It may be over a year since Steve McClaren was sacked by Newcastle in March 2016 but it is only now that his compensation package has been revealed.
The full Newcastle United accounts have now been lodged at Companies House and they include details of the amount of compensation.
Though he isn’t named, the accounts state that provision was made for £1m to be paid for ‘loss of office’ for one Director of NUFC.
The club had four Directors during the accounting period (up to 30 June 2016) and they were Lee Charnley, Bob Moncur, Graham Carr and Steve McClaren.
With only Steve McClaren leaving, it is clearly the Head Coach (and Director) that the £1m was set aside for (there are media claims elsewhere that the full £1m may not have had to be paid with Derby employing him later in the year, though no official confirmation of that).
The total wages/salaries paid to the four directors was revealed to be £956,000, with the highest (unnamed) one paid £674,000.
This compares to £296,000 being paid in total to directors the previous year (up to 30 June 2015).
We can draw a number of conclusions from this information.
It seems clear that the £674,000 was Steve McClaren’s wages for the year up until he was sacked on 11 March 2016.
There had been media reports when he was appointed, that McClaren’s Newcastle salary was £1m per season.
So it looks as though he was due up to a year’s salary as compensation when sacked, whether this was already part of his contract, or agreed when the decision to get rid of him was made.
Taking it pro-rata, the £674,000 the highest paid director received, would work out to around £1m for a full year, if as looks certain it was Steve McClaren’s pay from 1 July 2015 until 11 Match 2016 when he left.
With the total pay for Directors being £296,000 the previous year (2014/2015), knocking off McClaren’s £674,000 (from the £956,000 of salaries for the four directors) would then leave a similar amount (£282,000) to be divided between the other three directors (Charnley, Moncur and Carr).
The previous year (2014/15) the highest paid director received £150,000 out of the £296,000 total and that would have been Lee Charnley. So Graham Carr and Bob Moncur must have shared around £132,000 in 2015/16 if Charnley stayed at £150,000, with presumably the chief scout getting the lion’s share of that.