If we are relegated this season it would not only be a huge financial hit to the club which means we couldn’t use the extra money to strengthen our squad.
But it would also be another huge embarrassment for a club of the magnitude of Newcastle United – currently the 17th richest in the world – but of course nowhere near that as far as our squad goes – and that in a nutshell is the current problem.
Mike Ashley – thinks – are Newcastle going to lose all that revenue?
Here´s some idea of what we are talking about in terms of lost revenues for Newcastle is the club is relegated.
We will get some parachute payments from the Premier League but our revenues would sink from around £130M in this current financial year to around £50M next year – if we are relegated.
Those revenue next year if we stay in the Premier League are expected to rise by about £55M in the next financial year to around £180M.
The rise in revenues in the Premier League with the new deal next year is more than the total we would get in the Championship next year.
So if we take the drop clubs like Stoke, West Ham, Everton, West Brom, Crystal Palace, Swansea, Southampton, Leicester and others – clubs that currently have lower revenues than Newcastle would overtake us.
Here´s what we have done over the years under Ashley in revenues through the last financial year (end of June last year) and our revenues this year through the end of June are expected to again be around £130M for the third year running.
Next year´s revenues being around £185M – but only £50M plus a parachute payment – if we are relegated.
Notice the £52M in revenues we got the last time we were down in the Championship is 2009-2010.
So yes being relegated would be a catastrophic loss in revenue for Newcastle United.
And this is what Mike Ashley will have to wrestle with if Steve McClaren cannot get the wins up on the board very soon.
Whether to replace him and hope the new manager can save us, or keep with McClaren.
And if we know one thing about the owner – he´s always interested in the money side of things.