The mathematician said: “Well it depends upon the beans; Are they all the same size and type?” So wandering off he passed Baldrick who said “A very small stew”. An Engineer suggested that four was the answer, but to check he called an accountant who said “What would you like the answer to be?”
Financial Fair Play is a bit like that, confusing with sub-plots and hidden agendas. First off lets be clear I’m no expert. It was Blaster Bates who described an expert as “Ex as in has-been and spurt as in a drip under pressure”. No on second thoughts maybe I am. Anyway FFP. There are two sets of FFP – UEFA and Premier League.
The European FFP regulations are there to ensure that clubs don’t overspend and hence go bust. OR to make sure that rich owners don’t threaten the status quo. Your choice. This basically says that clubs must break-even. However to give an idea of the complexity it is covered by Chapter 2 in the regulations which is articles 57-68 and several appendixes of which the five pages of Appendix X covers what to take into the Income and Expenditure equation and the five pages of Appendix XI defines the terms used in Appendix X. Even then for the first two years you are allowed to overspend (“notion of acceptable deviation,” article 61) by €45m. These regs have been known about for a few years and what they mean for a club like Newcastle is that we have to be a bit prudent.
The latest figures 2011-12 show that we had an income £93.3m of which £55.6m was media related. And an expenditure of £85.7m of which £64.1m was wages and £21.6m other. So a wages to turnover of 68.7% which is fine. Under normal circumstances that would be near as dammit perfect. We are in profit by £7.6m with an 8.86% return on expenditure. Better than sticking it in the bank. So as far as the UEFA regs are concerned full marks.
Of course if we wanted to be risky/ambitious we could have increased expenditure to £36.6m (€45m) over income – in other words £129.9m. If all this extra had been spent on wages we would have had a wage bill of £108.3m, which would have paid for a few more players (£850kpw extra. New team at £75kpw each) and still been within the regs. We would have a wages to income ratio of 116% but as a one off spend it was an option. It would have restricted us in the following years and so it would have been a gamble. Under the UEFA regs it is still an option. The cost of buying such a team is another matter and finding a way of doing that without it going through the books would be a challenge.
The English FFP regs ate there to ensure that the new TV money stays in the game and does not end up in the pockets of players and worse agents, by inflating wages. There is some interesting stuff on it all here.
Now then, what does it say and what does it mean? It says that clubs can overspend the UEFA break-even rule if the Owner guarantees it with equity. So only if it can’t make the club go bust. This means that smaller clubs not trying for Europe immediately can play catch up.
The second aspect is that the TV money can’t be spent on wages.
To put that money into perspective last season We earned £45.1m from TV, finishing where we did. This year we will receive somewhere between £60m and £100m depending on performance, If we do well we could easily receive say an extra £30m, but we can only spend £4m of it on wages.
So the regs have different impacts for big clubs like us and smaller clubs. In round figures here are the wages spent by each club last year. City £196m; Chelsea £173m; Man Utd £171m; Arsenal £143m; Liverpool £123m; Spurs £91m; Villa £68m; NUFC £68m; Sunderland £63m; Everton £63m; Fulham £63m; Stoke £55m. All of these clubs are affected by the rule. All of these clubs can only spend £4m (£77kpw) of the extra TV money on Wages. Any other increase has to come from elsewhere. So if Sports Direct were to sponsor something for £50m each year (an example before you all fall off your chairs!) that could all go on wages. If not then we are restricted to how much we can grow our wage bill.
All other clubs are exempt from the regulations regarding the wages in theory. Theoretically they could spend as much as they like, but then would be caught in the following years trap. So they are being encouraged to go big this season. Even if they decide to increase spending to “only” £56m then the spending could be :-
West Brom and West Ham both spent £50m last year on wages so that can go up with the TV money by £115kpw. Swansea, Norwich and Southampton all spent £40m last year, so they can increase their wage bill by £16m (£307kpw) this year and that’s another five or more decent players. And guess what they have done this summer. They are being allowed to play catch up. If they truly are exempt from that aspect of the regs then they can spend even more provided they stay within the UEFA regs.
What this means is that historically there are a big three with wages over £170m which will basically be subject to a freeze. Then a gap to the next three which again are effectively frozen. Although Spurs will use the Bale money to increase their wage bill by probably £20-30m as it’s nowt to do with TV money. This means that they have the tools to consolidate their position with Arsenal and Liverpool. There will then be a massive gap from those three above £125m to the rest below £75m. There will be 11 clubs between £75 and £52m with the three promoted clubs given the choice of spending to catch up or protecting their position in case they are relegated.
Last season the gap between West Brom on 49 points in 8th and Sunderland in 17th on 39 points was only 10 points. This season expect it to be closer.
So what options have Newcastle to show the ambition fans call for? Well the obvious option and the most likely one is already being used. Bring players in in January to inflate the wage bill so that the extra £4m has the greatest impact (we brought in five players remember). So that was not necessarily a knee **** reaction to the fear of relegation but shrewd planning depending on how you look at it. Next we have to get rid of anybody who does not have the capacity for growth. Goodbye Perch, Simpson and Harper. Sell high if anybody wants a player or two and reinvest the capital in wages (Cabaye and Debuchy to PSG please). Otherwise only buy when the accounts permit, for example Remy and another striker.
The big problem is that we are now back in the pack financially. Top of it yes, but still in 7-17th place. We could try and increase our spending and still get relegated as QPR who last season spent £86m on wages showed. Good management is better than deep pockets.
The only way that we can increase our football income is by getting into the Champions League The Europa League does not pay. That means spending between £125m and £150m each year on wages to have a one in four chance of getting 4th place. Nobody in their right mind is going to take that gamble. So expect a well managed club aiming to be best of the rest. And expect a new commercial director to boost income off the field to consolidate our position.
Last question before I go. Would you be prepared to pay and extra £1000 per year for your season ticket if it was spent on player wages so that we could compete 4th to 7th on a level playing field?
Now then, clear as mud? This has been a great oversimplification, by someone who is both past it and under pressure. Any questions or comments please feel free to leave them below.
Cracking analysis Prem. 😉
So we should be up with the best of the rest. That would be true if we had decent players and a decent manager. There lies the problem.
The manager is the most important position.
We should have spent more money getting Rafa in when we had the chance.
A top manager can get get average players playing at their peak and that would help us achieve the clubs aims. The best of the rest.
Looks like another long season trying to avoid relegation to me.
Troy Stavers(Quote)
PREM top thread mate
icedog(Quote)
TROY i have to disagree with a couple points,i think we have some very good players mate,if we had all the barca players at our club pardew would bring them down to his tactical level which is nil,plus rafa would not come down to jabba level no budget to work with,i think we have to accept we will remain a 2nd rate club while hes stays here a dam shame for 52thou fans spending their hard earned cash to turn up to suffer it 😥 😥
icedog(Quote)
Great read Prem and clears a few things up ,even for a thick dim wit as me . 😆
Axel(Quote)
Great stuff there Prem. A couple of questions:
So the 30M or so increase in TV money can be used for transfer fees?
Also, can you confirm that the increased TV money is mostly payable after the season as a result of prize money and appearance fees?
Thanks.
MDS(Quote)
Blimey Prem ,I got a headache now 😆 .Seriously though ,very enlightening figures there.
Question .So if West Hams Cash for wages can increase by £115k a week ,we know Carroll will get the Bulk of that sum ,say £80k a week leaving £25k wages for any other new signings is that right?
KIMTOON(Quote)
Good read Prem and thanks for the hard work involved in putting it together.
Onething I will say is that I 100 % believe that the players we brought in last Jan were brought in because of the fear of relegation, Lambastad said as much after saying that they made a mistake in not bringing more players in during the summer and that the Jan signings were to be brought in this summer but they had to bring it forward.
As for bringing in more revenue well if SD had to pay for the coverage they are getting it would bring in a very nice amount of cash, remember aswell the naming rights that Lambastad talked about getting us a top player every year well where is he, because as far as I see we haven’t bought anyone.
Big Dave(Quote)
MDS I know your not asking me but from what I read the increased money is payed out at the end of the season, and the bottom team this year will be guaranteed at lest £60 mil
Big Dave(Quote)
No the £30m cannot be spent on wages, only £4m of that money can be spent on wages. I’m not sure of how the cash flows. I think the equal payments are paid up front the appearance moneys as and when, whilst the merit payment at the end of the season, but I don’t know.
I think the 5 players signed in January were earmarked for this summer, I think that pre-contract agreements were in place for some of them. A decision was made to bring that forward and the motivators for that decision would have included the threat of relegation. It also may have included a bit of foresight.
Premandup(Quote)
Ice
From my observations, the players are average. I understand your point about Pardew but if you are playing Shola, Sammy, Debuchy, Santon, Anita, Goofy then you can’t expect good things.
Cisse never had one pass to him in the 18 yd box.
The players are average and it’s more evident by the game.
There’s a major problem which many of us predicted. Players will not want to stay and play for us if we show no ambition.
We have one of the most influential players in Cabaye who wants away and it’s an impossibility for that not to affect the dressing room morale and particularly the French players and we’ve gambled on buying a considerable amount of them despite the obvious risks.
Absolute shambles.
Troy Stavers(Quote)
Another point is that since MA no longer owns SD it is not in his gift to sponsor NUFC the way we would like him to. Remember he is not paid by SD and his bonuses are currently frozen.
Looking at the figures it is important to recognise we are probably the best run club in the premiership. Not the most ambitious, but as Troy says. Best of the rest and I expect that to be reflected on the field with a top 10 finish, ideally 7th or 8th
Premandup(Quote)
Great read Prem, interesting stuff, I agree with Dave though about bringing the players in to avoid relegation, if anything Ashley would have preferred their “shrewd planning” to have kept the wage limits lower ad not increase it imo.
Kim…I guess as West Ham paid all of AC’s wages last year when he was on loan then his salary will already have been included in last years figures, plus he’ll have taken a pay cut when he joined so that will have freed up even more cash for other players wages….I think 😕
richietoon(Quote)
Also as the regs read West Ham are exempt from the regs and can hence spend what they like. If the go above £56m to say £125m then they will be caught by the regs next season. That’s £52m this summer, £56m next summer etc.
Premandup(Quote)
In the article I gave fiures on the basis that they merely play catch up to £56m ready for next summer.
Premandup(Quote)
Ah right(ref WHUFC) I’ll shut up then, they don’t call me “Mr Thick Black Thick Adder Thicky” for nowt you know
richietoon(Quote)
Ritchie so long as you recognise that that is your interpretation and don’t try and beat up Ashley for behaving in accordance with you pessimism that’s fine by me.
Premandup(Quote)
No Ritchie I agree with your comments re WHam. & AC you may even be right. enjoy, it doesn’t happen often
Premandup(Quote)
Preman..As I said just my opinion, don’t know if it’s right or wrong, only the men at the top know for sure 😉
Ref AC…woo hooooo I’m right, well possibly but that’s good enough for me
richietoon(Quote)
Prem do you honestly believe that if we were setting safe in the top 10 last Jan we would have brought players in ?
Big Dave(Quote)
right away to pick the wife up be back in 10
Big Dave(Quote)
Haven’t got a clue Dave. What I see is they did the right thing from the FFP regs. So I’m giving credit where due. It may be serendipitous and they may or may not have done it anyway. I don’t think they were planning it six months earlier. I’m sure the fear of relegation was a major factor. Not sure it was the only one.
Must be a great article it that’s the only quibble 😆
Premandup(Quote)
Prem &Richie ,thanks for clarifying .It’s just that they have spent £21.700m on new arrivals and got back £8.140m on departures . That’s 5 newbies so must be a fair bit of wages on that lot.
KIMTOON(Quote)
Hi Kim it sounds like they are playing catch-up knowing they don’t have to buy a new stadium. 👿 Don’t think they are being stupid however.
Premandup(Quote)
Cheers for the answers lads…
MDS(Quote)
Prem ,So how do Spuds get around the no more than £4m rule then ,as they have brought loads of expensive players in ,or does Bales sale cover that? ,sorry I know I’m proper thick like 😆
KIMTOON(Quote)
Kim. I’m guessing that they get round the £4m because the Bale money is not TV money.
Premandup(Quote)
TROY@10 think you mean they are playing less than ave,have watched a number of them quite a lot all be it at their last club and they played v well,they played quite well when they first came and had to find there feet,but pardew soon put a stop to that trying to fit his fav around them,square pegs in round holes,the man is a arsehole
icedog(Quote)
Off topic but Ba not anywhere near Chelsea team tonight , take note mr Cabaye ,things don’t always pan out the way you wish. 😉
KIMTOON(Quote)
Prem ,that’s what I figured ,cheers.
KIMTOON(Quote)
Prem – thank you for this mate. I know you’ve just cut and paste it but its appreciated 😉 😆
So basically at the end of last season most of us thought we needed maybe 4-6 players added to the squad to proved that depth. That would have been a couple of CFs, a wide left and a replacement for Simmo and selling and replacing the likes of Willo. The type of adding and reshuffling the likes of Norwich and Swansea have done for example.
With the TV money and that ability to increase expenditure to 36.6m we could and should be making those improvements to our squad.
Now I’m not suggesting we should have spent all the TV money or take the wages to the max, but had we been in a possession to strike and a plan in place surely it could have been done.
Pardew would have sat down with his coaches, Carr, DL and Lee Chamley to discuss who he is happy to keep in his squad, who needs replacing and where they want to strengthen – and potential targets.
The only person replaced in that counsel was DL for JFK as we all well know. So I truely don’t understand why 1) that wasn’t done sooner if it was in MAs mind, and 2) why everything seemed to stop just for JFK – which suggests to me he DOES have the final say.
Their were players available on a free or low fee that would not have demanded a high wage that would have improved our squad – but we didnt go for them. Either because we weren’t ready when the window opened (coz of JFK appointment) or because we are very naive and the people we have in those roles either don’t have their eye on the ball or have had restrictions placed on them from the board.
Sharpy17(Quote)
Prem ,so we really do need to off load Cabs just to inject some fresh blood into our team. Please PSG make us an offer for Cabs and Debuchy 😉
KIMTOON(Quote)
Kim not necessarily. I’m sure if we wanted to the Wonga money etc could be used to get in the extra players we need. Any good accountant could ensure we get the players we need. The FFP regs provide a framework, that’s all. If we wanted to we could do more. We could loan the money FFS style and stay within the European overspend limits and buy the players we want, however we appear to have chosen a strategy which is admirable for it’s prudence and we are not buying established star.
Premandup(Quote)
Prem – do me a favour mate, just clarify the following for me please, coz I read it that could increase the wage bill (at a risk).
Of course if we wanted to be risky/ambitious we could have increased expenditure to £36.6m (€45m) over income – in other words £129.9m. If all this extra had been spent on wages we would have had a wage bill of £108.3m, which would have paid for a few more players (£850kpw extra. New team at £75kpw each) and still been within the regs.
Sharpy17(Quote)
Prem that was the main point I had to make, and that I think the club should be bringing in a lot more money, but sure who is going to be doing that now as it was Lambastads job ? come to think of it we dont even have a chairman now or is that JFK aswell 😆
Big Dave(Quote)
Dave, no as far as I know we don’t have a commercial manager and personally IMHO Llambias was charged with dramatically increasing the commercial revenue, failed and hence was sacked.
Sharpy I have not done an analysis as to the most we could do within the regs, because that is not what I perceive to be the objective of the Owner,. I believe we could do a lot more. What we appear to be doing is trying to consolidate our position as best of the rest and relying on incompetence elsewhere to achieve the occasional European outing.
Premandup(Quote)
News breaking here in Holland that Finbogasson from Heerenveen is in talks with Cardiff city FFS , the guy is a goal machine ,even his trainer said a while back he is good enough to develop in to the sort of player that he was . His trainer is a certain Marco Van Basten and the lad will be that good . what the **** is our scouts doing only scouting France . My blood will boil over if he goes to Cardiff and we have not even scouted him . 😈 😈 😈 😈
Axel(Quote)
Alex Pearce (Reading) was available on a free transfer at the end of last season and for me would have been a good replacement for Willo.
Andreas Weimann (Villa) was available on a free transfer at the end of last season and could have either been one of the 2 forwards we brought in, or replace Obertan who I don’t believe has much of a future with us.
Arouna Kone (Wigan) went to Everton for £6m (which to me isn’t ridiculous) but is 29yrs and out of our recruitment policy.
Nathan Redmond (Bham) went to Norwich for around £2.5m and would place Obertan for me.
Franco Di Santo (Wigan) was a free transfer and in my own opinion would replace Shola for me. He ain’t brilliant but he’s younger and wages would be less.
Scott Sinclair (Man City) went to WBA on loan for around £2m, which we could have. But also I think City wanted around £5m fee.
Tom Ince (Blackpool) is available for around £8m and wouldn’t be on a huge wage – maybe around 30k pw.
These are just afew examples of players that have moved or renewed contracts with their clubs that IMO could have improved our squad.
If we are struggling with the wage bill though, I also can’t work out why the hell we are no actively looking to move players like Gosling, Obertan, Willo, Shola then Amalfitano, and other players who they don’t see having a future or playing much of a role – get rid!.
If we can or won’t buy, then move players on so the funds and space is there when the right player at the right price comes up.
Sharpy17(Quote)
Axel@36 ,That’s not good mate if true . Really hacks me off that our targets all hail from France ,there ARE other countries ffs. 👿
KIMTOON(Quote)
http://nothingbutnewcastle.com/2013/08/blogs/newcastle-could-do-worse-than-involve-tottenham-in-swap-deal
didn’t Cabs have a sulk on cause a move from us to Spuds was blocked last minute in jan or something 😕 just a thought.
KIMTOON(Quote)
Axel – we should definately be looking at that type of player. He is probably more ‘signable’ (if that’s even a word) than the likes of Ayew and Gomis as well.
He already leading scorer this season as well I think isn’t he?.
Prem – just reading that makes my ******* blood boil!. I completely agree though. I think he’ll do the bare minimum and hope it works out.
But IMO if that’s going to be his approach, he needs a manager who can get the absolute most out of the players we do have. If he isn’t going to improve the playing staff, then IMO he needs to improve his manager and coaching staff.
That’s a point mate. Do those figures cover manager and coaches wages as well or is it just playing staff do you know?.
Sharpy17(Quote)
My guess would be that it covers ground staff as well, but the wages are far smaller than the player wages
Premandup(Quote)
Kim – Defoe and Townsend or Lennon for Cabaye and £5m and deal done 😉
Sharpy17(Quote)
Just been reading Finbogasson had a move to celtic fall through because they offered 2.5 million euros a german club offered 4.5 million Herenveen want 10 million euros . Is that not the price we offered for Gomis ffs this lad is twice the player that Gomis is
Axel(Quote)
Axel ,Once again if true we have to go in for him ,seen him mentioned on a couple of sites now ,he is highly rated.
KIMTOON(Quote)
Sharpy @42 ,Yep ,I would love us to get Defoe for sure ,Townsend too
KIMTOON(Quote)
Axel – totally agree. The lads goal scoring record speaks for itself 30 in 35 games according to wiki.
He’s 24 and not only would he probably demand less wages than Gomis but he’d probably have alot fewer agents wanting a slice.
Sharpy17(Quote)
Any last questions before I head off to my pit?
Premandup(Quote)
SHARPY 30 in 35 is just about right ,i really am doubting the scouting skills of Carr . I reckon he only has contacts in France ,that can be the only reason we are so obsessed with France these days .
Axel(Quote)
Prem – you get your head down mate, but sleep well buddy coz I’m sure there will be more tomorrow 😉 thanks again buddy 😉
Sharpy17(Quote)
G’night folks, sweet dreams. Maybe a trip to Wem-Ber-Ley 😕
Premandup(Quote)
Kim – would you take Adebayor if they offered him?. I personally wouldn’t fancy him at all and it would be one sulk out another in IMO.
Axel – when we got tiote and Anita and were looking at the likes of Douglas and Luuk De Jong I thought we were about to start picking up quality from that league as well before moving on to Belgium and other leagues. But I now think you may have a point. I could understand it if we were having great success in securing quality players from that league but all we seem to be doing is pissing French football presidents off
Sharpy17(Quote)
Sharpy ,Nah not him ,prefer Defoe and Townsend .Nee chance though ,don’t see anyone coming in now it’s getting too late. Reckon Cabs will go very close to deadline and we won’t replace him or Ba imo.
KIMTOON(Quote)
Night Prem ,and thanks for the article .
KIMTOON(Quote)
SHARPY17 @37
‘ I also can’t work out why the hell we are no actively looking to move players like Gosling, Obertan, Willo, Shola then Amalfitano’
I think the trouble is, getting rid of those players will not have much of an effect on the wage bill. Certainly Gosling, Willo & Amalfitano will be relatively very little. (Compared to the amounts taken up by the likes of Colloccini & Remy) If we get rid of those players, and who’s to say anybody wants them/ they are sitting on contracts, then who comes on after a few injuries, we are down to under-21 players from the stiffs. I don’t think Shola is good enough (for the premier league) but who could we get in for the same wages that would be better? Any decent striker would not sign for Shola’s wages. So I can see why we need to make a saving elsewhere ie. Cabaye off the wage bill and a striker on. And I think we cross our fingers and toes that Anita can play like that every week.
DJG(Quote)
DJG Anita can play like that every week ,but he needs a run in the side to prove it and Pardew favours Tiote above him every time . That needs changed for me when cabs goes and it should be Sissoko ,Anita, Marveaux , Bigi and Tiote in that order in the picking order . Well i am off too bed good night lads and lasses
Axel(Quote)
AXEL
I have no doubts about Anitas technical ability. He is vastly superior to Tiote IMO, certainly with the ball. The only thing I worry about is his diminutive size and the physical requirements of this league. Pardew needs to stop picking Tiote ahead of him I agree, people say he can’t tackle but how many stupid free-kicks does he give away on the edge of the box compared to Tiote, and how many cards does he get compared to Tiote? Also Pardew would play Jonas if he could but look at the chances we had down the left without him. Sammy is a wildcard / hopeful prospect at best IMO but look at the players he beat and crosses he put in from the left compared to Guttierez. Pardew HAS to stop making Guttierez first choice this season he was a good players for the club but is well past it now (as a winger).
DJG(Quote)
Kim – I’d take Sigurdsson from Spuds with Defoe.
DJG – how often did any of those players feature last season with injuries and Europe. Willo and Oba maybe the most but I don’t think they will feature at all this season if Pardew can help it.
If you get rid of all of them and it only frees up 40 to 50k a week it’s better than nowt and I’d rather get one player in on 40k who will player than have 4 getting paid for doing sod all.
If Pardew doesn’t rate them then I’d rather turn to the young uns and give them the opportunity to be honest with you mate.
Regarding Shola. I reckon the lad Axel is talking about Finbogasson would take Sholas wage. Bet he’s not on a load where he is.
As I say, Franco Di Santo would have replaced Shola on a free for me. He ain’t world class but he could do more than Shola IMO.
Sharpy17(Quote)
Axel/DJG – I have read on a couple of other sites them slagging Anita off for playing the ‘safe pass’ at the weekend?!
How is that a bad thing FFS like?!. If we retain the ball surely that’s a good thing isn’t it?!.
I thought the kid looked very good in there and I don’t think the physical thing is an issue.
Players like Leon Britton and Leon Osman have got by and become important players for their clubs.
Whether Cabaye stays or goes I’d be happier with Anita in the team ahead of Jonas and Tiote every week.
Sharpy17(Quote)
Bedtime for me peeps, speak again in the morning. Sleep well all 😉
Sharpy17(Quote)
SHARPY17
I would prefer we got rid of Guttierez for £40k a week and kept all of those players to be honest, we need squad players, a 4th choice CB etc. I can’t see Pardew getting rid of Obertan because he is one of ‘his’ few signings for £3M from Man U (I don’t think Carr wanted him) and it would basically be an admission of failure, so I can’t see that happening. 🙂
DJG(Quote)
Pardew tried Shola to provide the chances for Cisse in a 4-4-2 to start with against W’Ham but it didn’t work and Shola just ended up in a shoving match with Collins (who had the game plan sussed). Pardew needs to think outside the box a bit in my opinion. Against Fulham, if he tries this again just substitute Collins for Brede Hangeland (who is a giant). I would like to see us try and play football and I think these players in this formation could be awesome if given the time to learn each others movements and passing.
——————Cisse———————
Sammy———Marv————-HBA-
———–Sissoko–Anita—————-
Santon—Colo—-Yanga—-Debuchy
——————-Krul————————
DJG(Quote)
Great read Prem, as per usual mate 😉
Aussie Magpie Fan(Quote)
It seems as if there’s a soft wage cap in place. Soft because you are free to go over it if you have the commercial income to cover anything in excess of the cap, or your owner is willing to spend his/her own money, or maybe give an interest free loan to the club.
But why are the rules a problem for us? I can sort of see it, but not quite.
For instance, let’s use the figures in the article, presume the tv deal is indeed worth around the 60m mark and do away with decimal points for ease of use:
Income now becomes 153m (93m from the article + 60m tv money)
We don’t use any tv money on wages (because we can’t).
We increase the wage bill to the level of our income, ie, 93m. (which is totally acceptable under the rules)
Therefore expenditure rises to 114m.
We are still in profit to nigh on 40 million quid, and the ratio of wages to income is reduced to 60%.
Thus there is 40m to spend on players and leeway for a 29m increase in the wage bill.
And for every million not spent on wages, there’s an extra million to the bottom line. If each player brought in costs 4m a year in wages, I’d say there’s room for 3 or 4 decent sized signings and we’d still run at a profit greater than the one mentioned in the article.
The next season might be a bit trickier, though, especially if we get relegated.
brisvegas(Quote)
Get French Football @GFN_France 5h
Huge news: L’Equipe will report tomorrow that PSG are going to renter the race for Yohan Cabaye because close to ridding loads of CM’s. #PSG
Get French Football @GFN_France 4h
L’Equipe (tomorrow’s edition): Newcastle will refuse to sell Yohan Cabaye to Arsenal at all they claim. #NUFC #AFC #PSG
Get French Football @GFN_France 4h
So PSG back in for Cabaye, Newcastle will refuse to sell player to Arsenal no matter what according to tomorrow’s @lequipe. #PSG #AFC #NUFC
M(Quote)
Nice idea Bris except we earned £45m from TV this year so the increase would be to £93 + £15m = say £110m take away say £25m costs that would leave £85m on wages. Reality is the figures in the article are from the year we finished 5th, Last year we will have earned less from TV so income less etc. However that is probably only a minor adjustment.
Getting relegated is not a good idea. Last season would have been worse though.
Premandup(Quote)
@Bris
I thought you were winding us up there. 😯
Wow! An extra £60m on top of last seasons TV revenue. 😯 😆
Howay fella! There would be people on here demanding we sign Bale if we got that much more. 😆
The amount works out a minimum of £20m extra on TV revenue Last year the bottom club got £40m. This year they get £60m.
Begas, you stick to formations and Aussie you stick to bashing the Ute. 😆
Troy Stavers(Quote)
Will do Troy 😉 ….. oh, I showed the missus your twitter picture and she said you looked like Reg Hollis from the Bill TV series 😆 😆 😆
Aussie Magpie Fan(Quote)
@Aussie
Have you not seen my video of me sleeping in the cupboard on holiday?
Go on YouTube and type Troy sleeps in cupboard again!!!!! Part 1 & Part 2.
It will have to be the UK YouTube of course.
Fizzin! 😡
Troy Stavers(Quote)
Troy, I have searched for it every day in your absence, finally it is available, yippee 😯 😛
Aussie Magpie Fan(Quote)
M… I’d be surprised if they’d say they’ll refuse to sell to Arsenal(at least publicly anyway), if as it appears that Cabaye wants to go he will as the only alternative would be to keep an unhappy player which Ashley won’t do as he’d rather have the cash, therefore to get the highest amount possible he’ll need to keep Arsenal in the running so he can play them and PSG against each other and hopefully drive the price up imo.
richietoon(Quote)
@Aussie
http://youtu.be/5YGHtkoaA2E. Part 1
http://youtu.be/ygdA3XB1p4c. Part 2
Troy Stavers(Quote)
well that was 58 seconds of my life that I will never get back!! 😥 nice gut 😆
Aussie Magpie Fan(Quote)
do you have one with english sub titles?
Aussie Magpie Fan(Quote)
The gut was 12 days of eating and drinking as much as I could. I was a 30 inch waist at the start of the holiday. 😆
Troy Stavers(Quote)
30 inch my ****! Dream on chubby 😛
Aussie Magpie Fan(Quote)