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News and Commentary On Newcastle United Football Club By Ed Harrison, A Proud Exiled Geordie And Lifelong Fan

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Any Profits Ploughed Back Into Newcastle – Llambias

10:02 am, Friday, February 8th, 2013 by Dr. Ed Harrison · 15 Comments

Derek LLambias has given some exclusive interviews today to the Newcastle Journal, and he talks about some of the financial plans in place for the club – and that there has an effort to keep the wages to revenue (turnover) percentage at or below 60% – it was around 75% when we were relegated – and Newcastle are ploughing any profits the club makes – right back into the club.

mike ashley and Derek LLambias

Mike Ashley and Derek LLambias – Looks like we just conceded a goal

We’ve always thought that running Newcastle essentially as a non profit club – profits are ploughed back – is a big deal – but it’s received very little publicity.

And of course you wouldn’t believe the goal is to invest any profits back into the club, since some fans have accused Mike of actually taking money out of the club – big money out of the club – but that hasn’t happened.

The facts are that for a number of years now any profits are put right back into the club’s coffers – it’s just that we haven’t had any profits. :D

But in the last financial year we lost only £3.9M – so it wouldn’t be a surprise if Newcastle start generating profits from now on, especially with the new shirts deal from Wonga kicking in next season, and the increased revenues from the Premier League TV rights starting next season.

This is what Llambias said in the Journal today:

“We have always had a target with salary to turnover and we stay within that – that’s why you lose one or two deals occasionally. Once you break those fundamental rules it’s very difficult. Where do you stop? Where does that level of salary stop? Our wages are 64% of our turnover at the moment. That will go down because we will get more money in next year.” “The commercial deals will boost our income and the new Premier League TV money.”

“What we have done is take it up to our figure for next year now, so there will be a slight blip because we’ve brought in more players than we were anticipating. But next year we will be spot on.” “Of course, there are exceptions. If Lionel Messi suddenly said he wanted to live in the North East then we’d say absolutely!”

“But seriously, there’s a reality to it. It’s a question of us sticking to our guidelines – that’s where we are.” “ ‘This is our model, we’re going to do this and we’re going to stick to it’. “For us it’s about building. Stability is massive for this club – it has to have stability.” “We don’t take any money out of the club and whatever it generates goes back into the club.”

As we get more successful and get more money into the club, then we’ll have more money to spend on things like new players, and also maybe we’ll finally get that St. James’ Park expansion, so the capacity becomes just over 60,000 – and that will help generate higher match day revenues – so these things tend to build on themselves.

And we’re surprised some questions weren’t put to Llambias about the UEFA Financial Fair Play rules, with Newcastle seeming to be in very good shape, and a few months ago the Premier League clubs agreed to their own financial plans that will balance the book of Premier League clubs – so it would have been interesting to know some of the details of those plans – and what the time-frame is.

And only last week UEFA has warned clubs – including two English clubs though to be Chelsea and Manchester City (that’s a surprise) – to get their financial houses in order – with the goal to have balanced books in a couple of years.

But from what Derek LLambias has said yesterday and today – it looks like there will be some good times ahead for Newcastle – and who knows – we may actually win something shortly – for the first time since 1969.

Now there’s a thought. :D

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Tags: Contracts · Financial Fair Play · Financials · Newcastle News · Transfer News and Rumours



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15 responses so far ↓

  • 1 Transfer Sage // Feb 8, 2013 at 10:08 AM

    What’s sparked Llambias into life? He is saying some good words though.

  • 2 nick_9 // Feb 8, 2013 at 10:11 AM

    Other than wages and expenses eh Alan? I can see you in your chauffeur driven limousine with a furr coat and pump stick all paid for by the board.

  • 3 nick_9 // Feb 8, 2013 at 10:12 AM

    Pump stick? Sure that said pimp stick when I typed it

  • 4 Transfer Sage // Feb 8, 2013 at 10:12 AM

    nick9

    That’s a complete different thing you mention haha.

  • 5 Toon-Prodigy // Feb 8, 2013 at 10:13 AM

    Some good words being spoken.

    Lets just hope there is no repeat of the summer which left us thread bare and having to field development players.

    But I don’t think we will ever experience such a horrendous run again now that we have the quality in depth. Graham Carr said the same it was very unfortunate and it dosn’t really happen to that extreme in football.

    We do need to get the underbelly of the squad sorted out and im glad we are hearing talk about adding more strength to the squad. The jump from our first 11 to the reserves was staggering in regards to quality.

    Its good they have noticed this and are addressing it.

  • 6 wolfshead@toon // Feb 8, 2013 at 10:14 AM

    he pops up when hes got something to crow about he keeps his head down when things are going badly though i still think hes a chancer thats got lucky

  • 7 connor_nufc // Feb 8, 2013 at 10:14 AM

    * if we stay up

  • 8 toonarmydownsouth // Feb 8, 2013 at 10:18 AM

    Did our summer transfer kitty get spent on dekka going on a PR course? The man is speaking sense for once and has refrained from insulting anyone!

  • 9 nick_9 // Feb 8, 2013 at 10:19 AM

    I’m not a fan of llambias mainly because he looks smug a lot of the time when we’re having a tough time, similar to ranger who goads fans. However I’ve not given up on the little barsteward nor Ashley.

  • 10 JAMSHA // Feb 8, 2013 at 10:32 AM

    If Lionel
    Messi suddenly said he wanted to live in
    the North East then we’d say
    absolutely!”

    HMMM SOUNDS LIKE MESSI IS OUR SUMMER TARGET…. :-P

  • 11 Toon-Prodigy // Feb 8, 2013 at 10:33 AM

    I’v still got faith in these people and the model we have. Take out the last 6 months and without a doubt we have progressed as a club.

    What boils me is that we always have to make monumental mistakes before lessons are learnt. With a bit of strategic forward thinking this could of been easily avoided. You don’t gamble a season on not getting injuries. Thats ridiculous. Only right that karma bit us unfortunetly.

    Least where on the mend now though.

  • 12 firebug666 // Feb 8, 2013 at 10:34 AM

    Now that Pardieu has began telling us the truth, and Llambias has began to do interviews, does that mean that as fans we can expect the club to admit that they were telling us lies previously? Now that we have a more stabilized club, and are not in the market for anymore first team players in the summer, will our club be fighting relegation again next season? Maybe we just have to keep our heads afloat until January again before we bring in a much needed striker, and a really good left midfielder.

  • 13 geordiesteve520 // Feb 8, 2013 at 10:51 AM

    Reading between the lines – Ashley is copying Nick Leeson’s lead.

    On topic: I think that these last few days and weeks have gone a long way to showing the majority of fans that we do indeed have a long term strategy in place and that the board realise they show have been proactive in the summer and not reactive now – that said the moving up of targets from summer to January showed that perhaps they are learning from their mistakes and we can expect some strenghtening during the summer too.

    I think that the transparency of this week has helped a lot of fans to appreciate what is going on at the club and hope that it continues.

  • 14 Blaydon-Toon // Feb 8, 2013 at 11:01 AM

    Re post from last thread I’m always too slow :-) Morning lads … Transfer totally agree on Benteke as an alternative too AC ! His all round game is better but still has the same attributes size pace power good in the air younger probably cheaper sign him up in the summer !

  • 15 Troy Stavers // Feb 8, 2013 at 1:38 PM

    Totally missed this thread. Probably too late now. But in case someone wants to discuss it;

    It’s reassuring to hear Owlheed come out and show us what their plans are.

    It all looks promising and I’m willing to give the regime time to prove they mean what they say.

    I don’t trust politicians one bit and the regime have acted like the government on many fronts since they took over.

    However, they have done some good things and must be congratulated on the financial issues at the club.

    I only base opinion on past experience and they still have a long way to go before I trust what they say.

    Time will tell though, which at this moment has only got us investing to save us from relegation.

    The summer will be another huge time for the regime.

    Nothing should stop us going into next season with a squad that is capable of Europa qualification.




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