This is not ‘windfall’ money Newcastle United are receiving – It is simply a payment advance
An interesting update as it is reported that Newcastle United are getting a cash injection to help tide them over during these virus hit times.
The report from The Times says that at last week’s meeting of the 20 Premier League clubs (via video conferencing), they agreed that money should be released early from central funds to help the cashflow, during this time of the suspension of football and no matchdays.
This money would have usually been handed out at the end of the season but the clubs voted to release it early.
The cash is part of what would/will be paid out on merit payments (where finish in league) and from facility fees (how many times shown on live TV).
There will be big differences between how much each club gets, with the newspaper saying at the top end it will be over £20m for some clubs.
Newcastle United are currently 13th in the Premier League table but are in the top seven when it comes to number of times on live TV this season, so NUFC should be at least halfway up the list in terms of how much they will bank in advance.
A number of those in the media have wrongly labelled this as ‘windfall’ money.
Windfall money is cash you weren’t expecting and this is very definitely cash that Newcastle United were expecting, just a little earlier than normal. Exactly the same as Premier League clubs last week agreeing to £125m to be paid now to EFL and National League clubs to help their cashflow, that was all money due to go to clubs in those leagues but brought forward. Particularly important as for those clubs, matchday revenue is by far their biggest form of revenue, unlike the Premier League where it is broadcasting money.
It is a bit like a mate of mine who owns a company and some of the staff ask for an advance on their wages every month, they are not getting a ‘windfall’, they are getting money they would have got anyway but just earlier, meaning they get less at the end of the month than if they hadn’t asked for an advance.
What it definitely is though is yet another reason why it is so appalling that Mike Ashley has exploited the government furlough scheme, making the taxpayers financially support his staff in these difficult times for so many people.
I have a feeling that the Newcastle United bank account is very healthy at the moment, with this advanced cash now landing on top of the £28m or so of transfer funds that haven’t been spent this season, that Lee Charnley said were available last April (£61m plus any cash from sales).
Once an agreement is reached on a portion of the NUFC player wages being deferred (delayed) until this season is completed and final broadcast payments are made to clubs, there will be definitely no huge imminent pressures on finances at St James Park.
A report earlier today also showed that Newcastle are the Premier League club best placed for transfer fee instalments yet to be paid, NUFC are due a net £15m+, more than any other PL club, with Manchester United worst off, with a net debt of over £169m when it comes to transfer instalments still owed.
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