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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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No Relegation Clauses In Players’ Contracts – Say It Aint So

11:58 pm, Wednesday, May 1st, 2013 by Dr. Ed Harrison · 9 Comments

It is being reported in the Independent today that Newcastle’s five new players brought in during January cost the Newcastle club £31M in total, including agents’ fees and maybe that’s why Newcastle were able to bring five good players in during what is a difficult window.

derek llambias up close

Derek LLambias – why no relegation clauses?

The cost of those transfers had been widely reported at £18M,  but we’re surprised Mike Ashley paid out so much – and in a January transfer window too – but it may be that we will still go down, even  after Pardew’s squad was significantly improved in January.

But it is a poor reflection on both Alan Pardew and the players,  that we are now in the lowest position we have been in this season, 17th (4th bottom), and managed to make our goal difference worse by 9 goals in our last two home games – absolutely inexcusable.

But the really shocking news is that Newcastle did not include any relegation clauses in the contracts of the five players brought in, and therefore if we do get relegated, that will cause some additional financial pressures on Newcastle.

It will cause enough financial pressure in any case, because the report says Premier League clubs next season will receive £60M, (we had reported £70M), which is an increase of £14M over this season, and while we would get some parachute payments if we went down, the club will miss out on some big money.

Newcastle didn’t have any relegation clauses in the players’ contracts back in 2009, when we were last relegated, and Derek LLambias had said at the time the club would make sure in the future there would be relegation clauses put in.

They do have these clauses at other clubs such as Sunderland and Wigan.

If we do get relegated it will come as a terrible shock, which of course is what also happened four years ago,  when we were relegated for the first time, and right up until the last game most fans thought we could survive – but we didn’t – and it’s hard to say it, but the same thing could happen again this month.

Derek LLambias revealed that the current wage bill was £64.1M a month ago, and that was too high, and would be reduced in the summer, presumably by players like Danny Simpson, Steve Harper, Dan Gosling and others leaving the club.

That was based on having revenues of $93.3M and that will be reduced by about half if we are relegated, and while Mike Ashley could loan the club say £30M to see the wage bill is paid, we cannot imagine a number of our top players playing in England’s second division, when the World Cup is next summer in Brazil.

If we do get relegated, we had thought we’d be in much better shape financially than we were four years ago, and that could still be true, if we assume the existing players have clauses in their contracts in case of relegation.

But to us this is simply is yet another terrible thing that would happen if we are relegated – and it’s going to be shocking –  and will put the club back at least two years, and that assumes we could come straight back up.

The easy solution is not to get relegated, but the way our lads have played recently makes our best hope of staying up that Wigan don’t start winning games.

It’s a real disaster scenario, which has only become more real since we were knocked out of the Europe League three weeks ago, and we have one point in three games and our goal difference has dropped by -9,  and if I was Mike Ashley I would be sweating bullets. :(

Maybe he is.

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Tags: Coaching · Financials · Newcastle News · Premier League



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9 responses so far ↓

  • 1 AMEOBI // May 2, 2013 at 12:02 AM

    Hm I thought this would of been a good thing, maybe it would with the sales of the players?

  • 2 Newcastle Brown Alien // May 2, 2013 at 12:13 AM

    forgive me for being naive, but i dont really see there being much of a problem, Mike ashley has the money for these players, especially if we get money from sales of cabaye, tiote, benny and others which would generate high finance, and we would have a better team than first feared in the championship, i would be loving seeing socks and goofy in the ch’ship as they would develope into really good players and we should get promoted

  • 3 davis_toons // May 2, 2013 at 12:30 AM

    Not too many see us winning at Westham. They are too strong at home this season.

    Just that 1 game we got to win it. Though not easy. QPR. Got to win this team. Even though they fought ManUtd without fear and fought well.

    Their last game and they will like to see off well. Tough Luck for us this season.

    Pardew have run out of his luck

  • 4 obatoyou // May 2, 2013 at 12:51 AM

    Yeah I would have thought this would be a good thing too~
    A relegation release clause means they would all leave …
    Now we can get a good price for them?
    What other clause is ed on about?

  • 5 Sav // May 2, 2013 at 3:45 AM

    The price of Llambias’ hubris.

  • 6 winnynufc // May 2, 2013 at 9:26 AM

    Dont really see a problem here! If we go down we still hold all the cards as far as contracts go! Lets move on! HWTL.

  • 7 oldbobaycliffe // May 2, 2013 at 10:41 AM

    despite the trouble were in people still support ashley we are staring relegation in the face and if the worse happens we will be relegated for the second time in his ownership.the talk is about how financially well off we are so if he hasn,t put get out clauses then he,s not so clever.the fear of being another pompey has been held over us by our supporters forgetting that we have a huge support despite not winning a domestic title for over 50 years.

  • 8 Spotlight Kid // May 2, 2013 at 10:44 AM

    Don’t Panic! Don’t Panic!! No Relegation Clauses Clauses!!! Don’t Panic……..

    Sav@5 – you got it in one, Sir.

  • 9 ende // May 2, 2013 at 5:24 PM

    I don’t see the problem. If this crop of players thinks they can just walk away after relegation, screw em. They can rot in the championship.




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