Newcastle Can Raise Their Wage Bill By £12M This Season

It’s not gone unnoticed that smaller clubs like Swansea City, Norwich City and West Ham this summer have paid out some big money in the transfer market, unlike Newcastle United.

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Mike Ashley – will he loosen the purse strings a bit?

And we think that’s because of the new three year deal the Premier League has cut for the TV rights to the games.

And whereas last season teams got between £40M and £60M, depending on where they finished in the league table and a few other measurements,  that figure is between £60M and £100M for the next three years.

In general, teams will be getting about £25M more for the coming season than last year.

Newcastle’s wage bill for the last financial year through June 30th last year,  was a bit high and it was £64.1M on revenues (turnover) of £93.3M, so that was 68.7% of revenues.

At the time the results were announced in March,  Derek LLambias said Newcastle would be reducing that wage percentage this summer, and we’ve already got Nile Ranger, Danny Simpson, Steve Harper and James Perch off the wage bill, and Dan Gosling will also likely leave this summer, and we’ve brought nobody through the door except 16 year-old Olivier Kemen.

Sending players like Shane Ferguson, James Tavernier and Mehdi Abeid out on loan also helps to reduce the wage bill, and presumably our revenues will be further boosted by the new Wonga deal which is 6M a year for the next four years – the biggest sponsor deal ever signed by the club  – and it still seems like peanuts compared to the big clubs in the Premier League.

If Newcastle are to keep wages at say 60% of revenues then it means the wage bill can increase about £12M for next season – and we’re not quite sure why Mike Ashley is continuing to be ultra frugal this summer.

Certainly smaller Premier League clubs than Newcastle aren’t.

We’re not saying we should go crazy, just loosen things up a bit for both the transfer fees and the wages of new players – because of our increased revenues coming in.

What do you think?

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