Newsletter

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

News

Simon Jordan talks about idea of upcoming £1billion Newcastle United transfer budget

5 months ago
Share

Simon Jordan has returned to his favourite subject, Newcastle United.

The failed Crystal Palace owner talking about the seemingly imminent sale of NUFC by Mike Ashley.

Now reported to be at the stage of everything signed and agreed by the two parties, a deposit paid by the bidders, with just the Premier League now to go through their process / checks.

Simon Jordan has been focusing in particular on what will happen to the spending on players if/when the takeover is completed.

This is one of those bizarre situations where a pundit or journalist states something as though it is fact, when it is anything but.

Simon Jordan saying that Newcastle fans are ‘naive’ for thinking that new owners would instantly be intending to spend £1billion on new players.

So Jordan’s narrative is that Newcastle fans are thinking a billion pound budget will be available to spend as soon as new owners come in?

Who do you know that thinks that?

The trouble now is that the likes of Simon Jordan and other unscrupulous pundits and journalists, will claim what a few Newcastle fans says on Twitter or other social media, as being the prevailing view of the NUFC fanbase. Journalists regularly do this these days, take a Twitter comment and use it as the entire ‘source’ or basis of their story.

It is part of an overriding pattern of wanting to portray Newcastle fans as deluded simpletons, always expecting far beyond what is possible in reality.

I would say that the overwhelming view of NUFC supporters is that they know fine well that it isn’t a case of instantly being able to spend anything remotely like £1billion. That it is a case of higher spending, that can go higher and higher, as the revenues of the club grow…if the takeover happens.

Simon Jordan says that realistically Newcastle: ‘will be able to spend £50m, £100m that Mike Ashley did not want to spend during his tenure.’

Well, since summer 2016, these last seven transfer windows have seen an average net spend per window (figures from Tranfermarkt) of £9m allowed by Mike Ashley.

Football finance expert Kieran Maguire estimates that if the takeover goes ahead, Newcastle could spend around £150m in this next transfer window and be able to handle the associated rise in wages.

FFP rules for Premier League clubs say that a club can lose up to £105m over the course of three seasons and with Mike Ashley having insisted Newcastle United made a profit in seasons since promotion, it will give them extra leeway.

The FFP rules on the losses clubs are allowed to make, see certain things exempt. So, Newcastle United new owners could spend whatever they wanted on youth development/academy and the infrastructure (new training complex and expand St James Park) to correct the shocking Mike Ashley era of refusing to invest in these key areas, with the levels of money allowed to be spent on players totally unaffected.

If the Saudi PIF took charge, it would be a certainty that they would do everything they could to increase revenues because only through ever higher revenues are you then allowed to spend ever higher amounts on transfer fees and wages.

Whilst arranging more lucrative kit and sponsorship deals will tick some boxes, increasing the capacity of SJP is a no-brainer if possible, or possibly even a brand new stadium. A club that can fill a 52,000 capacity (averaged 51,106 over 23 games) in the second tier…what could be possible with ambitious owners?

Every revenue area will be looked at, more matchday money is obvious, whilst Mike Ashley shutting all but one of the club shops so they weren’t competing with his Sports Direct stores, is a one that needs reversing.

Simon Jordan speaking to Talksport:

“I don’t know how it [the takeover] can give them [Newcastle United] unlimited funds because of what is going to happen.

“Newcastle are only going to be able to operate at a certain level given the nature of FFP.

“The window that Roman Abramovich [with Chelsea] snuck through, and to a lesser extent Sheik Mansour [with Manchester City] got through, is not necessarily going to be as wide open.

“They [Newcastle] will be able to buy bigger players and spend more money,

“They will be able to spend £50m, £100m that Mike Ashley did not want to spend during his tenure.

“But the idea that they [potential Saudi PIF NUFC owners] are going to go ‘hang on, we are going to spend a billion quid’ I think it is naive of Newcastle fans to think that is the case.”

Share

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

Have your say

© 2020 The Mag. All Rights Reserved. Design & Build by Mediaworks