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Financials Revealed For Newcastle Transfer Budget – And Time For Ashley To Get Off The Fence


Newcastle United released their financials for the year 2017-2018 yesterday – which is when we were back in the Premier League.

The results were good with revenue of around £178.5M and profits at about £18.7M.

Newcastle have quickly put their financial house in order after being promoted, but that’s what happens when you don’t spend much money.

But it looks like Rafa will have decent money to spend this summer according to a report in the Chronicle today.

He could have around £50M – £60M to spend this summer, and we assume that it’s a net amount.

It’s what we pay out for new players minus what we get in for players Rafa will sell.

From what Lee Charnley says below – it looks like it’s a net amount and Rafa gets the money to spend on what he can bring in for outgoing transfers.

Mike Ashley and Lee Charnley – runs the club’s financials

That’s important because Rafa could well be selling both Isaac Hayden, Jonjo Shelvey, and others this summer.

The news is that Managing Director Lee Charnley has revealed that there is about £11M that wasn’t spent this season that is now available to spend in the summer – the next financial year which starts on 1st July.

Here’s what Lee Charnley said yesterday and it’s maybe the closest we’ll get to actual financial figures for the transfer window.

“Our budget to strengthen the team and establish our place back in the Premier League has been £122M over the last two seasons.”

“That was an initial agreed budget of £70M plus an additional £52M generated as a result of sales and outgoing loans.”

“We have spent just over 90% of that – £111M.”

“That balance of £11M will be carried forward to supplement what we have for the forthcoming transfer windows as we look to strengthen again.”

So it seems Rafa does get to know how much he has to spend and now we are in the Premier League to stay – the money is definitely there for Rafa to build a much stronger side at Newcastle.

But there are other things that Rafa wants Newcastle to do to improve as a club.

A new transfer process and older players to remain or be signed when Rafa sees that it’s necessary from a team perspective.

And he wants upgrades to the Benton Training grounds and needs to overhaul the Youth and U23 setup.

It’s been four weeks now that Rafa has waited for answers to those requests.

It’s time for Mike Ashley to get off the fence and give Rafa some answers – whether or not it’s what Rafa wants to hear

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63 comments so far

  • ronaldo aarons

    Apr 19, 2019 at 10:51 AM

    Comment #1

    I’m still trying to work this out. So if Rafa had a 122m over 2 seasons, he was given a budget of £70m originally so £35m each year and whatever was made by player sales. In this case £52m.

    I thought it would be easy to see this but I can’t see how the money has been spent. We buy players but recoup the money from players sold hence why Rafa is in profit over his time with us. Why is there only £11m to be carried over?

    Is there something very obvious I’m missing?

    Also, the two seasons he’s talking about, is it the championship year and promoted season or is it promoted season and coming into the season?

    5
  • Average_Contents

    Apr 19, 2019 at 11:16 AM

    Comment #3

    The last two premier league campaigns RA.

    So basically without outgoings Rafa had a budget of £70m over these two seasons which as you say equates to £35m per season.

    The only problem with that is we include the initial transfer fee, agents fees, wages and whatever else they can concoct to bring the totals together.

    By the time you factor in all of the above then that £35m per season wouldn’t stretch far.

    Even with the £52m from outgoings added to the total amount over the two seasons (£122m) then it’s still a paultry amount (£61m per season) considering what players cost these days. Or more specifically, what premier league clubs pay.

    Say for example almiron cost us a £16m transfer fee, then the clauses are added for performance related bonuses say £4m, agents fees say £1m then his contract for the entire length he signed for say 50k a week x 52 weeks x 5 years is £13m.

    That’s a total of £34m for the one signing.

    That’s why we shop bargain bin because we can’t afford huge transfer fees once all the other stuff is added on.

    3
  • Menorca mag

    Apr 19, 2019 at 11:20 AM

    Comment #5

    Has anyone ever thought that maybe mike Ashley doesn’t want Rafa at the club, he is becoming a thorn in Ashleys side. He is no yes man. and his relationship with the fans is not what Asley desires, a yes man who could guarantee 17th place in the leage would be more suitable to him.

    14
  • Jib

    Apr 19, 2019 at 11:20 AM

    Comment #6

    Good one Ron
    😀

    1
  • Jib

    Apr 19, 2019 at 11:22 AM

    Comment #7

    Menorca mag @ 5
    Eeeh no one has ever suggested such a thing !!!!

    In the last hour at least

    😛

    5
  • beermonkey

    Apr 19, 2019 at 11:30 AM

    Comment #8

    average

    if that was the case then we wouldnt have a wage bill of 93 mill
    if it is all coming out of the transfer budget

    2
  • IrishRob

    Apr 19, 2019 at 11:38 AM

    Comment #9

    Read this this morning,

    “Is the club still for sale? Charnley’s response”

    “As we sit here today Mike is still the owner of the club and as such we have to continue to operate business as usual and that of course includes planning for next season.”

    That looks to me like hes chosen his words carefully, looks very much like we are being sold. Either that or its a double bluff, but it wouldn’t be very effective if it was seeing as not everyone would be able to gleem information from that statement.

    Anyone any thoughts?

    2
  • NY Mag

    Apr 19, 2019 at 11:43 AM

    Comment #10

    Beermonkey,

    The wages were 103M, last year they were over inflated because of accountancy tricks, this year they were understated……

    1
  • Average_Contents

    Apr 19, 2019 at 11:44 AM

    Comment #11

    Beer

    Often wondered the same thing. Maybe Nymag can explain it.

    We all know the standard business procedure is creative accounting like that massive wage bill in the championship that was clearly bollix.

    1
  • Tsunki

    Apr 19, 2019 at 11:46 AM

    Comment #12

    Irishrob it means not only no sale but none on the horizon.

    4
  • IrishRob

    Apr 19, 2019 at 11:47 AM

    Comment #13

    Menorca… I don’t think so, Ash isn’t that stupid he’s frugal but not stupid. There is no “yes man” in the country who could guarantee our safety.

    It is far more catastrophic to his pocket both for revenue and ADVERTISING (for sports direct) for Ash to have us relegated than it ever would be to keep Rafa. And Rafa is the closest thing to certainty we can get for staying up.

    On top of this you’re presuming Ash doesn’t like Rafa, which I wouldn’t be so sure about either tbh.

    4
  • toonbrother

    Apr 19, 2019 at 11:47 AM

    Comment #14

    Ashley has done a stellar job managing us financially
    Given the mess he inherited from shepherd

    If Rafa plays 5 at the back and continues to freeze out shelvey, I think we will struggle At home against sides like Southampton

    Hope the news of Ritchie leaving are true
    He is not good enough for first team premier league football in my humble opinion

    4
  • Average_Contents

    Apr 19, 2019 at 11:48 AM

    Comment #15

    Nymag

    How can they factor wages twice? I.e in the wages outgoing and also into the total cost of a transfer as penfold has told us.

    Unless they show them as total spent on a player but only take them once in the wages column.

    Creative accounting

    2
  • IrishRob

    Apr 19, 2019 at 11:53 AM

    Comment #16

    Tsunki…. I can 100% see how you see it like that. It does also look like hes trying to prepare us for a frugal season which would obviously mean there is no sale. But I feel he wouldn’t say something the way he put it off there wasn’t something happening.

    However there is zero harm in coming out and saying we need to spend wisely that kinda statement isn’t gonna bite him in the backside if it is sold. But the one about the club for sale could if he came out and said anything.

    2
  • Jib

    Apr 19, 2019 at 11:55 AM

    Comment #17

    toonbrother
    opinions don’t come much humbler than yours

    3
  • bettyswallocks

    Apr 19, 2019 at 11:56 AM

    Comment #18

    There you have it ladies and gentlemen, Toonbrother has pledged his support for our wonderful owner claiming that he has done a stellar job.
    Although he is entitled to his view this just goes to show how misguided and ill informed some people can be and runs parallel with his views on match days.

    12
  • IrishRob

    Apr 19, 2019 at 11:57 AM

    Comment #19

    I’m with you toonbrother. I never rated Richie either tbh. Works hard and has great fighting spirt, and he’s the exact player we NEEDED. But were moving up slowly and he’s starting to look like a real weak spot for me.

    4
  • bettyswallocks

    Apr 19, 2019 at 12:00 PM

    Comment #20

    Jib……… I think you do a stellar job with your googling of all things NUFC related but the blog would definitely benefit if you were to refrain from voicing your opinions on stuff.

    6
  • Tsunki

    Apr 19, 2019 at 12:02 PM

    Comment #21

    “Humility. I like it. I too am extraordinarily humble”

    Toonbrother as he arrives on Ego’s planet.

    😀

    4
  • NY Mag

    Apr 19, 2019 at 12:02 PM

    Comment #22

    Average,

    Do they factor wages twice? I’ve not seen any evidence of that

    Charnley has indeed said that they factor everything into a deal……transfer fee, agents fee, wages for length of contract – is that not a sensible thing to do for comparison purposes?

    1
  • Jib

    Apr 19, 2019 at 12:02 PM

    Comment #23

    I disagree

    0
  • Tsunki

    Apr 19, 2019 at 12:03 PM

    Comment #24

    Yes Jib I agree with Betty there, you know you have this problem with context. You really should ease up on the opining thing. Have a lie down.

    4
  • hibbit

    Apr 19, 2019 at 12:05 PM

    Comment #25

    bettys
    just confirms my long held view that toonbrother is nothing more than a stellar macken wum

    5
  • Jib

    Apr 19, 2019 at 12:06 PM

    Comment #26

    NY

    What average is referring to I think
    Is
    The other day Charnley said
    In working out the true cost of a player – as well as fees
    (transfer and agents) You should also factor in their wages
    in their time at a club.

    It had nowt to do with accounts – creative or otherwise

    1
  • Tsunki

    Apr 19, 2019 at 12:08 PM

    Comment #27

    Toonbotherer has a long history of singling out a player and sparking divisive debate on that player, to no real benefit or product. Definitely south of the dirty river.

    5
  • Jib

    Apr 19, 2019 at 12:09 PM

    Comment #28

    Stop press !!!!!
    Tsunki agrees with Betty

    0
  • NY Mag

    Apr 19, 2019 at 12:12 PM

    Comment #29

    Jib,

    Yes, I know – the ‘club’ has consistently said this for years…..makes perfect sense to me

    0
  • bettyswallocks

    Apr 19, 2019 at 12:12 PM

    Comment #30

    Hibbit………. Yes indeed. Just goes to show how far the turmites have burrowed. I always thought he had some Mackem in him and if he hasn’t he certainly deserves some after that comment.

    4
  • Average_Contents

    Apr 19, 2019 at 12:13 PM

    Comment #31

    Nymag

    How can they say a total transfer with wages and fees factored in costs x amount and it’s down as money paid out but then have wages as money paid out too?

    Unless as I said they don’t actually take it out at the transfer stage total outgoings but transfer it to the wages section as outgoings for actual accounting purposes.

    Shuffling the accounts. It can’t come out twice otherwise there’s be money floating around and we all know we run a tight ship and are piss poor….

    2
  • NY Mag

    Apr 19, 2019 at 12:21 PM

    Comment #32

    Average,

    Factoring in all costs when comparing deals for players is not the same as accounting once those players are bought……..

    1
  • Jail for Ashley

    Apr 19, 2019 at 12:22 PM

    Comment #33

    I love it when Jiblets starts a sentence with the words I think. It means the following post is not from Wikipedia and we can look forward to him making a buffoon of himself yet again and exposing his ignorance of the beautiful game. Although saying that, sometimes the knowledge he gets from some places doesn’t help him either, Fairs cup in ’68 anyone!!!

    3
  • Tsunki

    Apr 19, 2019 at 12:25 PM

    Comment #34

    Jib I’d agree with you too if you only got a lucky strike sometime. Blindfold and archer and give him a dozen arrows and he’d probably hit the target or near it

    You just need a hundred arrows. And a bow.

    Oh and no blindfold.

    1
  • Jail for Ashley

    Apr 19, 2019 at 12:27 PM

    Comment #35

    Just checked, the Fairs cup in ’68 was one of his, “I think” posts!!!

    0
  • Tsunki

    Apr 19, 2019 at 12:27 PM

    Comment #36

    Aye when he goes off piste we get Victor Wanyama from Bournemouth and so on and so forth… 😐

    2
  • Average_Contents

    Apr 19, 2019 at 12:28 PM

    Comment #37

    If that is the case then the total amount paid for a player shouldn’t include wages in the total final fee and come off the purchase player budget because that’s already coming out as wages.

    It’s a financial commitment yes but not actually being paid in the one financial year instead spread over however long the players contract is.

    They bump up the cost of the transfer to then turn round and say we can’t afford anymore Rafa, here’s a Joselu….

    On the flip side, what is the process when we sell a player? Do they factor in the wages saved as a total transfer fee received.

    We sell Hayden 2 years into a 4 year contract. Bearing in mind the club has already factored in his wages in total as an outgoing so the remaining two years worth of money we’ve saved, what happens to that.

    Muddying already murky waters….

    6
  • Tsunki

    Apr 19, 2019 at 12:30 PM

    Comment #38

    This is Jib going off reservation and into Thinkland –

    “Jib

    Nov 4, 2015 at 5:44 PM

    Comment #10
    G2
    Bournemouths version of Tiote , Victor Wanyama is suspended for one game , he gives their back four brilliant cover , we must take advantage.”

    😀 sorry jib it always brings a tear to the eye…

    2
  • Tsunki

    Apr 19, 2019 at 12:32 PM

    Comment #39

    I’m sure we’ve all had our clangy moments but jib is a goldmine after all. The gift that keeps on giving. And to think some wanted him banned! Never! 🙂

    3
  • Jail for Ashley

    Apr 19, 2019 at 12:35 PM

    Comment #40

    So the new training ground plans introduced a few years ago to attract new players and help you step up another level was a bit misguided, the ones we have are just fine for getting promoted and avoiding relegation year after year, we’re sticking with the same policy that has served us so well in the past (since Rafa got here) although the manager disagrees with these policies he has to agree or else. But we really want to keep him.
    Who’s being a sneaky lying prevaricator there I wonder, LC or Rafa mmm, I’ll go off and have a think about that.

    4


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