Where Has All The Money Gone At Newcastle?

In January Newcastle didn’t spend one penny in that transfer window, much to Rafa Benitez’ annoyance.

But this summer on July 1st was the start of a new financial year.

And we know we will get at least £100M (around £125M if we finish 10th) from the Premier League next May, yet the club only spent £12M net on transfers?

So how come the money is in such short supply at Newcastle.

We know we cannot compete with other mid-table Premier League clubs like Bournemouth, Swansea, West Brom, Southampton, West Ham, Stoke City, Crystal Palace and others, but surely we had a lot more than £12M to spend this summer?

Why did we not use short-term loans based on the money we are guaranteed next May to bring in top players?

That would have had us finish further up the league table, and we could have even made money with that policy.

Now we hear that Rafa Benitez wanted to sign a free agent, but Newcastle couldn’t even afford his wages.

Rafa Benitez – couldn’t even afford a free agent

Free agents ask a lot in wages.

We know that since when we signed Jack Colback three years ago, we have just found out he’s on a whopping £70K/week at Newcastle, but he is not one of our best players by any means.

There has to be more money available than just the £12M spent, so we don’t really know what’s going on financially behind the scenes.

Other than we know that Mike Ashley is more interested in having healthy finances at Newcastle rather than a strong team put out on the field.

That’s a recipe for disaster for any owner, and over the last 10 years, Mike Ashley has amply demonstrated that.

Comments welcome.

87 comments so far

  • Lindisfarne

    Sep 3, 2017 at 8:38 AM

    Comment #1

    Without looking it up, the loan to MA was around £120m at June 2016, an amount accrued due to the owners mistakes. During the Championship season a further £30m odd was also added to cover the running costs of the club. A total between £150-165m which will not be repayed whilst the club has little profit, not helped by two relegations and a diminishing commercial revenue (opposite to other PL clubs).

    When MA bought the club he payed around £200m but is attempting to sell at £400-450m to ensure a good profit, presumably as a reward for his cost cutting and ‘saving’ the club from ruin. Alternatively he is thought to be looking for £200m investment in the club for 50% ownership. But I do nt believe this money would be for the clubs use.

  • hibbit

    Sep 3, 2017 at 8:39 AM

    Comment #2

    Colback is on £35 K a week

  • Slank

    Sep 3, 2017 at 8:44 AM

    Comment #3

    Ed, don’t you think it’s about time to give this ‘soul searching / witch hunt’ a rest ?

    You are making ridiculous generalisations about the clubs ‘we cannot compete with’. If the bulk of the income of clubs now comes from league position in the Premiership then Stoke, Crystal Palace, Bournemouth and Southampton should have received more money than us available to spend on transfers but we spent more than them.

    What has hapenned has hapenned. Get over it. Let’s have some positivity, please.

  • SUTTY1978

    Sep 3, 2017 at 8:44 AM

    Comment #4

    What Money? We got about £7m in TV money last year plus about £40m parachute payment. Wages were about £70m plus there’s the running costs of the stadium, training ground, £5m for Rafa etc. etc.
    Which magic pot of cash was the £70 or £100m for transfers supposed to come out of?
    All previous transfer surplus will have been used last season to supplement the meagre income.

  • Lindisfarne

    Sep 3, 2017 at 8:50 AM

    Comment #5

    How about this for positive?
    England scored four against Malta.

  • Offkey

    Sep 3, 2017 at 8:50 AM

    Comment #6

    Ffs, if you don’t agree with Ed, fine, comment and talk about it with those who undoubtedly agree with ed in whole or in part. But don’t tell him to write something else, just go somewhere else. You do not run a dictatorship.

  • Jib

    Sep 3, 2017 at 8:50 AM

    Comment #7

    The above crock was written by noted Mackem Clive Hetherington
    I suppose when your own club is so shite this is what you have to do
    to amuse yourself

    Journalisted says:-
    Clive Hetherington has written…
    More about ‘sunderland’ than anything else
    A lot about ‘newcastle’ in the last month

  • Slank

    Sep 3, 2017 at 8:54 AM

    Comment #8

    There are only a select few, in the club, who know the exact amount available for transfers.

    My guess they would almost certainly include Chanley, the clubs’ finance director and Benitez. Perhaps one or two others in the inner circle. I doubt whether the owner would know as he leaves everything to others to manage.

    Behind these select few everything else is conjecture regarding money I suspect.

  • Slank

    Sep 3, 2017 at 8:56 AM

    Comment #9

    Behind – Beyond

  • expatmag

    Sep 3, 2017 at 8:57 AM

    Comment #10

    How much was the sponsorship money from Fun 888, over how many years and where has this seasons proportion gone?

    How much of the Sissoko and Wijnaldum fees have been received and what is outstanding?

    What would the annual interest be on the loans ro Ashley if they were to banks instead?

    How much do other clubs receive in annual major ground sponsorship by companies of similar size to Sports Direct to cluvs in similar size to NUFC?

    How much so we receive from other major sponsors on an annual basis? Where doss thiz money go?

    What is the total annual cost of NUFC staff, both playing and administrative and where does all the money come from to pay them?

  • Slank

    Sep 3, 2017 at 8:57 AM

    Comment #11


    Is this blog only for people who agree with Ed and/or each other ?

  • Lindisfarne

    Sep 3, 2017 at 9:03 AM

    Comment #12

    If David Sullivan is responsible for ” Intellectual pornography”, then MA produces cheap crap.

  • expatmag

    Sep 3, 2017 at 9:03 AM

    Comment #13

    Furthermore, the club is in debt to Mash holdings and not banks therefore Ashley, as the major director, can reduce tax payments due to this debt so it is beneficial for him.

    Due to this, isnt he getting a free run on not paying for the sports direct sponsorship?

  • Jib

    Sep 3, 2017 at 9:18 AM

    Comment #14

    MA produces cheap crap

    I’m fairly sure Ashley would agree with you

    Do you think Ashley wears SD stuff ?

    You are a silly fellow

    Being rude about Ashley’s business is hardly germaine to any discussions
    about NUFC’s problems as is calling him fatty all the time.

    It’s a bit like going to a Labour Party meeting where nuclear proliferation is being
    discussed – and you heckling from the back “Jeremy your hair is getting a bit thin!!”

    Very constructive (not)

  • lochinvar

    Sep 3, 2017 at 9:21 AM

    Comment #15

    Ashley or Sports Direct were reported as buying an executive jet for £40m last year . Don’t know if that happened but it certainly wasn’t used in the transfer window to bring in new players. Did it take Charnley for a ride anywhere, ?

  • jesperfuglsang - capt'n awesome of the lemon crew

    Sep 3, 2017 at 9:23 AM

    Comment #16

    Imagine having to share ownership with Mr. Ashley…I think that would frustrate any billionaire…

  • Offkey

    Sep 3, 2017 at 9:27 AM

    Comment #17

    Stank can you read?

  • Offkey

    Sep 3, 2017 at 9:28 AM

    Comment #18


  • Offkey

    Sep 3, 2017 at 9:29 AM

    Comment #19

    If so, your question is already answered.

  • rab

    Sep 3, 2017 at 9:29 AM

    Comment #20

    # Net Spend last 5 Years Purchased Gross Sold Nett Per Season

    1 Manchester City £723,850,000 £184,000,000 £539,850,000 £107,970,000
    2 Manchester United £611,800,000 £174,550,000 £437,250,000 £87,450,000
    4 Arsenal £298,740,000 £116,850,000 £181,890,000 £36,378,000
    3 Liverpool £396,300,000 £251,080,000 £145,220,000 £29,044,000
    5 Chelsea £544,459,000 £410,450,000 £134,009,000 £26,801,800
    6 Leicester £179,750,000 £62,750,000 £117,000,000 £23,400,000
    7 Crystal Palace £166,035,000 £56,700,000 £109,335,000 £21,867,000
    8 West Ham £188,450,000 £81,870,000 £106,580,000 £21,316,000
    9 Watford £144,200,000 £51,650,000 £92,550,000 £18,510,000
    14 Everton £277,600,000 £200,100,000 £77,500,000 £15,500,000
    10 Brighton & Hove Albion £75,805,000 £12,000,000 £63,805,000 £12,761,000
    11 AFC Bournemouth £88,450,000 £24,830,000 £63,620,000 £12,724,000
    15 West Bromwich Albion £117,850,000 £62,209,000 £55,641,000 £11,128,200
    12 Newcastle United £200,300,000 £145,150,000 £55,150,000 £11,030,000
    15 Stoke City £101,700,000 £53,250,000 £48,450,000 £9,690,000
    16 Huddersfield Town £41,615,000 £14,400,000 £27,215,000 £5,443,000
    17 Burnley £85,150,000 £61,450,000 £23,700,000 £4,740,000
    18 Southampton £222,800,000 £210,550,000 £12,250,000 £2,450,000
    19 Swansea £133,325,000 £138,060,000 -£4,735,000 -£947,000
    20 Tottenham £329,450,000 £339,400,000 -£9,950,000 -£1,990,000

    Attendance figures

    Home attendances

    Average attendance Lowest Highest Total Capacity * %Full
    1 Manchester Utd 74,974 74,928 75,021 149,949 75,731 99.0%
    2 Tottenham 70,724 67,862 73,587 141,449 90,000 78.6%
    3 Arsenal 59,387 59,387 59,387 59,387 60,355 98.4%
    4 Liverpool 53,172 53,138 53,206 106,344 54,074 98.3%
    5 Newcastle Utd 52,085 52,077 52,093 104,170 52,404 99.4%
    6 Manchester City 49,108 49,108 49,108 49,108 55,097 89.1%
    7 Chelsea 41,499 41,382 41,616 82,998 41,841 99.2%
    8 Everton 39,045 39,045 39,045 39,045 39,600 98.6%
    9 Leicester City 31,902 31,902 31,902 31,902 32,500 98.2%
    10 Southampton 31,435 31,424 31,447 62,871 32,689 96.2%
    11 Brighton & Hove 30,415 30,415 30,415 30,415 30,750 98.9%
    12 Stoke City 29,459 29,459 29,459 29,459 29,459 100.0%
    13 Crystal Palace 24,462 23,477 25,448 48,925 25,648 95.4%
    14 West Bromwich 23,857 22,704 25,011 47,715 26,850 88.9%
    15 Huddersfield 23,838 23,548 24,128 47,676 24,500 97.3%
    16 Swansea City 20,862 20,862 20,862 20,862 20,938 99.6%
    17 Watford 20,294 20,181 20,407 40,588 21,577 94.1%
    18 Burnley 19,619 19,619 19,619 19,619 22,546 87.0%
    19 Bournemouth 10,460 10,419 10,501 20,920 11,464 91.2%
    20 West Ham Utd 0 – – – 57,000 –

    So we are below average spend for PL at £11million, but which club with our average attendance is only spending this much, we are top attendance in percentage 99.4% full, add in the free sports direct sponsorship deal, it makes you wonder…..

    A fiddle going on? or mismanagement or a tax fiddle

  • Lindisfarne

    Sep 3, 2017 at 9:32 AM

    Comment #21

    There is alot of stirring about Rafas position, but over his time at NUFC he has spent £100m on transfers. Not to be sniffed at, but this is slightly below the amount coming in from transfers. The small profit could easily be whipped out by loan fees and other expenses.

    So a reasonable explanation as to why there was no extra money for additional players and Rafa will have to learn to work within these tight parameters. Particularly as there appears to be no money available from elsewhere at the club. So why is Rafa feeling frustrated?

    Perhaps it is the same circumstances that fans have been dealing with for the past ten years, a sense that there should be more. Each year the accounts show that the club only spends within its means and all costs are factored for prior to spending. Yet there is a deep feeling that there should be more, without the fear of plummeting into administration, if only the success of the club was utilised properly.

  • Jib

    Sep 3, 2017 at 9:33 AM

    Comment #22

    I think SD must have paid for it cos there were reports of shareholder displeasure at the purchase

  • Jib

    Sep 3, 2017 at 9:35 AM

    Comment #23

    The jet that is

  • Jib

    Sep 3, 2017 at 9:38 AM

    Comment #24

    but this is slightly below the amount coming in from transfers.

    It’s not actually

    As has been said many times
    NUFC buy with up front money but tend to sell for intallment payments.

  • Lindisfarne

    Sep 3, 2017 at 9:41 AM

    Comment #25

    Damn you Jib, exploiting the one weak comment I post! I wanted to make a clever joke but could not bring myself to repeat the “Intellectual…….” and you that pride yourself on being a football discussing guru went and got me. Touche! Y’tool! #bantz!

  • jesperfuglsang - capt'n awesome of the lemon crew

    Sep 3, 2017 at 9:48 AM

    Comment #26

    Lindis…a part of the frustration comes from knowing that

    a) SD doesn’t pay for advertising

    b) Higher ambition equals a higher league finish and there for price money

    c) Ashley strips the club for business’s that generates money

    d) Ashley loans us money to cover loses from his mistakes…money that could help us now

    So yes, we all think there should be more money

  • Lindisfarne

    Sep 3, 2017 at 9:53 AM

    Comment #27


    So ae you saying that , in the period of time that Rafa has been here he has spent more on transfers than generated from outgoings?

  • hibbit

    Sep 3, 2017 at 9:54 AM

    Comment #28

    no body has any idea whats fact or fiction in our club or with Ashley we just grasp at any straw looking for answers
    its a complete waste of time all these what if’s no one has a clue what the truth is

    have a good day

  • Lindisfarne

    Sep 3, 2017 at 9:55 AM

    Comment #29

    My phone is playing up, I will leave Mister Tuff to deal with that one.

  • Rotonda heights

    Sep 3, 2017 at 9:57 AM

    Comment #30

    I think no matter who you support, eg if you’re an Ashley acolyte like Jib, or one of many with an opposing view, indeed whoever’s colours you fly under, ultimately you can only conclude that MA’s tenure has been a total, unmitigated disaster.

    Is it any surprise that after 10 years of woeful appointments and decision making, our only shining light in 10 years of mediocrity now wants to leave sooner rather than later. It’s not solely about the money and who is wrong or right, above all it’s the repeated and total lack of professionalism and empathy shown towards every aspect of the the club and it’s fans as a whole.

    It’s obvious Ashley wants out but can’t sell at his price so the status quo is a disinterested owner and a thoroughly disillusioned coach. Sad times.

  • Jack Root

    Sep 3, 2017 at 9:57 AM

    Comment #31

    Sutty and where’s the money gone.
    I posted at the beginning of August On the question of player amortisation, accounting practice and the calculation of player Costs. There is a lack of transparency in football over the transfer market. Football journalists generally report what they’ve be told. Take Neymar joining PSG for £196 million whereas PSG look at the cost as £500 million. Reportedly 5 year deal at £596/- pw and signing on fee etc.

    Any buying club records the player cost over the term of the contract. It’s a fundemental practice in Europe. So players NUFC want to sell but can’t find a buyer for are an ongoing cost and a reduction at this time in the transfer kitty money we have available to bring in new players. There is no sharp practice by Ashley he is abiding by what he had said to Rafa. The only surprise to Rafa is transfer/ wage inflation and the inability to move players out. As the window closing approaches there could well be sweeteners to move players on. As pointed out, any player leaving and joining another club but on inferior financial terms would expect an appropriate financially negotiated settlement from us. Causing a dilution to our transfer kitty.

    I would be very surprised if Rafa is not familiar with the accounting treatment and calculation of player costs and how the transfer fee,wages and any agent fees, over the term of player’s contract.

  • Toondog2

    Sep 3, 2017 at 10:01 AM

    Comment #32

    Just a thought , would Shelvey be a better no10 than Perez ?

    You would have Ritchie and Atsu on the flanks and midfield would be Merino Hayden.

  • Rotonda heights

    Sep 3, 2017 at 10:03 AM

    Comment #33


    I think rafa has spent 90m on 17 players. That only works out just over 5m per player.
    Spurs just bought a relative unknown for 42m!

    It’s funny, Jib has always I think kind of supported rafa, but now finds himself in conflict
    putting the case for ashley. Difficult one.

  • Rotonda heights

    Sep 3, 2017 at 10:06 AM

    Comment #34


    i’ve been calling that for ages, a la gerrard.

  • toon kk

    Sep 3, 2017 at 10:11 AM

    Comment #35

    Is NUFC still under investigation with the tax man? Mash will want a few coffers left over to cover any potential outlay.

  • Toondog2

    Sep 3, 2017 at 10:13 AM

    Comment #36

    ? The Best team would be:-


    Yedlin lejeune Clark Dummett

    Ritchie Merino Hayden Atsu

    Shelvey Joselu

    Subs Elliott Mitrovitch Mbemba Gayle Perez

    Tired of following the money which isn’t there

  • Jib

    Sep 3, 2017 at 10:19 AM

    Comment #37

    toon kk
    It’s under judicial revue
    West Ham and NUFC maintain the Tax flat feet were too heavy-handed and had no real cause to raid the clubs.
    The Tax authorities are at the moment prohibited from looking at the stuff they seized – files laptops mobiles – and if the Law lords find in the club’s favour there could be compo claims heads rolling and loss of jobs .
    Don’t you feel sorry for those poor taxman just doing their job ?

  • pablos left foot

    Sep 3, 2017 at 10:22 AM

    Comment #38

    Toondog. Good line up, just hope the injuries don’t start kicking in! Think MA got the jet off Ebay.

  • Levi

    Sep 3, 2017 at 10:34 AM

    Comment #39

    How about we forget about the window and move on now folks. We will stay up comfortably me thinks. 14th

  • Levi

    Sep 3, 2017 at 10:36 AM

    Comment #40

    Also we don’t have any room for more players. 25 man squad. Full. All injury free. I’d say we are in decent shape. Would of rather had a better player then josolu other then that I’m one of the 7% that said happy


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