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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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Comments welcome.

 


63 comments so far

  • Jib

    Apr 19, 2019 at 12:37 PM

    Comment #41

    To be fair Wanyama was at Soton at the time
    I’ve always had problems with south coast sides

    7
  • Average_Contents

    Apr 19, 2019 at 12:37 PM

    Comment #42

    Nymag

    But that’s how they work out the transfer budget for the year isn’t it, total transfer fee, agents fees and wages for the duration of the contract.

    Again, smudging the actual money spent with what they tell everybody it costs when in fact it hasn’t cost that much hence here’s another Joselu, it’s all we can can afford Rafa. Like it or lump it.

    1
  • Jail for Ashley

    Apr 19, 2019 at 12:40 PM

    Comment #43

    Aye but Jib, we were playing Hull that day!!!

    2
  • Bambams

    Apr 19, 2019 at 12:40 PM

    Comment #44

    As always we try to read Ash by his actions, one thing that rankles me is the 100% pay rise for Charnley ! He was on £150 k but for some reason Ash put him on £300k

    Which made me wonder, Ash has no reason to pay this, but what if there is a takeover on the horizon and Charnley has signed a new contract which obviously the new owners will now have to cover. Yes normally new owners bring in their own people but we know what Ash is like with concrete contracts.

    I just dont see what this useless oaf has achieved to get a double your salary rise.

    0
  • Average_Contents

    Apr 19, 2019 at 12:42 PM

    Comment #45

    He’s done exactly what the slug wanted him to do by your account Bambams.

    Certain players not even reaching Rafa’s door mate.

    The sooner twit n tw@t fcukoff the better.

    4
  • bettyswallocks

    Apr 19, 2019 at 12:43 PM

    Comment #46

    Jib………. I’m going to have to agree with Tsunki and Jail on this one. Your footy knowledge leaves a lot to be desired as even the stuff you have googled and posted on here doesn’t seem to stay with you very long.

    1
  • Average_Contents

    Apr 19, 2019 at 12:44 PM

    Comment #47

    Not being ignorant if I don’t reply, got kids to entertain it being the Easter holidays n all.

    Laters.

    2
  • Jib

    Apr 19, 2019 at 12:48 PM

    Comment #48

    Strangely Wanyama scored a goal against us later that season
    for Southampton

    1
  • DaveD1000

    Apr 19, 2019 at 12:51 PM

    Comment #49

    twit n tw@t….love it

    3
  • NY Mag

    Apr 19, 2019 at 1:06 PM

    Comment #52

    Average,

    I’m not sure I’m making myself clear on this……….there is no relationship between a comparison of a player deal before they are bought and how they are accounted for after they are bought.

    Just to give some context (purely hypothetical)…………

    Player a transfer fee = 15M
    Player b transfer fee = 7M

    Assuming football abilities are equal, which is the better deal?

    Now, taking into account all other factors

    Player a’s agent wants a 1M signing fee and the player wants a three year deal at 40k a week

    Player b’s agent wants a 2M signing fee and the player wants a five year deal at 50k a week

    Total commitment for both players is ~22M, not such a clear distinction between the two deals

    I believe that’s all that the club is trying to portray. However, once any player is bought, the accountancy method for their cost is the same

    2
  • Bambams

    Apr 19, 2019 at 1:06 PM

    Comment #53

    Average

    That’s my point, he has done everything Ash has asked of him, now for about 5-6 years. But he has just got a pay rise now. Ash hates spending money, yet someone who is just a yes man, does nothing to help Rafa – now gets 100% rise.

    Maybe I am just looking for any sign of light at the end of this long tunnel

    🙂

    0
  • Just a fan

    Apr 19, 2019 at 1:10 PM

    Comment #54

    I wondered how long it would take for someone to jump on toonbrothers statement.
    It’s two rational for a lot of people.

    0
  • Jib

    Apr 19, 2019 at 1:11 PM

    Comment #55

    rational twice ?

    1
  • NY Mag

    Apr 19, 2019 at 1:18 PM

    Comment #56

    Bambams,

    I have to apologize……I posted yesterday that charnley had doubled his pay – I said that after glancing at the accounts (before I’d actually studied them in detail)

    Indeed, Charnley has doubled his compensation, but it’s probably not his salary…….I suspect his basic pay of 150K remains the same, but he probably got a 100% bonus (additional 150K)…..wish I was on the same bonus scheme 🙂

    2
  • Just a fan

    Apr 19, 2019 at 1:18 PM

    Comment #57

    To or too I’m still not sure

    0
  • lesh

    Apr 19, 2019 at 2:02 PM

    Comment #58

    Jiblets

    You’ve ‘always had problems with south coast sides’? Only south coast sides? Aren’t you understating your condition?

    Your seeming narcissism suggests that your problems aren’t few, they’re are probably far more than even a group of eminent psychoanalysts could identify and treat. Imagine their post analysis prognosis: Following months of painstaking testing and analysis, the consensus would be something like ‘he’s round the bend, barking, crackers’

    1
  • Bambams

    Apr 19, 2019 at 2:24 PM

    Comment #59

    NY Mag

    Cheers for that fella.

    He is overpaid even if his salary was 10 Mars bars a week !

    0
  • Moonraker15

    Apr 19, 2019 at 3:30 PM

    Comment #60

    Average
    £34 million over 5 years is less than £7 million a season so what’s your point. The bit I don’t get is why our player sales isn’t balanced against players bought; they take the wages of the contract term into account but whe selling they say we get stage payments but they don’t consider wages saved by selling. It’s just a blatant excuse to claim we have less money available than we have!
    Not a word from the despicable owner since he said we we close to a sale 6 months ago! And we are his customers!

    0
  • Moonraker15

    Apr 19, 2019 at 3:51 PM

    Comment #61

    Ny mag
    Your hypothesis is good up to a point but it assumes the players see out their contracts. If player a does well (brings us success) he probably gets a contract extension. If player b doesn’t do well, he gets sold so the £22 million figure is reduced. My point is you can’t treat a football club on pure profit and loss as there are too many variables. What if player b gets a serious injury after 3 years.
    If you own a football club you can’t guarantee profits. Ashley minimises potential losses as he doesn’t want success, only to promote SD!

    0
  • IrishRob

    Apr 19, 2019 at 6:51 PM

    Comment #62

    I’m not defending Charnley but one thing NONE of us know is how hard he may or may not work. Looking at it from a fiscal point of view Ash and to a lesser extent Charnley have transformed or financial situation, in that regard we are one of the best run clubs in the country, so it seems unlikely to me he is doing nothing.

    Bambams that’s a great point on the money and you could very well be right but I don’t see Charnley staying if Ash goes not for a minute, Charnley has been with Ash for years before he started running NUFC. He seems like the kinda guy Ash keeps with him.

    0
  • IrishRob

    Apr 19, 2019 at 6:54 PM

    Comment #63

    Also 300k for someone running a football club is peanuts some of our worst players are on double that and have nothing to worry about except warming the bench for the reserves whereas Charnley effectively runs the club.

    0

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