With the results of the profits for the Premier League the last financial year announced by Deloitte yesterday – it does seem like Premier League clubs are knuckling down and trying to at least break even financially – which is why the Financial Fair Play (FFP) rules put in place some years ago by UEFA President Michel Platini – to do exactly that.
Lee Charnley and Mike Ashley
We’ll pay only this amount for any player
The bottom line of the Financial Fair Play rules is to have clubs at least break even, so they don’t lose massive amounts of money such as clubs like Manchester City, Liverpool, QPR and many other PL clubs have over the last five years or so.
Newcastle have done well both on the revenue side and on the profit side, and we could well be the most profitable PL club for the last financial year – and that shows Mike Ashley strengths – he certainly knows how to manage the finances.
Hopefully the Newcastle owner will now shift gear – and give us a good team by spending much more money on the squad – starting with big money being spent this summer.
Adam Bull is a Senior Consultant in the Deloitte Sport Business Group, and this is what he had to say about the impact of the Financial Fair Play rules:
“The introduction of cost control regulations at both a European and domestic level has caused many clubs to watch their spending more closely than ever before and created a useful tool for clubs to reduce the inflationary pressures during negotiations with players and agents.”
“Also, the current broadcast deal has given Premier League clubs such a large revenue advantage over the vast majority of European clubs that they can still attract the top playing talent without overstretching themselves financially.”
Of course the FFP favor the bigger clubs because they will have higher revenues than the smaller clubs – which means they can spend more money on transfer fees and wages and therefore are better positioned to get the best players.
However, clubs like Atletico Madrid and Southampton have shown in the last few years they can compete with the bigger clubs, even though they have much smaller revenues.
Look what Diego Simeone has done for Atletico Madrid since signing on for them in December of 2011, and Ronald Koeman and previously Mauricio Pochettino have done for the Saints – Southampton have shown thya can compete for a top four place in the PL.
Newcastle also showed that three years ago, and the club should stop telling us we can no longer compete with the top clubs in England – because that’s simply not true.
In truth there is not much to choose between the top sides and the bottom sides in England’s top league, and we saw that in action a week or so ago when Burnley beat Chelsea 1-0 and deserved to win.
The result was good for football and good for the fans – and shows to some extent that money isn’t everything in football.
Newcastle are at a crossroads right now, and have the opportunity to bring in a top coach this summer who can inspire our players, and a coach like that is worth an awful lot to any football club, and we hope we get one of those coaches in over the summer.
We should be able to pay a top coach big money to attract him to our club – so everything’s in place.
Newcastle just need to appoint a top coach now and the future may even be bright – as difficult as that may be to grasp by the large majority of Newcastle fans, after all that’s happened.
Howay The Lads!!
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