 2013 at 12:21 PM

    Comment #18

    @15

    i agree but it will be hard for him to get any were near the team now (hopefully he can get some cup games)
    cambell is so determined to succeed and tries so hard i really want him to be a success and maybe thats one good thing that can come out of us being short on strikers atm that he may get some game time at some point.

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  • JackButler

    Jan 28, 2013 at 12:22 PM

    Comment #19

    daztoon

    I agree mate, but with a horrendous injury list for most of the season he’s always had something to hide behind. I honestly think that he’ll be gone come the summer barring a spectacular turn around between now and May

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  • Transfer Sage

    Jan 28, 2013 at 12:24 PM

    Comment #20

    robin

    he is currently on loan at west ham…what makes you so confident he will sign now?

    0
  • croftus5678

    Jan 28, 2013 at 12:25 PM

    Comment #21

    @17

    i know he’s a geordie lad and a good striker and played his heart out for us but i really think our team has a lot better quality of players in it than carroll now even the lads we have been linked with are a hell of a lot better and would cost not even half of what caroll would cost.

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  • JackButler

    Jan 28, 2013 at 12:25 PM

    Comment #22

    Don’t want Carroll back, spend the majority of his time on the treatment table and we already have enough lads there. We need a Bellamy type striker (without the shyte attitude) someone with real pace and desire

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  • Transfer Sage

    Jan 28, 2013 at 12:26 PM

    Comment #23

    jack

    couldn’t agree more. I have nothing against carroll but I think that he is never fit and when he is fit his goals return has been poor for the past 2 years.

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  • boater

    Jan 28, 2013 at 12:27 PM

    Comment #24

    The buzz surrounding new signings was welcome and should give us a boost at K.O tomorrow. Whether or not we have dealt with the lack of match winning resilience in the team or fully arrested the losing-momentum is another matter.

    The form of Cisse remains a massive issue – despite what the ostriches and their bloody 4-3-3 miracle teamsheets have to say on the matter. I would ‘rest’ Santon as Pardew suggested – i.e. rest leaking goals down the left channel because Santon cut inside on his right, lost the ball and shrugged his shoulders.

    0
  • John Tudor

    Jan 28, 2013 at 12:29 PM

    Comment #25

    ross mccormack anyone

    0
  • Transfer Sage

    Jan 28, 2013 at 12:30 PM

    Comment #26

    boater

    I think cisse is struggling. Reading game he was denied by some brilliant goalkeeping but at the same time he should have taken at least 1 of those.

    Hopefully with cabaye back to fitness to feed him chances as well as marvoux we have a good chance to get him scoring again.

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  • sirtoongospel

    Jan 28, 2013 at 12:31 PM

    Comment #27

    Campbell is not ahead of Inman. The club have a route to the first team in place and a loan move is a key part of that. Only our serious injury list has seen Campbell on the squad a few times. He has immense promise and ability but those that watch reserve games regularly will know that he still has developing to do.

    With 12 months of the right development, ( a relegation fight isn’t it) then you will have a player more ready for the first team. But from a physical perspective, Inman is more ready.

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  • toonfield

    Jan 28, 2013 at 12:32 PM

    Comment #28

    IMO the reason the shirt deal was only 24mil over 4 years and not 24 mil per season as per Manu, is because of the negative press lambiarse and Ashley have gained with their poor decision making and lack of communication to the fans.
    If Ashley keeps up his involvement in transfer dealings, gives big bad Derek a back seat or gives him the push altogether, wins the fans around (which he seems to be doing over the last couple of weeks) and gains a much better relationship with the fans, then I think the big money offers will roll in regarding the commercial side and shirt sponsorship etc as big firms want to be associated with clubs that have a good harmony and happy fans, not a club where the majority of fans hate the board,
    So keep up the good work Ashley and hopefully we’ll all have a great club we can be proud of

    0
  • BelfastMagpie

    Jan 28, 2013 at 12:32 PM

    Comment #29

    Very good transfer window so far, but I’m not fully blinded by these other signings, We still haven’t replaced Demba Ba. Not replacing Ba could prove very costly.

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  • Joe Blog

    Jan 28, 2013 at 12:34 PM

    Comment #30

    If like me you have a propensity for the occasional flutter, 9/1 with Ladbrokes for a top 10 finish. 7 points adrift at the moment – good value, in my opinion.

    0
  • croftus5678

    Jan 28, 2013 at 12:34 PM

    Comment #31

    one site has said all 4 of the new signings are in line for a start tomoz 🙂
    theres a slight concern about cabaye after he asked to come off last week though but he’s expected to be fit !
    i say if any uncertanty leave cabaye off and play marv sissoko and look at bringing cabaye on as sub at some point.

    0
  • martoon

    Jan 28, 2013 at 12:35 PM

    Comment #32

    No matter what the team is I think a good tactic against Villa would be to play a fast game and try and tire them out because they have played 2 cup games (and lost) since we last played. I think this match could shape the rest of our season.

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  • Transfer Sage

    Jan 28, 2013 at 12:35 PM

    Comment #33

    sirtoon

    campbell is more than ready to get sub appearances…he looks a class above in the reserves….he is far ahead of players like nile ranger for one.

    I think that as his game is all about pace the lack of strength and size isn’t an issue, much the way it was for owen at that age.

    I think inman will never been a toon player…he is a decent player and a good lad but just not good enough….he is 21 and on loan at crewe, at that age he should be in the championship and playing week in week out at least.

    Campbell should have been on loan this year somewhere in the championship…..players are wasted laying reserve games. The quality is just too poor to really test them.

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  • alf

    Jan 28, 2013 at 12:36 PM

    Comment #34

    Carroll, would’nt be signed for his goals, but for his ability to hold the ball up and bring players into play, you all seen how effective it was against Liverpool yesterday! And with the high energy midfield of Sissoko, Cabaye, i think there could be alot of mileage in bringing Carroll back to the club. Good call Robin!

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  • daztoon

    Jan 28, 2013 at 12:37 PM

    Comment #35

    Jack
    It’s no so much his strange starting line ups it’s the rabbit in the headlights look he has on the sidelines if things aren’t going well,
    Nothing less than a draw at Villa will be good enough as he has had good week to work on formations,tactics etc to work on and Villa have played two games

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  • BelfastMagpie

    Jan 28, 2013 at 12:37 PM

    Comment #36

    If we cant get anything at Villa, we really are screwed. They’re rubbish.

    0
  • boater

    Jan 28, 2013 at 12:37 PM

    Comment #37

    Transfer Sage – To be honest even during his hot streak he was missing sitters last season. I just can’t see him ever being the finisher we rely on – let alone build the team around. Looking forward to seeing Gouffran though.

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  • JackButler

    Jan 28, 2013 at 12:37 PM

    Comment #38

    Cisse will come good, we have created very little for the lad of late and I think that Pardew hasn’t help by playing him out wide. With Cabaye back playing and HBA returning soon enough plus with Gouffran and Sissoko adding some much needed quality to our midfield Cisse will soon be banging them in again

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  • Markaccus

    Jan 28, 2013 at 12:37 PM

    Comment #39

    @boater, I prefer a 4231 to a 433, just wondering if that would make me a different type of flightless bird from an ostrich? Bit of a random rant at people who have expressed their opinion on which formation the toon should play. Seems designed to get a negative, confrontational reaction? Bad mood today, maybe?

    0
  • Transfer Sage

    Jan 28, 2013 at 12:37 PM

    Comment #40

    What I want to know is how have sunderland been sponsored 20mil a season by invest in africa.

    0

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