The more we think about how much money Newcastle will be getting this season, the more we realize why smaller clubs like Swansea, West Ham, Southampton, Norwich and Fulham were spending big money in the transfer market during the summer – but alas not Newcastle.
Mike Ashley – should plough the profits back onto the club
Newcastle should be able to make a decent profit from now on financially, and one reason for that is the Wonga deal, which is giving the club £6M a year over the next four years, and according to Derek LLambias, is the biggest shirt deal the club has ever made.
The second reason, and this is the big one, and it’s with the new three year massive TV deal, the club will get between £60M and £100M every May from the Premier League, and that’s based on criteria such as where the team finishes in the league, how many times the team were on live TV and the like.
That’s an average amount of around £80M.
Last season the Premier League clubs got between £40M and £60 M, an average of £50M, depending on the various measurements above, and that’s an average of around £50M.
So Newcastle should be getting an average of £30M more in revenue next May from the Premier League, and since it’s the best deal we have ever had from Wonga, we should be making quite a bit from the shirts deal too.
It’s makes a mockery of Newcastle pinching pennies in this season’s transfer window.
The last financial results we had Newcastle made a small profit on revenues of around £93.3M, so you would expect Newcastle to be making decent profits from now on – and maybe as much as £30M or more is not unreasonable, given our already solid financial position.
Newcastle only spent a net of about £12.5M this year, so all we ask of owner Mike Ashley is that he puts the club’s profits right back into the club, for improvements in things such as facilities and the scouting network, but most of all, make most of it available as transfer funds for Joe Kinnear and Alan Pardew.
If the owner will pledge to do that we can do very well in the transfer market – the Newcastle owner just has to be willing to spend the profits of the club – which Derek LLambias said a number of times was always the plan.
We need somebody at the club to tell the fans that this will be done over the coming seasons – and then we should be in good shape – maybe very good shape – and who knows we could even become successful again.
Whoops – getting carried away again.
What do you think?
Follow us on Twitter, like us on Facebook and +1 us on Google+:
You can also reach Ed at firstname.lastname@example.org