Cash is king!

toonsy

Money money money...
Most of us have enough life experience to know that if you want to buy something then the cheapest way of doing it is generally by paying cash up front.

It works in most formats. You want a new TV and you can buy it for say £400 cash, or you can spread the cost into handy regular payments for your ease. The only problem with that is that when you come to the end of the agreement and you work out just how much you’ve paid back you can bet your bottom dollar that you would have paid much much more than the £400 it would have cost in the first place.

It happens with cars, houses, anything that you want to spread the payment of actually. Believe it or not it also happens when it comes to football transfers.

Quite often these day clubs spread their money and pay for a player over x amount of years. It’s part of the reason why clubs are in such a mess and has assisted the boom years and inflated transfer fees that we see in virtually every transfer window.

We used to do it at Newcastle which is why, in some cases, we were still paying for players that had long since left the club. Either that or the money owed was repaid out of the transfer fee that we got for selling a player. I’m not making that up – it’s all in the accounts.

Now I know figures aren’t everyones cup of tea, unless you’re Ryan Giggs and the figure is Imogen Thomas in which case I’m fairly certain that he’d enjoy drinking out of her cup – allegedly. Anyway, figures aren’t for everyone so I won’t bore you with them.

Newcastle have changed their approach in recent years though, mainly because they had to. Right now we don’t do credit and we deal in cash only. This can be both a help and a hindrance though as suddenly our pool of money doesn’t go as far, although on the flipside it doesn’t take as much money to land a particular player if we pay up front for them.

Clubs that we deal with won’t be used to that after the way things have gone in the last decade or so, maybe longer, so in some cases it will be to the benefit of the selling club to accept the cash up front. It’s deal done for them and they can go away and spend a lump some rather than having to budget for extra payments over the next few years. They could even split it down again and stretch it further by purchasing players on the instalment plan and using the money we paid for one player up front to buy two or three over a few years.

Hopefully this will stand us in good stead when it comes to player recruitment over the summer. I’m sure a lump sum now would appeal to clubs over a slightly higher fee received over a number of years. Think about it…… Sell your car now for £750 or sell it for £250 over four years. What would you choose? I’d choose the former as I’d spunk the wedge on a deposit for a better model!

If there is one thing that Newcastle are at the moment it is that they are cash rich after the sale of Andy Carroll. Obviously, as highlighted earlier, paying up front will mean the cash pot whittles down quicker than what it would if we paid by instalments, but it also means that we would probably be the preferred choice of any selling club.

In theory, cash should be king!

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.

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109 thoughts on “Cash is king!”

  1. so can you confirm that NUFC has no outstanding debt, except that which we owe to Ashley? Because I was under the impression that we have £20M still owing to Barclays.
    Are all our players now bought and paid for?

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  3. Ahh, reminds me of accounting.
    If the cabaye deal comes off it will fit in with my pardew playing 4-2-3-1 from the barton article with cabaye instead of nolan beside tiote.
    Can i just say on twitter i Like how all the tipsters are now suggesting we’ve signed cabaye after it’s already been in french papers and is in ours today. None of them have a clue but the rumours keep things interesting.

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  5. Agreed Toonsy and it’s to our advantage.

    Barnetta back on the radar, and add Karl Henry? 😯
    Barton to everton for 4 mil is picking up steam.

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  6. Thats probably the only club he would like to go to.
    Well good luck to him if he goes. He owes us nowt anymore after the way he has been tret.

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  9. Did we go offline again? I don’t know as I was at work…. Seems to be every Saturday though 😕

    And BB, who mentioned debt? Its irrelevant. This is about us paying cold hard cash up front for players and how it can be to our benefit.

    Busting to see what the Sunday Sun have in store 😆

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  11. Oh it was just a question I had for someone who knows all about the accounts at NUFC.
    I know nothing 😯

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  13. Toonsy – aye – my favourite ever player. Cabaye is just the box to box player that we’ve lacked since Dyer. If its cut and dried he’ll fit in well

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  15. Only worry I have about cabaye is he doesn’t have the best work rate and isn’t exactly a player that gets stuck in… But at 5 mil you can’t go wrong with his skill set.

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  17. I think that if Cabaye has been persuaded by Ben Arfa to come to us then I see that as a good thing. Really would like this deal to be confirmed now and we aren’t having to spend too much on him.

    Mirror is linking us with David Bentley as well, what are people’s thoughts on him? I’m not sure if I want him here, didn’t do well with Birmingham and he was rumoured to have a row with Mcleish

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  19. JG – sometimes that comes with being at a club for too many years.
    The move might do him the world of good mate.

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  20. We have been Lookin at cabaye for some time now.
    No thanks on bently, looks more like an Opel these days….

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  22. BB I don’t think it was a lack of commitment, it’s just how he plays.

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  23. BB – aye – i wouldnt swap those memories even for Messi. Ta for cheering me up pal :mrgreen:

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  25. If the Sunday sun had some amazing article wouldn’t it be out by now?

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  26. Never trust what Pardew says;

    METRO SPORT REPORTER – 14th March, 2011

    Joey Barton can have six more years playing at the highest level, if he stays at Newcastle, his manager Alan Pardew has claimed . 
    Barton has yet to sign a new contract at Newcastle with negotiations believed to have stalled in the wake of Andy Carroll’s £35million transfer to Liverpool on the final day of the January transfer window.
    Pardew though believes his good relationship with the temperamental midfielder should help Barton in choosing to stay at Newcastle.
    ‘I have had a great relationship here with Joey. He’s got four or five years, maybe six, still left at the very top, and if he stays in the space he’s in now he will have a successful period,’ Pardew told the Evening Chronicle.

    Alan Pardew insists Newcastle will not sell striker Andy Carroll amid reports Tottenham are lining up a £20million move.
    Harry Redknapp is on the lookout for a forward and there are widespread rumours his number one target is the Toon star.
    But Pardew has no doubt the 21-year-old, who already has 10 goals to his name this season, will remain at St James’ Park.
    “
    We have to have a big-club mentality and hold on to our best players
    “Andy’s career path is here,” said the Magpies manager. “He just has to keep working hard. We have to have a big-club mentality and hold on to our best players.
    “It does get boring but it is not going to stop – it will never stop. It will not stop simply because he’s a talent and that happens at the big clubs.
    “It just goes to show you his value at the moment. Andy just has to keep doing what he does best.
    “He has already proved that playing for Newcastle United will not hinder his international career, so why does he need to go?  He loves it here and loves the fans – long may it continue.”

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  28. ‘I have had a great relationship here with Joey. He’s got four or five years, maybe six, still left at the very top, and if he stays in the space he’s in now he will have a successful period,’ Pardew told the Evening Chronicle.

    Hmmm? So let’s offer him a 2 yr contract. 😥

    Genius! 😯

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  30. Newcastle are ready to sign Swiss midfielder Tranquillo Barnetta

    sunday express

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  37. Premandup…Tranquillo Barnetta…now thats a good signing from Leverkusen….wish we could get his mukka Derdyok (spelling) and Arturo Vidal but they are probably going to FC Bayern… But Barnetta…yes please… 😆

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  38. Let’s bury our heads in the sand and yawn even louder. 🙄

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  39. It’s the manager and club working in sync. They are genius! 😆 😆

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  40. Hold your hats lads.
    Gervinho signing is rumored to be the big news today 😯
    If we pull it off…. Well let’s just see what happens…

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  41. Gervinho would be a brilliant signing, Apparentley the club are expecting a decision from him today. Fingers crossed 🙂

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  42. no heads buried in any sand here ……yawn……but there is another anti-Pardew blog kicking about…yawn…..yawn…

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  43. But Gervinho has already said he wont make a decision until after intl match next weekend.

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  44. bsn9- Pardew wants to keep Barton, he wants to give him a new deal. but he’s not the man who decides.

    As for Carroll, he also wanted to keep him, Carroll ASKED TO F*CKING GO.

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  45. BB aye but maybe the offer put forward is too good to let slip by. We’ll see…

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  46. Josh-NUFC it would be great if the pieces of the jigsaw started falling into place before the last week of the transfer window as traditionally happens…fingers crossed regarding Gervinho…

    Looks as if the rumour mill is picking up regarding JB too. Pity really….but it seems as if the bridges have been burned with JB and Ashley…maybe they kiss and make up, would be great if they did…

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  48. MM think that bridge has been on fire for a while now unfortunately. I’ll be gutted if/when he goes 🙁

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  49. Have any of you lucky chaps read the Sunday Sun today…what’s the crack then ?

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  50. Hey Starbob, you are obviously protecting your fragile little self from disappointment but I implore you to be brave.. i know you are fearing the worst but you have to face the unknown at some stage.. You have built your little walls and you are happy to dwell within them and to mock anyone that actually has a positive view on Newcastle FC. I fear that you will still be disappointed if we do indeed sign Gervinho and Co… You will find something to whinge about… it is in you miserable nature..

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  51. @jobey

    Thanks for explaining that. Looks like you miss the point tho. 🙄

    Pardew says one thing to the fans and the club totally do the opposite.

    Genius. 😛

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  52. Bobby the sad fact is thats just the way it is under Ashley, we have seen it time and time again.

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  53. JerseyGeordie@48…I agree, would be a real pity to see him go. JB along side the names being touted in the press would be immense, hope they can reach an agreement.

    I think the bladdering of CH got JB a bit bent out of shape, and I can understand if JB had something to say about it to the management, I mean he claims to wear his heart on his sleeve and all that…

    But it’s standard crack, don’t bite the hand that feeds you, and if they cannot longer see eye to eye then it’s all finished anyway…someone has to back down………we’re talking big bucks here after all…

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  56. Cabaye agreed, Gervinho looking likely and also still in for Gameiro. Not after Larsson or Danny Graham.

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  57. Lets not forget that Staylor was transfer listed and looked to be well and truly gone,.. He ended up signing on and hasn’t looked back… who knows, the same might happen with JB… One thing is for sure… the club will not be held to ransom…

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  58. Personally I like the positive swing being pushed out by the rumour mill at the moment, and the players we’re being linked with will undoubtedly excite the fans. We just need to see who comes in, cos at the moment it’s all speculation.

    My bugbear is waiting until the last minute of the transfer window and scuttling round for players. It seems as if we’re being more pro-active and trying to get blokes signed upo earlier. Not sure if we can give players “sign up or get lost” ultimatums, but if we shake enough wedge under there noses they might jump at the chance…I mean, we aren’t in the Champions League, but surely we have just as good perspective for the new season as any team outside the top five, we must still be an attractive proposition even discounting the fact that we have may have a **** load of “Andy Carroll” money to get rid of… 😉

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  59. Spot on article Sy – paying cash up front is a massive advantage and that’s why we are in with a good chance of landing Gameiro. Valencia are broke and will have difficulty matching our cash offer

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  60. Jobey07@54……..there are a bunch of WUM’s about mate…keep cool, we know the truth… 😆

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  63. MM and Aussie, the thing that makes me feel it’s over is barton saying he’s hoping for new owners. That to me says he’s not going to able or allowed to work with ash.

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  64. AussieMagFan@57….spot on mate….maybe JB has a change of heart when he sees the kind of players we are “trying” to sign…it would be great if he signed up, cos I think he is a great player…

    If he doesn’t sign, we can use his salary elsewhere on players who want to play for the club…

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  65. 3Hrs – PSG have said they will match our offer tho, so we may have to up the ante. Although that might not be a cash offer like wors :mrgreen:

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  67. 3hourswasted…thanks for the Sunday Sun article mate…..looks like a done deal…will still be happy when he’s photoed in the stripes…

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  68. I can see what u r saying JG but I reckon Joey may stay… I can’t see Everton forking out too much for him… I reckon Joey might be in for a shock with the lack of money and interest out there…

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  69. BB also psg may not be able to match our wages and or Gameiro may want a better challenge than ligue 1.

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  71. Interesting point to all of this is that perhaps HBA and our French speaking player(s) are having a big influence on things at the club. HBA has often stated that he has tremendous gratitude for the way the club conducted themselves as they were fighting to sign him…or nick him on the cheap…from OM, the same during his long injury break. This is maybe being communicated to our potential French signings, they need to know that we are a “caring club”… 😈

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  72. Aussie, I think there is a strong chance he’ll stay as well. But it will probably be only for 1 more year. 🙁
    Prolly a mix between seeing out his time at the place he wants to be (toon) and putting two fingers up to Ashley and not let him be rid/cash in on him.

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  73. MM let’s hope they can’t speak English then and don’t talk to any of the Brits 😛

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  74. JerseyGeordie@63….you need to be a bit on the radged side to slag off the bloke who is paying your cheques, no matter how much you think of yourself….

    At the end of the day, you either buy into the club, or you’re out. I think JB is maybe frustrated cos he probably feels he aint gonna get into the England line up, and he aint getting any younger. I can also understand if he has fallen out with persons at the club, I mean he has every right in the world when we see the madness which has taken place over the last years…

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