It’s been well publicized that over the next three years Premier League sides will get between £60M and £100M at the end of each season from the Premier League, and the amount depends on where clubs finish in the league, how many times they appear live on TV, and some other factors.
Alan Pardew – £60M war chest available in summer?
Newcastle are currently in 8th position in the league – so if we finish in that position at the end of the season, we could get around £86M in May.
And if we are unable to spend any of the £20M today that we received for Yohan Cabaye – this is the last day of this January transfer window – that money will also be available in the summer.
And if we take a quick high level look at Newcastle’s finances and assume we have to break even very year at least, then last May we received only £40M from the Premier League – when we finished in 16th position.
So that would suggest that at least £46M of the £86M would be available to spend, and we would still break even financially.
So at a high level, it seems to us that Newcastle could spend £66M in the summer and still break even.
In part that’s because of the huge increases being given to Premier League clubs over the next three years, and of course it also includes the £20M we got for Yohan Cabaye this week.
£20M – but we have weakened the side for the rest of the season.
And Alan Pardew is showing just glimpses of frustration when he said yesterday that he would have to rebuild the side again – with Cabaye gone and others – like Loic Remy, Shola Ameobi, and possibly Papiss Cisse – leaving in the summer.
But of course Newcastle have to want to build a top side first of all – and then second – they have to be willing to allocate big funds to do that.
But from our cursory look at Newcastle’s finances – big money would be available to the club in the summer – and we’d still be able to at least break even.
Now it depends – as always – on what owner Mike Ashley wants to do.
Follow us on Twitter, like us on Facebook and +1 on us on Google+