It’s been reported that Rafa Benitez signed a contract that could keep him at the club through the end of June, 2019 and his annual wages are as high as £6M a year and he stood to get a bonus of £3M if he’s able to keep Newcastle in the Premier league.
If he’s not able to do that it’s likely he will activate the release clause in his contract at the end of the season and leave the club.
So that’s about £21M Newcastle will invest in the new manager over the next three years if we survive relegation this season.
And our reading of that is – he’s worth every penny.
Rafael Benitez with his wife Moutse
In the grounds of their home in Caldy on the Wirral
First of all it’s a massive ask for Rafa to keep us in the Premier League after Charnley allowed Steve McClaren to remain in the job for nine months as he took us closer and closer to relegation.
Rafa has only 10 games left and we are second bottom of the league and still 9 points behind 5th bottom Swansea although we now have two games in hand.
But if he does save us, that guarantees Newcastle at least £150M in May next year for still being in the Premier League.
When you take into account some parachute payments from the PL for relegation and payment from the Championship that’s still well over £100M Newcastle will lose next season alone if we are relegated.
So the bonus is about 3% of the money we will lose if relegated – a very good deal for Newcastle United.
And his yearly wages of £6M a year are cheap at the price too.
In this last year of the current three year deal PL clubs get anywhere from £60 to £100M a year with Newcastle getting close to £80M a year.
That will increase by at least 70% next season with the new £5.1B TV rights deal, so let’s say clubs will get anywhere from £120M to £170M – if Newcastle finish mid table that’s about £155M.
And assume just for estimating purposes that each position higher in the league table next season is worth about (170-120/20) – £2.5M.
If Rafa can get us one place higher in the league that’s an extra £2.5M in the Newcastle coffers.
So how many places higher in the league can he get us compared to a lesser coach (like Steve McClaren?) – once you have that number multiply it by 2.5 and that’s the extra money that Rafa can bring in for Newcastle in £M – because he’s such a top class manager.
Notice the almost polar opposite is true for McClaren, who has lost Newcastle money this season and it could become a catastrophic loss if we get relegated.
So it was a very poor business decision by Lee Charnley last June to hire McClaren – it could cost the club big time.
The other thing is that we already have too many high paid stars who don’t produce – and there’s a few of them who certainly haven’t produced this season.
A good coach gets the best out of the players he has – and a poor coach doesn’t.
So if Rafa can get the very best out of our players their wages now become worth it to the club – and that’s more reason Rafa deserves big wages as Newcastle’s investment will get a payback also from the players.
We wont even mention that Rafa in the next three years could get us back into Europe and there is extra money the club gets from that – a massive amount if it’s the Champions League.
We’ve always thought the manager is the most important person at a club because he is in charge of all the players and he has the most responsibility.
That at least is how it works in the outside business world that people with increasing responsibilities get higher compensation.
And if Rafa is still the manager at the end of May the season tickets will be sold out rather quickly for next season at Newcastle – no struggles to sell the season tickets with Rafa Benitez in charge.
We have a feeling that Benitez, Ashley and Charnley have already talked about some of the things they will do in the summer, if we survive relegation.
One of those will be to build the world-class training facilities at Benton that have been held in abeyance for over a year now because of the threat of relegation – mainly due to the very poor choices of John Carver and Steve McClaren as our most recent head coaches.
So once the fans hear about what Rafa’s plans are – including maybe which players he wants – and also just as important which of the current lot he doesn’t want – we expect season tickets to sell like hot cakes.
The truth is that Benitez has electrified the Newcastle fans in the short two days he’s been on board.
One thing that’s abundantly clear is the biggest star in the Newcastle dressing room will be Rafa himself and not any of our players – unless we bring in Ronaldo or Messi for next season.
But maybe they are getting a bit too old at 31 and 28 respectively?