How do Newcastle plan to go forward?

Mike Ashley

Mike Ashley
How are we going to move forward?
Mike Ashley’s five-year ‘break even’ plan for Newcastle United is pretty well known now.

Some will argue that it makes business sense, other will say that it’s football and that he should be prepared to lose of a bit of cash on a season by season basis.

That particular argument has been done a million times, and I have no doubt that it will be done a million times more. I actually agree with having a financially solvent club to support, but my worry is that there is no plan to move us forward.

Last week a group called ‘United For Newcastle’ managed to break down the Iron Curtain and actually communicate with the club. You can read what the outcome was by clicking this link, but it’s this next statement which has been stuck in my mind ever since:

“The club now breaks even every month, and isn’t taking loans out. They want to be in good shape for the UEFA rules on finances for when they do get back into Europe.”

Of course there is nothing official to back this up and the only way that we will be able to tell is when the accounts for this current season are available, which will be in around 16 months time! It does kind of match my rough calculations though.

That leaves us with a problem in my book. If we are breaking even now, then how can we improve further? How can we expand the wage bill to accommodate better players? The only real ways to do that are to either increase our income, or decrease our expenditure.

Now there are many ways to increase income, and it should rise next year anyway due to increased TV money from the Premier League. Growing sponsorship revenue and corporate income is another way of increasing what is coming into the club, and that should happen next year anyway as the team will be able to attract more interest having, hopefully, lost their ‘newly promoted’ tag.

Obviously finishing higher up the league will give us more cash (roughly £750,000 per position) but when you consider that a player on £50,000 a week will pick up £2.6 million for the year it kind of puts it into perspective a little. Qualifying for Europe would help all of the above, but the real money is in the Champions League and not the Europa League unfortunately.

One other way to address the situation and allow some room for growth is to cut current expenditure. On this front I am looking solely at high wage earners that don’t offer value for money, like Alan Smith or Xisco for example.

Those two players are on a combined salary of roughly £115,000 a week, which is fine really as our structure will allow that currently. However, I would bet that you could strengthen the squad with three or four players who offer more to the team than they could for the same outlay in wages. The problem is not high earners, not when they are earning it anyway. It’s the high earners who aren’t earning the dollar that are the issue.

It’s just given me some food for thought to be honest. Breaking even is a good thing when it comes to football, but it’s also important that their is a credible plan for growth in place.

But is there a plan in place? That is the question….

About toonsy

A lifelong Newcastle fan and current webmaster of this very 'blog who has the sole aim of creating a place by Newcastle United fans, for Newcastle United fans.

47 thoughts on “How do Newcastle plan to go forward?

  1. Good read Toonsy.

    I think tapping into the asian markets have been excellent for the clubs involved but you need a certain type of player to do this (Beckham, Owen, Shearer) but signing ‘superstars’ seem to be a thing of the past for us. We had a really strong following in Malaysia when we had Shearer I seem to remember.

    If we are following the ‘Arsenal model’ then fair enough, I think the wage structure is reasonable but you also need the scouting network in place to do so and we really don’t have a wealth of options in that department so I reckon a couple more solid scouts would be a must.

    There are loads of different ways to bring in income which we don’t seem to adopt without resorting to ripping the fans off. I saw a DVD of the Arsenal game for £9.99. Shocking. I will just keep MotD sky+ on permanently cheers! Man City have a club supporter shop in Manc airport which I thought was a cracking idea, as it also puts Man Utd’s noses out of joint! Shame Sunderland arent a big enough city to have an airport, we could put one of our shops in there.

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  2. We go forward buy investing the money we recieved from the sale of Carroll. That should be enough to give us a real chance to get into the top 7 next season.

    But for me it is just so important that we keep hold of Barton, Enrique and Tiote. If we don’t keep these we might as well turn the lights off as it’s unlikely we can just keep finding replacements for our better players when they leave.

    I think this summer is really important, not just for the supporters but for Ashley. If we show ambition we can achieve plenty, if we show restraint we may as well get use to being mid table.

    Like someone said on an earlier thread, we’re now on a firm financial footing, so there’s no excuse not to invest on the pitch.

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  3. As a supporter for nearly thirty years going through thick and mostly thin i think at last we may be approaching a strategy that works. maybe in five years time we’ll look back and say well done sir mike ashley as we unveil a statue outside st james’s.

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  4. bigsyallen
    Posted February 24, 2011 at 4:50 PM
    As a supporter for nearly thirty years going through thick and mostly thin i think at last we may be approaching a strategy that works. maybe in five years time we’ll look back and say well done sir mike ashley as we unveil a statue outside st james’s.

    If that happens that will mean we’ve been unbelievably successful and I will be delighted.

    I wouldn’t order the material yet though, although there’ll be a fcking lot needed – might be a reprieve for Corus!

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  5. Now there are many ways to increase expenditure, and it should rise next year anyway due to increased TV money from the Premier League. Growing sponsorship revenue and corporate income is another way of increasing what is coming into the club, and that should happen next year anyway as the team will be able to attract more interest having, hopefully, lost their ‘newly promoted’ tag.
    ——————————————————————————–

    Now,did i read wrongly,or is there a typo in 1st sentence? 😕 😈

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  6. Moreno – Marktoon wants that 4-4 DVD 🙄 😆

    As for the Asian markets…… It doesn’t neccesarily take a big name player to increase the share. I’m pretty sure that if we signed a Far Eastern born player then we would increase our revenue. If it was to be one of their superstars then obviously it would increase.

    It’s actually one of the very few things that me and Chuck agreed on 😕

    Another way to do it is to play pre-season out there.

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  7. I’m surprised the Fat Man hasn’t thought of that already, toonsy.

    He must have plenty of contacts in Taiwan.

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  8. Good article toonsy. I would hope what was said in the statement about ‘Tiote type’ players keeps ticking along nicely, obviously not every player is going to be as good as successful as him but if with Carr’s track record am not going to argue with his judgment.

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  9. Think the only way the club could make more money is to expand the staduim and try get it selling out again.

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  10. Toonsy a lot of good points you make mate, I too believe that Ma must have loads of contacts in Taiwan, maybe he should give all the sweatshop workers free Toon tops see if that would get them following us. 😆
    I say he should go all out to buy that Honda dude 😀

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  11. Aye Dave, Honda had a very good World Cup – I’m sure he was getting linked with Arsenal not long ago.

    Good read Toonsy.

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  12. they say red nose will get 315mil for m/utd over 3yrs if they do close-season tours of japan,so the rags are saying,got to be mis-print 😯 😯

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  13. icedog
    Posted February 24, 2011 at 7:27 PM

    “DAVE sorry sweety,ill sent JB a blue peter from you,will that de”

    Drugs 😯 😯 😯

    😆

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  14. Richie do you not think Ice could do with a few wacky backy smokes to cheer him up tonight as he is starting to sound like some grumpy old git, or maybe we will rename him to IceChuck

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  15. Dave…”a few wacky backy smokes to cheer him up tonight as he is starting to sound like some grumpy old git”……just tonight? 😆

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  16. Hey, there was talk from some of the news writers on Twitter that NUFC was planning a big announcement for today. I cant find anything. Anyone hear anything?

    Did Barton sign? Is the Cisse thing gonna happen? Where are you lads in the airport? lol

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  17. I couldn’t actually find anything on Twitter from any journo’s, so I’m not sure where this has come from.

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  18. Just watched the police inspectors vid re Madeleine McCann http://www.mccannfiles.com/id232.html

    B*stards – fascinating video – 50mins but worth watching.

    To think Ronaldo and Rooney jumped in – using their popularity to find Maddie and help the victim parents – sorry cover up lying profiteering scumbags (imo of course 😉 )

    This is the info they have banned from being broadcast pr published in the UK – and the information in the book that has an injunction against it.

    Worth emailing the link to folks so they can have a more informed view and not donate any more money to them.

    Rooney and Ronaldo were in it so its fair game for a football blog, and I am sure the McCanns have been to Newcastle once, or nearby, or we played a team who live nearby them 😆

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