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LLambias Explains Wages, Fees Is Where Money Is Going

Derek LLambias gave an interview to the Daily Telegraph last night, and explained to the Newcastle fans where all that transfer money will be spent this summer.

Mike Ashley and Derek Llambias

Newcastle’s managing director, Derek Llambias, told Telegraph Sport last night:

“I can assure everyone that not a single penny of the £35 million has left the club and neither will it. It is all going back in.”“We have acted early and we have got the players we wanted, but none of them have been cheap.”

“We have paid good prices for them. They certainly weren’t free transfers, there are fees and wages to consider.”

“It is our responsibility to make sure we look after the club responsibly. If we spent all the money on players this summer, what are we  going to do in January if we need to bring somebody else in? We are using the money sensibly.”

And Alan Pardew at least seemed to be singing out of the same hymn book, as he said last night:

“When you sign someone like Demba Ba and Marveaux there are huge fees in there,” Lots of money in those deals doesn’t come back into the system. It goes out through agents.”

“We have spent a fair amount on those players, more than fans realize. If you add up the money and think we have not spent the £35M you will be way off. I have to mark the cards of the fans on that one.”

As we have pointed out a few times this summer, a big part of Newcastle’s use of the £35M Carroll fee is that it is being used to pay the wages of new players.

And with players also leaving the club and off the wage bill (Sol Campbell and Kevin Nolan), it’s very difficult to know just how much money will be spent this summer.

But the main thing this summer is that Newcastle bring in around six new players and try to keep the best players of their existing squad together, and only sell players like Alan Smith, Nile Ranger, Xisco, Wayne Routledge  and Leon Best, who are on the fringes of the Newcastle first team.

Of course those sales will also bring in more potential transfer funds too.

We’ll have to wait and see, and there’s still lots of time for Newcastle to bring in new players and let some of their fringe players move on this summer.

Comments welcome.

128 comments so far

  • aussiemagpie

    Jul 6, 2011 at 12:58 AM

    Comment #1

    Before everyone slags off Mike Ashley and the like for not spending more on transfer fees, you have to realise that football clubs are a business and no sensible owner would run his business at a loss.

    Im not saying that I am completely happy with the way Ashley has run the club, but if he didn’t buy it, we would have inevitably been relegated under Shepherd and we would have become exactly like Leeds.

  • Geordindo

    Jul 6, 2011 at 12:58 AM

    Comment #2




    Jul 6, 2011 at 12:59 AM

    Comment #3

    b***ards i knew this would happen


    Jul 6, 2011 at 1:01 AM

    Comment #4

    geordinho hope u feel stupid

  • What a load of tosh and that’s is being polite.

    The 3 of them are atleast consistent, consistent liars but come on surprise us and strengthen the squad, be “responsible” and get the job done before the season starts let alone before our “bonding” trip to the U.S.A.

  • TheHeyman

    Jul 6, 2011 at 1:08 AM

    Comment #6

    Not a penny from the 35m will be taken out the club…but the Sky money…Thankyou very much.

    Seriously, if we were not going to spend the money, then we should have kept AC. Him and the new boys would have been a perfect combination!

  • ..SwedishMagpie..

    Jul 6, 2011 at 1:16 AM

    Comment #7

    “They certainly weren’t free transfers” ehhh?

  • 09nufc09

    Jul 6, 2011 at 1:21 AM

    Comment #8

    Free transfers cost alot, players like to run down contracts because that way they get alot more money in signing on fees and wages, clubs dont pay a transfer fee but pay alot more in salary and fees ( ba was 3 mil plus 60 k a week ). We aleady have a stronger team than last year and thats without the other 2 signing and more development players. 1 first team player left 3 brought in and 2 more due to arrive.

    The hayeman… We were due to break even this year including the sky money, so with the increased wages from tiote, cabaye, marveaux, ben arfa(now perm from jan) and ba we would be making a loss unless we put some of the carroll money towards increased wages. Ashley has already said he wants the club to run itself and from next year the club is going to be one of very few clubs in the prem to be making a profit.

  • rharrison

    Jul 6, 2011 at 1:22 AM

    Comment #9

    Its the usual llambias cow manure. NUFCs income is around 70M a prem season and is enough to cover the wages. I understand not running a club at a loss but in order for a club to break into a generous profit they have to climb up the league and that takes investment, which we are still waiting for MA to do.
    Relative to newcastles transfer profits of the past 4 years (48M) i’d say the transfer agent fees are pittance and another mistruth to cover the fact all they are interested in is keeping newcastle in the prem enough to pocket money from buying cheap foriegn talent and selling them on.
    They are dispassionate, greedy and after short term gain from a business that they know from the fans guarantees a steady income to cover running costs.


    Jul 6, 2011 at 1:24 AM

    Comment #10

    Sunder**and sold a player to Liverpool and are using the £20 million they received to buy some very good players

    Starting with Conner Whickham..£8 million and going up to £13 million if he does the bizz

    Also Gardner £5 million from Brum and one or two others for real transfer fees

    With that they wont be servicing the wages and agents fees they have spent it totally on very good players

    Real players for real money ,,no fooling the fans with lies there if the truth be told ,,that’s for real

    We Have signed players for nothing apart from a few signing on fees and agents fees .. What could that amount to?

    What about the £60 million TV money, can that not service the wages of the free transfer guys ? And how much do we spend on season tickets and merchandise ?

    4 players ? should we not be servicing wages out of TV money and commercial sales ?

    They Got the cabeay money out of the Nolan sale .

    Im afraid we are being lied to again….

    £35 million quid should have bought 2 absolute top strikers..

    If you sell your top striker then you have to replace him surely?

    And selling your top striker in january Chrisssakes !

    What other newly promoted club would sell the main goalscorer/top striker in the january transfer window ?

    Kevin Keegan said on the BBC recently that Newcastle United fans would not see a penny of that money spent on decent players ..

    He also said he was surrounded by liars when he was here ..Do you Believe Kevin now ?

    Ashley is only here to sell players he gets for a pittance through Carr’s good scouting …We are going Nowhere …

    This is a disgrace , He is telling lies to the men women and children who have and do love Newcastle united ..through the generations ..

    He is showing us total contempt and disrespect in expecting us to believe the crap that Pardew and Lambias are spewing out to us What a disgrace !!!!!!!!!!!!

    And before you have a pop at me ..remember this

    What newly promoted club sells its top goalscorer/striker in the January transfer window .

    Kevin Keegan sir ..YOU were right all along .

  • north east lincs toon

    Jul 6, 2011 at 1:25 AM

    Comment #11

    Up yours llabiarse full of shit!

  • EllaGuru

    Jul 6, 2011 at 1:34 AM

    Comment #12

    While Llambias may indeed be pulling the proverbial wool over our collective eyes on this one (I for one don’t take issue with Pardew on this one, he is merely an information proxy), at least he has come out and addressed the situation in public. Lets give some small credit where credit is due.

    I do think that we are being short-changed massively, as others have pointed out also. Look at our significant TV revenues, merchandising revenues, not to mention the bumper parachute payments from the relegation fiasco. OK, we have invested in under-soil heating, which is great, but the numbers don’t tally.

    Also, when we think that from the wages perspective, we will maintain the “status quo” in terms of the overall budget. A couple of big earners will (or have already left) and a couple of moderate earners will come in.

    I am relatively pleased with the business that has been carried out so far. However, despite the insistence of a lot of readers here that Ben Arfa will play in a removed, No. 10 role, off the striker, I for one am worried by the current forward options. Demba Ba is merely a stop gap, not a solution. Showboat, Ranger, Best and co do not exactly inspire confidence! Pardew is harking on about playing attractive football, which I wholeheartedly support, but when you look back to the days of Keegan/Robson, we always played with a No. 9 who was, to borrow football manager terminology, a complete forward.

    We get in a young, hungry Shearer, and we are set up for an interesting season. Simple eh? 😀

  • Geordindo

    Jul 6, 2011 at 1:35 AM

    Comment #13

    @boom boom the first, no, never felt a single bit at all, im just doing it for fun of it, unlike some tense boom boom u are =)

    sports are supposedly for entertainment, so go easy u guys, i love the club, i’ll sit and support, im optimist of this season.

    i’d prefer a bunch of liars who delivers than an egomaniac who resigned and whine all the time. sour grapes.

  • pizzicatochan

    Jul 6, 2011 at 1:37 AM

    Comment #14

    I am not speaking for the management, but it seems like they won’t satisfy anyone of you guys anymore because their names are Mike Ashley, Derek Llambias and Alan Pardew. Is this just personal or what?

    If I were you, I will judge during the end of the transfer window, period.

  • 09nufc09

    Jul 6, 2011 at 1:39 AM

    Comment #15

    Online guy… Sunderland made a loss of 30 mil last season and are in alot of debt, they are digging their hole deeper and it will soon catch up with them. The new financial rules come into play soon and we have no external debt. Our wage bill for the 4 players lost cambell, kuqi, carroll and nolan has more than doubled by the players brought in ba, cabaye, tiote, ben arfa(now perm) and marveaux. The money for the increased wages has to come from somewhere if we want to still break even and allow the club to run debt free.

  • Xavi

    Jul 6, 2011 at 1:39 AM

    Comment #16

    god those free transfer fees must be in the millions!!!

    i cant stand llambias. feel like punching him in his weasel face.

    it very hard to sign good players in january transfer window!

    we should be spending it now

  • manxpie

    Jul 6, 2011 at 1:46 AM

    Comment #17

    Ffs right imagine if u were a antiques dealer right n were goin to the biggest antiques fair in the world wud u tell every1 how much money you were gonna spend or had left?? NO ya wouldn’t coz u’d wan’t the best deals u cud possibly get i think we’ll get a couple of decent players in (striker n right winger) n then taylor n a few younger prospects!

  • Geordindo

    Jul 6, 2011 at 1:48 AM

    Comment #18

    thats why MA are billionaires and we arent, because having 35 mill pounds doesnt mean we have to spend it all in one go. saving is essential, now he doesnt have to live paycheck after paycheck

  • Davies

    Jul 6, 2011 at 1:53 AM

    Comment #19

    These won’t be the only four players coming in in this window, but I agree we probably won’t be breaking the bank on the remaining signings, how ever many that may be. I don’t mind that, as long as we’re getting good players and anybody leaving has a good replacement bought in.

    I really don’t want to see anybody sold on deadline day when there’s no time to get another player in to replace them.


    Jul 6, 2011 at 2:02 AM

    Comment #21


    You make some good points and I agree with you in some respects ..but What I cant take is being lied too..so the heart Kicks in and the fair play idea that newcastle fans carry around with them

    One overriding thought is this one ..

    Look after the team out on the pitch and everything else will follow .

    After all we are a football club, Not a financial institution.

  • dazza

    Jul 6, 2011 at 2:09 AM

    Comment #22

    09nufc09 is the only one speaking any truth.

    we have to realize we are no longer ran a la ManU / LPool style who are run at crazy debt and only payoff the interest each year, like in the shepherd days.

    I for one appreciate the way he is doing business. Just bring in an few more bargains before the end of the window and everything will be sorted. That Argie Donkey plz

    Remember most activity won’t happen till the end of the market, use the sale of Adams as a barometer.

  • MadAboutToon

    Jul 6, 2011 at 2:09 AM

    Comment #23

    ONLINE GUY, you compare scumderland signing to yours. wickham, gardener are ba, cabaye? that’s a tough one, not!! and yeah scumderland are spending big alright, on second rate players while were signing inernational players.

  • 09nufc09

    Jul 6, 2011 at 2:14 AM

    Comment #24

    I think getting ba, marveaux, cabaye, hba, tiote in the last 2 years is looking after the team on the pitch. Smith or tiote? ba or ameobi? Cabaye or guthrie? Hba or nolan? Marveaux or routledge? … Improvement is being made.
    Bad finances lead to a bad team, leeds and portsmouth are prime examples of this.

  • gonufc

    Jul 6, 2011 at 2:15 AM

    Comment #25

    “I can assure everyone that not a single penny of the £35 million has left the club and neither will it.”

    I bloody well hope not!! That would be simply disgraceful- congrats on not being an explicitly deceitful crook!! So, I think we have just learned how this summer will go- very few if any more signings and all very cheap.

    As somebody said earlier there is TV, Gate receipts, sponsorship, etc. to pay for these wages, they are simply choosing not to spend money on players. Not that I want another Michael Owen (Definitely do not want anything like him ever again!) but we’re very unlikely to make a fantastic europe quality side spending no more than 5m on any players.

    It is a complete lack of ambition from the club to be this tight with the money.

    …and Sunderland of all people got Conner Wickham!! Argh…


    Jul 6, 2011 at 2:17 AM

    Comment #26


    Hey Conner Whikham will play for England..He is a great prospect ,,I wish Newcastle had signed him ..

    But my point is we wont pay the going rate for a player ,,

    ,I hope Scumunderland get relegated and then end up in the conference or similar ..but they have done good Bizz… I hate the Bas*8ds really ..but we have loads of tv money and + £35 million and we are being told they have already spent it !!!!!!!!!!!

    Do you like being taking for a fool ? and do you like being lied to ? Give it some thought . I appreicate you love the Toon like me so no hard feelings mate .

  • Trent Toon

    Jul 6, 2011 at 2:22 AM

    Comment #27

    Judging by some of the comments from most of you, no one has an idea how to handle money!!!

    It is comical that people are whinging about why the owners are not spending when newcastle has been losing money for years! 20 million year after year!!!

    Its a simple rule: Spend what you can afford, if not don’t spend it!

    So if the owners are saying if we spend all the 35 million in transfer fees and forget about wages we will be making loses.
    Then for goodness sake so whinging they are giving our club room to breathe!

    I guess over past years this is what we as fans we have expected and have seen, as soon as we tighten the strings to stop the loses everyone cries.

    Get over it!!

  • 09nufc09

    Jul 6, 2011 at 2:26 AM

    Comment #28

    Online guy… Connor whickham has the potential to be a good player in the same way ranger has the potential to be a good player. Whickham cost sunderland 13 mil we got ranger for nothing, you wonder why sunderland are in so much debt? Its making stupid signings and paying the going rate. 20 mil for hender and 35 for carroll, if thats the going rate then the club should carry on buying players from abroad.
    The sky money only covers our current wage bill so if we want to increase it with new players on higher wages we will have to put some of the money from the carroll sale towards the wage bill other wise we will be running at a loss again.

  • brighter

    Jul 6, 2011 at 2:27 AM

    Comment #29



    Jul 6, 2011 at 2:29 AM

    Comment #30



    Shola Will be out injured half a season ..as usual

    Marveuax will be on the treatment couch most of the time as he is injury prone

    And Ba has a dodgy Knee which you cant deny so what have we left ..Cabeay out of all the new guys ..we are signing RISKS on FREE’Ss !!! and thats the STARK truth.


    And tell me where is the season ticket money gone ? how much is that ?

    And tell me where is the £60 million pound + TV money going ? c’mon get with the plan ..you are being Lied too man.


    Jul 6, 2011 at 2:35 AM

    Comment #31

    Got an inklin that there are some Ashley Apologist’s on here now ..

    Infiltrated by Ashley’s flunkey’s .Seems to be the story here now..


    Jul 6, 2011 at 2:40 AM

    Comment #32

    Right Thats enough footie for one day ,,now wheres my blow up doll

    Need to give her a wash ..forgot this morning …

  • 09nufc09

    Jul 6, 2011 at 2:43 AM

    Comment #33

    Online guy… Marveaux is not injury prone he has had one serious injury, shearer had 3 does that make him injury prone?
    Ba has a dodgy knee but misses very few games, check his stats from his last few seasons.
    Every signing a club makes has a risk, ronaldo to real madrid had a risk(had not played in la liga) but if the player is deemed good enough clubs take the risk.
    The club is not saying they have spent all the 35 mil they are saying they have spent sum and are planning on bringing in 2 more players plus some development players.
    Im as much in the know as u to where the money goes but if a club is making a loss of 17mil last season then is breaking even this season im guessing it goes towards paying off debt and player transfer fees etc, next season we are going to make a profit and then we will be able to increase our wage bill and pay more in tranfer fees as we will not be paying of any debt.
    Example… We lost carroll for 35 mil who was on 30k a week but that allowed us to give tiote a 6 year contract on 60k a week this meening he is alot more difficult for another club to buy. Then we had money left over to buy and pay the wages of ba, cabaye, marveaux and hba for a year without getting into any debt and still have money left to improve the squad further.

  • MadAboutToon

    Jul 6, 2011 at 2:57 AM

    Comment #34

    ONLINE GUY, yeah wickham is a hot prospect and i would have loved if newcastle had bought him but i don’t think he’s ready for 1st team football in epl, and i know newcastle hasn’t spend anything yet but it’s early days and the least i expect newcastle to buy is a ST and if that’s the case them maybe that will give some of the younger players a chance.

  • 09nufc09, the goal posts are being moved again I can see. I thought it was wait ’til the transfer window closes but now “we’re” talking about the 9th and 10th window(since Ashley’s been here).

    It’s a joke man, 7 windows with ashley and he’s still getting away with it cos there’s people who lap it up. OK he’s a business man and I can see how NUFC can benefit but we’ll lose a heck of a lot of good talent on the way like our disillusioned Jose who’s another ready to quit.

    It’s a vicious circle, we get good players at good prices and they perform well and get sold to “top” teams.

    We are also lied to continuously which is unforgivable but the love for the team means we turn a blind eye.

    £35mil+4 mill (Nolan) , No way have we spent anywhere near £40 mil on the team, Nowhere near.

    and I’m supposed to listen to people on here who think it’ll all be good in the end when the likes of KK, Shearer, CH and I’m sure many MANY more respected people wouldn’t go anywhere near him.

  • pizzicatochan

    Jul 6, 2011 at 3:30 AM

    Comment #36

    Would you all remember we signed the “new Rooney” Aaron Spear a few years ago? Did he ever turn up to be a good player? Nah!

    Same applied to Connor Wickham.

  • Sav

    Jul 6, 2011 at 3:30 AM

    Comment #37

    If Best and Ranger are fringe players, what does that make Shola and Loven? We know the latter pair won’t last the season without injury, whereas the youngsters have good fitness.
    And will we get big bucks to reinvest by selling them?

  • hongkong_magpies

    Jul 6, 2011 at 3:44 AM

    Comment #38

    The club uses the 35m to pay wages to players, so if Carroll not being sold, the club will not pay wages??? If Carroll not being sold, the club will not sign any new player???

    And yes, where is the TV money? season tickets money? All save in the bank because we have 35m to spend????????

  • Widowmaker

    Jul 6, 2011 at 4:05 AM

    Comment #39

    KK was right.

  • ChicagoToon

    Jul 6, 2011 at 4:07 AM

    Comment #40

    anyone else think its possible that part of the 35m he’s talking about is counting people we are in secret talks with?


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