So if you’ve just said “Wtf?” After reading this headline, and you think I’m on something, you’d be right, but it’s not mind altering substances, or Simon Jordan’s mind control. I’ve actually been on Twitter. Twitter often gets a bad rep, and rightly so for many reasons, but now and again you come across something so brilliant that it completely pulls you in, and in amongst all the funny Ole out memes. I found just that, an amazing, detailed and analytical break down on the new Newcastle United owners, and exactly what they could spend in their quest to rebuild our neglected club, and it’s quite simply amazing!
It comes courtesy of the superb Twitter account @SwissRamble who has previously offered expert analysis on the world of football finances, and it’s our turn now. I’m no financial expert, despite a couple of years within that world, but this information has been superbly laid out simplistically, that most of us can follow with ease, and I’d suggest you all get on Twitter, follow this page, and read through this thread.
Since 1999 TRUE FAITH has been offering an ALTERNATIVE VIEW on Newcastle United and the world around it. But this issue is unquestionably the most historic of any we’ve ever published – a souvenir of the takeover – https://t.co/RjQLrP8Ief #nufc
— True Faith: Newcastle United Fanzine and Podcast (@tfNUFC) October 26, 2021
The cliff notes in the main? The new mega rich owners could spend up to ‘600m over the next 3 years if they wanted to, and still not be in breach of FFP, no wonder the big 6 are shitting their silk shorts. The strangest part of this brilliant breakdown, is the realisation that the new owners have a platform to spend such a fee due to the gross neglect, and general misery of the parasitic former owner Mike Ashley, so er, thanks Mike? I guess?
I know, it sickened me to type that just as much as it did you to read it. If we use the Ramble thread to break down the ‘600m, it’s all to do with the Premier League Profitability and Sustainability laws, which allow clubs to make losses of ’35m per year, which works out as ‘105m over the 3 year monitoring process. Newcastle United made ’38m profit over the last 3 years up to 2020, and with that they can add that alongside an additional ’30m for “good” expenditure, meaning ’68m can be added to that ‘105m, allowing for ‘173m losses. This figure can also have an additional ’27m boost from Cvid losses, giving you the ‘200m total.
The Ramble thread helps to quantify what this means by giving an example of how buying a player would work. For example;
A player costs ’30m to buy
You sign him on a 5 year contract‘
The sum of divided down meaning ‘6m per year‘
This is important as the annual impact/amortisation is only ‘6m‘
This means Nufc could spend a lot more than the budgeted ‘200m by using this example‘
The ‘600m example would be that Nufc could buy 4 top ‘150m players over the next 3 years, massively increase the wage bill, and still be under the ‘200mm losses deficit laid out by the guidelines
‘All of these points are laid out in the links to @SwissRamble’ thread below
Following Newcastle United’s takeover by a consortium led by Saudi Arabia's Public Investment Fund (80% stake), #NUFC fans are eagerly anticipating a spending spree, due to the enormous wealth of the new owners, but how much can the club really spend, especially with FFP rules?
— Swiss Ramble (@SwissRamble) October 25, 2021
Now I know I thanked our previous shithouse of an owner earlier, but I’m going to revert to type and using the Rambles thread highlight just what a rancid, and vile owner he was for this club over the years. As you’ll be able to see in the thread above, one of the major under investments in our football club over the last 14 years is both our stadium, and our training facilities and academy. In contrast to the larger clubs, Ashley has only spent a pathetic ‘7m on both the stadium, and training facilities over the last 10 years, in contrast to Brighton’s ‘148m and Leicester’s ‘105m, and again I ask, why did the media spin us this line that we should be thankful for the fat cockney bastard? So so lazy!
The line of “Good businessman” is also a firm favourite of the mainstream media, when quelling any feelings of discontent from members of the Toon Army towards Ashley, but is he really though? It may be for his “Stack em high, sell em cheap” Sports Direct brand, but when it comes to growing the commercial portfolio of Newcastle United, he’s been woeful! A clear example of that is the clubs ‘6.5m sponsorship deal with Fun88, which pales in comparison to the big six on ’35m, not exactly great business Mike.
We are at the start of a new era at Newcastle United – filled with hope, excitement and controversy – come on the journey with the TRUE FAITH Podcast – people who love and know our club – ‘5:50 per month and a massive amount of quality content – https://t.co/zbh921FlfW #NUFC
— True Faith: Newcastle United Fanzine and Podcast (@tfNUFC) October 26, 2021
So it’s no wonder the new owners want to increase commercial revenue, and sponsorship for the club, something the other Premier League clubs have recently met to block. This is a very interesting case, and one that may require the services of True faiths resident councillor Yousef, who’s far better placed than me to open that whole can of worms and take a look inside, but essentially this doesn’t smell right does it? It could result in an injunction being taken out by United to block it, and there’s plenty of examples their no doubt well skilled legal team could point to, with both Everton and Leicester’s internal sponsors as potential targets to back that injunction up, check the thread for further details on that.
All in all, this brilliant piece of analysis gives us all a clear and precise look behind the curtain of what could be following this takeover, and I’d strongly recommend that you check it out, and not listen to media blowhards who are nowhere near qualified enough to provide such a financial dissection of our club, and of what the future could hold. The future is bright, roll on January, and hopefully, after seeing how much there could be to spend, our new owners, and new manager, can bring in some much needed quality to this fairly average playing squad.
‘Chris Currie -‘@wig82
Swiss Ramble unravelled the mystery of FFP for me also and it dawned on me that we could spend alot more than has been mentioned (in more measured takes on the takeover). What will hurt however, is costly, poor signings that have little impact and low re-sale value, as FFP will catch you out eventually (see Swiss Rambles take on Everton).. So our dealings in the market need to be shrewd to say the least. What CAshley has also ‘gifted’ us after years of miserly penny pinching is a club that has been run into the ground from a commercial perspective. Get that right and the owners will have even more to play with (which is why Man City and Chelsea still sit comfortably within the parameters of FFP according to Swiss).