The 1998 cut-off means Newcastle United squad value sees one of biggest drops in Premier League
The Newcastle United squad value has come into focus this week.
A new report estimating that the NUFC squad valuation has dropped by over £55m in a matter of weeks.
The virus situation has hit countless businesses and areas of industry.
Whilst it has obviously been boom time for supermarket chains and certain other types of business, for others things have simply ground to halt.
That obviously includes the football industry.
The majority of big companies have seen valuations drop with crashes in the likes of the Dow Jones and FTSE100/250. That include football clubs such as Manchester United where shares are traded (as was the case back in the day at NUFC before Mike Ashley became owner of 100% of the club).
For most football clubs, the financial worth you can put on the playing squad makes up the vast majority of the total club valuation.
Obviously it is an impossible job to put an exact value on a player/squad as just like selling a house, they/it are worth what somebody is willing to pay at any particular time.
However, Transfermarkt (a website that specialises in trying to assess transfer fees on deals that have happened and subsequent player values afterwards on an ongoing basis) has estimated that Premier League squads have collectively lost around £1.6billion in value due to the virus situation. They calculate a player’s value using a variety of data.
This is what they estimate each Premier League squad is now (9 April 2020) worth:
Manchester City still have the highest valued squad (£916.92m) but that has dropped by £225m from a month ago.
As for Newcastle United, as you can see Transfermarkt have the Newcastle United squad value at £221.56 but that is over £55m down from their early March 2020 value of £277m, before Premier League football was suspended.
Any valuations are going to be rough ones, as per the explanation above, and any changes are going to be done by applying a general idea/principle over the whole league, as opposed to looking at every individual player’s situation.
So Transfermarkt have reduced the value of all players born before 1998 by 20% and those younger by only 10%.
The reasoning is that the value of players who are younger generally holds up more than older players.
Therefore clubs who have a lot of key players born before 1998 are likely to suffer the biggest drop in value.
Which brings us to the Newcastle United squad value.
The current first team squad of players at St James Park currently, has only one player born who wasn’t born before 1998. What makes that statistic even worse is the fact that it is Matty Longstaff, who Mike Ashley has refused to give a decent market value contract offer to, with as things stand, the younger Longstaff brother set to leave when the next transfer window opens with NUFC only entitled to around £400,000 in development compensation.
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