We still haven’t spent the £35m…

Money money money...
Is the sound coming from some corners of the NUFC fan fraternity.

When I initially heard in February that the Carroll money was going to be reinvested in the team it caused me to reminisce to the time when I was 6 years old and my Grandad (RIP) gave me £5 one day out in town.

I’d never had such a massive amount of money and I was made up. It burned a massive hole in my pocket and although I can’t remember what it was I did buy, you can be almost guaranteed that it was a load of rubbish and that all of it was gone that day.

The Carroll money has split the community, while it also has caused (at least for me) split thoughts, initially I indulged in my inner child, we could get N’Zogbia back but really in hindsight, is it really worth the risk of getting a player back who caused so much unrest and jumped ship with the most feeble of excuses before the ship sunk?

Of course he may have matured as a player since that episode and as a person but he isn’t a player that will hit the ground running in terms of fan support and how will the likes of Joey Barton take to him, in light of his comments following the thumping we received at Leyton Orient… granted the Zog wasn’t there but N’Zogbia clearly has a chequered history with us. A common saying is never go back if it didn’t work the first time, look what happened with Kevin Keegan as a prime example.

However I digress from the main reason that prompted me to write this post…

My main thoughts now really concern the £35m that will be reinvested. There seems to be a few misinformed people online who think that we will spend £35m on players. Some even think that we will spend the £35m + the £15m that was earmarked as a summer budget. These are fair enough assumptions, however, I believe there is more to it…

A footballer costs a lot of money for a club these days. It’s a bit like going into your local car showroom and buying a new car, but it isn’t really as simple as that. Say I was left £35k in a will and decided to splash out on a new motor, I can budget pretty close to the £35k as all I need to get is insurance and make sure it is taxed.

If I apply the same analogy to buying a footballer for Newcastle United, I would have to factor in the following:

1. The transfer fee – The most obvious and most publicised cost when buying a player.
2. Signing on fee – The fee a player demands when he signs on, a player on a free transfer will tend to ask for a larger signing on fee.
3. Wages – For the purpose of accounting, wages have to be considered when buying a player. I believe that the players increased first years wages are factored into the accounts. Tiote’s new contract was taken from the “Carroll money”.
4. Agent fees – Less said about these guys the better. Luke Edwards claims on Twitter that the signing on fee and agent fee for Demba Ba was £2m.
5. Insurance – In football, players get injured a lot and as such the insurance premiums to cover their wages is quite costly.

Newcastle is “allegedly” trying to get itself back into the black having been mismanaged and bled dry by Mr Shepherd. The club was running at a severe loss but at least the club are trying to remedy this. I think Ashley is trying to stop having to put more of his own money into the club and I think we all want to see that, after all, the more money he puts in, the more he will want back when he does eventually sell up.

The unexpected windfall in January means that we can more easily live within our means for now and won’t all go for transfer fees. I haven’t considered that we have upgraded the training facilities and lets not forget that there is the January transfer window that a pot will need to be retained for.

For those who say that the Nolan fee has paid for Cabaye and we haven’t spent anything else, consider the hidden costs that these players come with. It isn’t as cut and dried as “use some of the ticket money”. I don’t expect us to spend any more than £12-15m this summer, a far cry from £35m, but I hope that you can see why I believe we will spend £15m and still have invested the money into the team.

Long gone are the days when Newcastle could open the chequebook up and splash £17m for a Michael Owen. The finances of football are changing over the next year and although I suffer a little from the green eyed monster when I glance over towards Eastlands and Stamford Bridge those days will be coming to an end and to be honest I would take more pride in a team of pacey, young, hungry players with a good bit
of skill that we developed rather than going out and buying the finished article. Shooting from the hip and saying Ashley will pocket the £35m and put it on black at the casino is not the way to think about these things either.

I have been happy with how the club have conducted themselves in the transfer window; no player is bigger than the club and proved evident when Nolan left to join West Ham for more money. It is good that the club have shaken off the mantle of a last big payday. The players that have come here have ambition and desire and isn’t that all we want?

It is only a few days into the transfer window proper, and there is still a full two months left. As fans there is very little we can do apart from get behind the players that come in. We can voice or disapproval if things go pear-shaped, but the transfer window has gone extremely well so far, the squad is stronger than last year and I feel the club will have learned lessons from the January transfer window, which is why we have done so well so far.

I hope to see more of the same!

Thanks to BrownRob for submtting this article.

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.

98 thoughts on “We still haven’t spent the £35m…

  1. I reckon he just sits there burning it note by note 😆

    On point, its not as easy to say here is 35 million, go spend it. Again I’m nit even bothered by it as i think the TEAM being improved is more important than how much we spend.

    There is another article in a bit debating this very point, but with a different slant. Hopefully the two will kind of work together.

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  2. i would like to see two strickers one left back if ENRIQUE goes i think we have enough money for that

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  3. Stop moaning for this 35 mill… the most important thing is the squad to be stronger the next season. 35 mill or 15 mill I don’t care… Money not always means quality.

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  4. the argument will go on and on regarding the ‘Carroll money’, some people can’t seem to see that deals cost more than the headline making fees they sign on for.
    Just because we recieved £30m, doesn’t mean £30 m will be spent on signing fees, anyone who thought this, well, they just deserve to be disapointed.

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  5. It’s like starting an article with “Barton sold for 2 mill” as the headline followed shortly by…’would be highly unlikely’. is it all just about getting hits or does someone who writes these things actually have something to say?

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  6. pardue has said to us a few month ago we will be spending most the 35 million , we have spent 5 million and he says we are gna get another 2 players in so in my maths we are gna buy 2 more players at the value of around 15 million each???? BOLLICKS PARDUE AND ASHLEY – YOUS HAVE LIED TO ALL NEWCASTLE FANS, GET OUT OF OUR CLUB!!!!!!!!

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  7. Read this on another blog – you need to think of your own material

    quality not quantity applies to blog posts and transfers

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  8. As long as the squad is stronger than last season, (right now it is!) I really dont care how much we spend of the £35m. But it would seem we are spending money, not players, but the training ground ect, and that is just as important. They havent said they will spend the entire £35m on players, they are using it on both players and the club facilities and such.
    So far I see no reason to be panicking.

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  9. what is it with some fans just want to blow 35m. would you be happy if we got 3 luques in for 35m get a grip he is running the club as it should be run and not running it into the ground some people would just love to see us blow millions then go into administration but i guess that would be fine as long as he spent the money. its about time people woke up we aint a top 4 club and we cant keep up with the pace setters its just not gonna happen maybe in the future but not now so lets just get behind the club and team

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  10. If no one else was to leave then Pardew wants two players in, a winger and a striker.

    N’zogbia, Erdinc/Long seem to be the general idea which would add up to about £15 million which would back up Brown Bob’s theory 🙂

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  11. moore 83 – most toon fans are angry bcos we all know most the money is gna end up in mike ashleys back pocket!! yes your right we dont need to blow loads of money but it would be nice if we knew where the money was going!!

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  12. By September I would expect the club to have spent a few million in the transfer market, not spend 4.5M on Cabaye but offset it by selling Nolan so no – or very little – actual outlay. I don’t expect any huge transfer fees to be paid but by the time everyone who’s leaving is gone and the new signings are all in I would expect the club to actually have spent some money and not just broke even (or made a profit). If by Sept we are actually down 10M I would be ok with that (with the wages/signing on fees etc being factored in). That is the only way to prove the 35M is going back into the club.

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  13. what about the: tv revenue, gate reciepts, sponsorship, merchandising etc, I thought this money was for all employee wages and running the club (business)?? Transfers and sales should surely come out of the same pot?? I don’t expect us to go for trophy signings but we need 2 strikers, r/w, c/d ,l/b ,d/m some players to straight into the team(striker,r/w and l/b) others as cover. Lets show some AMBITION please. I know theres plenty of time left,LETS USE IT TO STRENGTHEN OUR CLUB

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  14. Army, I don’t know if you do but if you have NUFC.TV then you will of seen the new training complex, which is looking very good!

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  15. Promises were made the money would be reinvested. If MA doesnt i would of rather he just came out and said, its to pay debt off but instead he,s lying yet again. We should have a budget 4 this seasons transfers which should be 15 to 20 mil plus the £30 or £35mil offa the judus sale. I dont care if we spend it all But its There in the bank we need 2 strikers 1 rw and a Defender and if any other players leave we need to replace them. Every fan can see what we need except the top brass if however by the 1st of september we have 4 new players in i will hold my hands up but i wont hold my breath

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  16. Dan4toon…Ashley is probably only dolling up the training complex so he can sell it 😆

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  17. I think we will spend some of that money but I think the rest may be invested into the club so that we are ready for when the financial fair play rules come into play.

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  18. Lads I cant understand all this crap about the £35mil, does it really matter how much of it is spent just aslong as we have a better squad for the season ahed.
    All I ever hear is how much people hate the Fatman and how he is pocketing the money from Carroll etc.
    The way I see it is the Fatman aint going until he gets his money back and the sooner that happens the better it COULD be for us, so if the £35 mil from Judas means we get rid of the Fatman 6mths earlier all the better.
    But then we could have another problem in who the next owner is going to be because there is a chance that they could be worse than the Fatman, but we will have to cross that bridge when we get to it.

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  19. agree with Jimbo @ 20 about the lying. How can our sqad be stronger when we still have perch smith routledge raylor loverman ranger xisco in it. the team is coming along nicely IF we keep our better players

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  20. batty do u rekn we will have any1 in before america ?? there saying zoggy is favourites to go 2 villa 😕 dont know how true that is tho

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  21. dave i doubt the next owner will be worst than cashley like 😆 that one im pretty certain on 😉

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  22. Personally I don’t think we will have a new owner that so many people crave for a long long time. Not just us, I think less and less people are wanting to buy football clubs with the mess that footballs in.

    Even if we did have change of owner it might be the case of better the devil you know because for however unlikely it is we get a new owners, it’s even more unlikely they will be someone who just wants to splash the cash.

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  23. batty i think joey will be sein out his contract but i think jose will be off 😕 , just hope we havent got wayne bridge at left back next season 😆 😆 😆

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  24. tbh i totally would have thought jose would have been gone by now!!! i think if clichy goes to citeh then jose will be off to the emirates!!

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  25. What I can;t get my head round is how we were prepared to apparently offer £12mil for our ‘main target’ Gameiro. If he’d wanted to join clearly we would have been able to afford it including what seems to be the new craze of adding up the costs of agent fees signing on fees etc. Surprise surprise he doesn’t want to join and suddenly the willingness to spend large sums of money on transfers has gone. SO, either the club were lying about ever wanting to spend that sort of money on a top class striker or once they realised they weren’t going to get him they’ve decided to just crack on with Ba and Ameobi and pocket the AC dollar. What was our plan b if Gameiro said no? Was it to publicly say we were chasing Gerinvho even though he’d publicly stated he was only joining a champions league club? Yeh it was and were we ever going to get him, probably not, which is most likely why the PR merchants at the club told someone we were after him. My worry is that the rest of this window will unfold much like many others, where we be linked to some fantastic players but end up dipping into the championship for some more fresh talent like James Perch. I don’t necessarily want the club to spunk £35 mil on big names, but like most fans want to see it sensibly spent on a 3 or 4 key positions that clearly need strengthening. 1 or 2 more players simply isn’t enough when we struggled so badly for depth last term. IF any on the rumoured departures go ahead then this need will be even more pressing. Can’t we at least ask for honesty from the club and if we have concerns over the size of the squad you can bet your bottom dollar Pardew will. I think this transfer window would have been the perfect opportunity for us to really kick on after a solid first season back. The club has a bit of money and we could really build a young team with class but also depth. If we don’t recruit a bit more than 1 or 2 faces then injuries (and they are inevitable with 4 or 5 of our core squad even recovering from serious injuries or having history of medical problems) will leave us very exposed. Please use the rest of the window wisely and grow some ball Pardew!

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  26. But would Jose really go to Arsenal? I don’t seem him going there, arsenal aren’t producing the trophies that other teams above them have. Yes he might go but I would think he would go to a club that has won a trophy in the last two or so years. I’m surprised that he hasn’t gone yet too, but some of his performances towards the end of the season wasn’t up to par so surely clubs may have been put off by that

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  27. The amount spent is irrelevant, but if the board and Pardew are to salvage any credibility form the last disastrous transfer window, they need to revamp the forward line in the same manner as they have the defence.
    Thats what was promised, Ba is a start but they need to go further, quality is needed up front as its the area which has been holding the team back, particularly when Carroll went.
    They cant afford to stick it up the fans again, ” No capital outlay” meant just that, so in the same manner, ” The Carroll transfer cash will be re invested in the squad”, should also be strictly adhered to.

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  28. goose he didnt look happy did he!! i went to the last game of the season when they did the lap around the match at the end and jose looked sick of his life !!!!

    any1 know when the tickets are out against arsenal??? cant miss that 1 like even if i have to bump a few bills 😆 😆 😆

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  29. army- yeah i noticed on the highlights, just seems his performances weren’t that great. didn’t have his usual quality on the ball. Seemed like he was sulking all the time

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  30. I think arsenal will promote Gibbs to no1 left back and Traore to no2 just like when Cole left and they promoted Cluchy as his replacement…

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  31. Army @ 32 the next owner could be like the Glazers buying us with money that has been borrowed or the Vinky’s chicken ranch, we just dont know who we would get ?

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  32. “When I initially heard in February that the Carroll money was going to be reinvested in the team it caused me to reminisce to the time when I was 6 years old and my Grandad (RIP) gave me £5 one day out in town.”

    when I first heard this I thought LOL more Ashley bull**** sprouted by Pardew..

    time yet tho, he might sign C Cole yet 😯

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  33. Batty I cant wait to get shot of the c@nt but the problem is we dont know what the new ones could be like, if the Fatman sacked Lambsarse or moved him I would give him another chance simply because we could get worse, dont forget at the time when MA came in we thought we hit the jackpot 😉

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  34. @53

    for all his bull**** I’d still choose Ashley. At least we know we wont be bankrupt and we more-or-less know where our ambitions lie..

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  35. Spoke to M A on the phone (he rang me) and he told me the money has gone.
    Apparently he was reading a blog last week and lost a bundle.
    Hard to make out much in between the swearing but I picked out the words; batty; rock; stars; 14 to 1; 7 to 1; donkey and coming home sick! I think he may have been drinking cos he slurred that last word and it sounded more like sixth
    Still got no idea what he was on about.

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  36. dave hang your head in shame ,and you better hope icedog dusent read it i can see him blocking you on FB 😆 😆

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  37. Ive got to say them chicken farmers buying the club would scare the **** out of me, The other day i saw that steve keen talking about blackburns owners wanting the champions league within 3 years… 🙄 😆

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  38. keep calm lads…6 weeks is a long time b4 the season starts…so what we havnt spend any big money on big players…..we not in the top 4 are wee..so big players are not coming here are they..so what do u wont…get reel lads. .if we are not going 2 pay big wages then…stop coming out with that 35 mil or ashley…at this moment we have got in good players in for nothing..we havnt yet spunked of any money on gibson or some other joker have we..then u would having a go at that as well…no players have left apart from nolan…doesnt mean anything if we dont spend big on players…all i wont is winger a striker and fullback..3 players thats all i wont…

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  39. It’s pretty simple really, using a one off income to pay for fixed costs isn’t a very good way to do things.

    Fixed costs should be paid for from the fixed income – simple!

    The club will have a salary cap ie a salary to turnover ratio, if that ratio is set at 50% of turnover then as long as the club don’t go over that they’ll be fine. That could rise in the yearly budget and income projections when they work in a % rise in income ie TV, merchandise and match day income.

    When the club receive a one off income like £35m from a player sale this should be reinvested back into the club as one off investment. If that investment is in transfer fee’s (which it should be) as long as the players they bring in don’t take the salary cap above the 50% ratio the club are doing great.

    A good analogy would be receiving £40,000 to buy a car and saying right I’m only going to buy a Audi A4 for £25,000 and use the other £25,000 to pay for my tax, insurance and fuel for the next few years. what’s the point? What happens when you run out of money and you’re left with an old car that’s worth fck all. If you can afford to pay for the fuel, tax and insurance from your own fixed income you can spend the one off money on a better car.

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  40. I`ll tell you something I have moaned about fat man not spending the 35 m but for god sake don`t spend any of it on Wayne Bridge! I would rather keep our powder dry than even waste money on his wages. If we are going to spend spend on quality and their is nothing wrong with paying a high fee to secure that quality. we can`t be lucky all the time and get the likes Tiote on the cheap.

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  41. Look at the rubbish we have bought in the past, Marceleno and sisco etc. If we can build a stronger squad for next season and still have money in the bank then that wouldn’t be a bad thing. A lot of clubs will have problems when the new fair play rules come into play so the inportant thing is to gradually inprove the squad and finances at the same time. Yes MA has made some mistakes but is there any other people out there who want to offer the club an interest free loan for a 150 million then I am sure MA would like to here from you. The big fella is starting to get things right and maybe a bit more of a welcome to him and his family on match days may help.

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  42. three cheers for big mike! – hip hip hooray – hip hip hooray – hip hip hooray & one for luck – hip hip hooray.

    ya fat b@stard.

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  43. I repeat anyone who has a 150 million pounds to give NUFC a interest free loan then please step forward. If no then let Newcastle be United guys its the only way untill the dinamics of the club change. Come on….

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  44. batts when fatty finally slings his hook – i’m pretty sure it’ll be with every penny he’s been forced to put into the club + a bit more that’ll cover the interest he’s not charging himself.

    i repeat – ya fat b@stard.

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  45. Charging interest on the loan would be an easy way of taking money out of the club. I wonder what Freddie Sheppard or Sir John Hall would of done. Wake up guys and let Newcastle be UNITED…….

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