Newsletter

Get your daily update and weekly newsletter by signing up today!

News

Massive £40m transfer surplus announced by Newcastle United

3 years ago
Share

Moussa Sissoko was sold to Tottenham by Newcastle United on deadline day in summer 2016.

The much anticipated departure saw a reported fee of £30m agreed by the two clubs.

Prior to that Sissoko deal, Newcastle United had spent an estimated £50m+ on transfers in that window, with a similar amount thought to have been recouped with players leaving.

So the £30m deal for the midfielder was thought to be more or less the transfer surplus achieved as Rafa Benitez bought and sold to try and turn the club around.

However, it has now been revealed by the club that the actual figure is far higher in terms of profit on transfers.

Newcastle United announcing that the club actually ‘generated a net surplus of around £40m in respect of changes to the playing squad’ last summer.

This information has come into the public domain thanks to the full Newcastle United accounts for 2015/16 being lodged at companies house.

Even though those accounts only go up to 30 June 2016, the extra information was supplied as to transfer activity that followed that summer.

However, Mike Ashley has continued his policy of NUFC paying for players up front BUT allowing other clubs to pay in stages when buying from Newcastle,

So these new NUFC accounts (they also revealed Steve McClaren’s compensation package – see HERE) also reveal that though there was a £40m surplus in terms of players sold/bought last summer, ‘a substantial proportion of the player sales are deferred and will be received over the next 3-4 years’.

This meaning that when the current season’s (2016/17) accounts are eventually published next April (2018), they will show more cash going out than coming in during this year, with the rest to follow in the coming years.

What impact this practice will have on money Mike Ashley will make available to Rafa Benitez is anybody’s guess.

As for Ashley continuing to have the club pay up front for players but allow others to buy from NUFC in instalments, it must surely have benefits, accounting or otherwise, for the club/himself.

Extract from Newcastle United accounts for period up to 30 June 2016:

‘Subsequent to the balance sheet date the club has generated a net surplus of around £40m in respect of changes to the playing squad, a substantial proportion of the player sales are on deferred terms and will be received over the next 3-4 years, with the result that in the year ending 30 June 2017 there will be a net cash outlay with respect to these transfers.’

Share

If you would like to feature on The Mag, submit your article to [email protected]

Have your say

© 2019 The Mag. All Rights Reserved. Design & Build by Mediaworks