The news last night that Newcastle United had offered Sammy Ameobi a new contract provoked an angry reaction from a number of Newcastle fans.

The supporters casting doubt on whether Shola’s younger brother if good enough to be part of the team/squad, plus slagging off the club for their stupidity in wanting to keep Sammy Ameobi at St. James’ Park.

However, all of them are missing the point.

The only reason Newcastle United have offered Sammy Ameobi a new deal is purely down to Mike Ashley’s favourite subject….cash.

If the club hadn’t made an offer to the winger before his contract ended on 30 June 2015, then they would be guaranteed to get nothing.

However, by making an offer (if you read the club’s official statement properly, you will see it says they have offered Ameobi a new deal, but there’s no reference at all to whether he has any intention of signing it), it means that Newcastle United will be due compensation if Sammy Ameobi knocks back the offer and walks away to sign for another club.

Sammy turned 23 on 1 May 2015 and as such, comes under the rules governing players under the age of 24 who move when out of contract (despite being offered a new deal), with their former club entitled to compensation.

Where a player under the age of 24, has been offered a new contract by his club and he rejects that offer in order to take up the opportunity to sign for another club, compensation will be payable.

Usually, clubs will reach agreement on a compensation fee but when the two clubs’ valuations differ, the matter will be settled through an arbitration process.

That process is operated by the Professional Football Compensation Committee (PFCC). The PFCC comprises of an independent Chairman, plus appointees from The Football League and Premier League (as appropriate), an appointee of The Professional Footballers’ Association and an appointee of the League Managers’ Association.

The PFCC hearings ask each club to provide evidence to support their valuation of the player in question. In making its judgment the committee will take into account the costs of both clubs in operating a Football Academy or Centre of Excellence, as well as the age and playing record of the player, the length of time he was registered with his original club, the terms offered by both clubs, the status of the two clubs, the interest shown by other clubs in acquiring the registration of the player and any amounts paid by the original club to acquire the player in the first place.

In deciding on a compensation figure, it is not uncommon for the PFCC to set fees that increase as the player becomes more established at first team level.

It is quite usual for clubs to receive a basic compensation fee with further payments becoming due on the player’s debut, following a certain numbers of first-team appearances and after international appearances. It is also usual for there to be a sell-on fee should the player be sold at a profit at any point in the future.

An example is Aaron Creswell who made around 70 appearances for Tranmere Rovers and then when aged 21 in 2011, rejected a new contract, instead signing for Championship club Ipswich Town.

The PFCC decision:

Ipswich Town should pay Tranmere Rovers initial compensation of £240,000.

An additional £45,000 when Cresswell made 15, 30, 45 and 60 appearances for Ipswich Town.

An additional £100,000 if Ipswich Town got promotion to the Premier League in the next 3 seasons.

Tranmere Rovers to also receive 20% of any profit made by Ipswich Town in selling the player to another club at any point in the future. That of course happened with Cresswell’s move to West Ham last summer for an initial fee of £3.75m which could rise to around £7m, potentially giving Tranmere close to another £1.5m.

My money will definitely be on Sammy Ameobi moving on, as I think the contract offered by Mike Ashley will definitely ‘encourage’ the player to think a move elsewhere will be the best for him, as well as allowing Mike Ashley to pocket some more cash.

With 67 first team appearances (including as a sub) for Newcastle, including 54 in the Premier League (plus 9 in the Championship on loan at Middlesbrough), any compensation set by a tribunal would likely be a tidy sum. Especially when this season just gone, Sammy Ameobi has made 25 Premier League appearances, plus another 2 in the cups.


  • Stephen Walton

    Cheap option?

  • toonterrier

    If he is being offered a deal no matter how poor it is he will snap it up as I cant see any other half decent club will want to take him on. Don’t they watch him on the pitch running for ten yards then stopping for a rest. He’s not a kid but a twenty three year old who should have proven his worth by now. What will the club say next, He’s a late developer and should come good over the next few years. Worse player than Obertan and as much use as his brother. If we keep him it will show us how much ambition the club has. Get shot of him and the other dozen players who aren’t up to the job.

  • JLawls91

    Does that principle not go out the window if he signs for a club abroad though?

  • TimBoddy

    I don’t think there is anything massively controversial about giving a relatively young player a couple of extra years, nor do I think it’s overly cynical to do that just to ensure that the club gets some form of return from a player they have spent money developing. Just reasonable business sense to me.  If he comes good in his first few games next season, great. If not, sell him on for as close to break even as possible.

  • Kevin Halliday

    Surely he will cost more in wages than we will recoup because we won’t play him enough to put him in the shop window.

  • lovelybob19

    bigladrik NUFCTheMag if thats true then good business

  • Michael Maximus Moose

    The fat Scumbag never misses a trick

  • wor monga

    So what if money is the reason…they offer him a contract, and it’s up to
    him if he wants to stay or go…why give him away for nowt?… 

    …when he’s already
    shown he has some good football ability, and is young enough to improve

  • You make it sound like wanting to get money for him rather than nothing is a bad thing?? What makes that even funnier is the people criticising this are the ones who probably want to see Sammy out of the door anyway.

    I actually think he gets a lot of unfair stick and whilst I won’t lose much sleep if he goes I think he is certainly worth having as a squad player.

    He is contributed more to the club this season than the likes of Cabella for starters.

  • toon tony

    Great news. !!!! It’ll be more money in the FCB ‘ s war chest when he goes on his spending spree. !!!

  • Porciestreet

    toonterrier He will always be needing a breather because he is asthmatic and can only work in short bursts anyway. It’s a great shame. He went to school with my Godson and was always a standout player but alas, was never going to go much further than he has . A pity also because he has enormous talent but circustances won’t allow him to release it.

  • TonnekToon

    Looks like he may be getting the chance to break his brother’s longevity record , it must be something to do with the name Ameobi

  • nufcslf

    I like a ‘larf’

  • nufcslf

    wor monga You seem to like watching overpaid Cashley arse licking headless chickens. Good for you!!!

  • toonterrier

    Porciestreet toonterrier I know he has medical problems but unfortunately it doesn’t mean we have to take it into account when he’s playing premiership football.
    I also realise he comes from a decent family but again we need players to work their socks off for ninety plus minutes and the lad isn’t up to it.

  • CMRowley

    I don’t see any problem with this? It would be stupid not to. The only downside I see is if the lad signs it.

  • artois003

    Who gave him a contract in the first place. He is absolutely useless , if you put him and Emmanuel rivillere together you would still not get a player who is probably only good enough to play for Hartlepool. That being said Hartlepool would probably still think he is not good enough to play for themed

  • Ollie Burtons Grandad

    Well let’s hope the contract offer made is shite enough for Ameobi to move on. After all he is next to bloody useless.