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Lee Charnley quotes on Newcastle United finances – Conveniently forgets to mention this

2 years ago
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Lee Charnley continues to be the only named senior executive at Newcastle United AND the only director on the board.

No other football club of any size having anything remotely resembling this bizarre set-up.

To compound the whole farce, there is widespread acceptance amongst fans and media that it is actually one of Ashley’s inner circle, Justin Barnes, who is in charge at Newcastle United on the owner’s behalf.

Lee Charnley instead having the role of being the public face to blame and divert as much blame as possible away from Mike Ashley.

The Off The Pitch website say they have spoken to Lee Charnley and published quotes (see below), Mike Ashley’s stooge insulting the intelligence of Newcastle fans, as well as failing to give the whole picture, conveniently forgetting to mention certain things.

Lee Charnley patronises supporters by explaining that it isn’t a case of one big TV payment dropping into the clubs bank account, that instead the money comes in at certain stages spread throughout the year. This is something that pretty much everybody knows by now anyway and is a total red herring anyway. It doesn’t matter when the money drops in, it is still the same amount(s) AND we know that Newcastle bank more than most others, regardless of when cash is paid to clubs by the Premier League.

The real problem of course is the money that is (and isn’t) spent, you can say what you want about how and when it goes in, but why aren’t Newcastle competitive on transfers, as compared with say Huddersfield, Brighton and Bournemouth?

Lee Charnley talks of wages to be paid, agent fees on transfers, national insurance and so on, BUT every club has these costs, so yet another red herring.

It is particularly illuminating when Lee Charnley tries to explain in simple language, so we all understand, just how much of a financial commitment a typical signing might be: ‘If a club buys a player for £10 million, there is a 5-10 per cent fee then goes to the player’s agent and that is spread over the length of the contract. An average deal might be £50,000-a-week (including national insurance) for the player’s contract, for five years. That is a financial commitment to a football club of around £26.5 million which is generally not really recognised.’

Once again, this is the same for anybody buying a player, yet Newcastle United are the only club who want us to think of wages as though they should be classed as part of a transfer fee.

The wages in each of the years that a player stays at the club, are paid out of the income from that particular year. The club sound like the way a government works, when they like to make various announcements about providing funding when in reality they are running any number or different stories talking about the same single funding.

In actual fact, Newcastle United have NEVER paid £10m or more for a player and then paid out five full years of wages. So Lee Charnley is talking about a hypothetical situation that is yet to become a reality under Mike Ashley. Newcastle United have in the past paid over £10m and then paid out five years of wages but Alan Shearer was signed 23 years ago for £15m and received 10 years of wages.

Wijnaldum was signed for over £10m but only one year of wages was paid before he was sold, Florian Thauvin only paid six months of wages by Newcastle before loaned back to Marseille and then sold, Mitrovic two and a half years of wages before loaned and then sold to Fulham, Mbemba three years of wages before sold to Porto, Andros Townsend six months of wages before sold on to Palace and so on.

Talking about one player’s wages in isolation is such nonsense anyway, as it totally ignores the fact that when a new set of wages are added to the wage bill, another player has almost every time been sold/let go and their wages drop off. Once again, Lee Charnley on behalf of Mike Ashley wants us to only be thinking of the money that might be spent rather than any savings off the other end.

The bottom line is that Newcastle United have one of the lowest wage bills in the Premier League and have had no/minimal net spending on transfers in Rafa’s three years at NUFC.

Yet the 2019 Deloitte report once again showed Newcastle United in the top 20 in the World when it comes to revenue.

Something doesn’t add up…

Lee Charnley speaking to Off The Pitch:

“There remains a lack of understanding about the Premier League and how the television money comes into your football club, the perception that £125 million drops into it each summer is not right. The reality is more complex.

“It’s not that we’re sat on this big pot of cash waiting for a rainy day, money comes in, money goes out, what is left is available to spend.

“In July, around £30 million arrives in the bank accounts of top flight clubs. A further payment comes in January, based on television appearances and then a further TV bonus landing in May.

“All the while there is around £4 million-a-month coming in from the TV deal, and then there are overseas television rights.

“There is a complexity to doing business lost in headline figures that talks about things like war chests.

“The money coming in from the television deal is spread over the course of 12 months. It doesn’t all land at once. Where does it go? Wages, of the players, of staff, on transfers and on the running costs of the club.

“If a club buys a player for £10 million, there is a 5-10 per cent fee then goes to the player’s agent and that is spread over the length of the contract.

“An average deal might be £50,000-a-week (including national insurance) for the player’s contract, for five years.

“That is a financial commitment to a football club of around £26.5 million which is generally not really recognised.”

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