One Superhero required, apply within.
Posted on June 23rd, 2009 | 9 Comments |
But what if the worst case scenario happens and after seeing the books no-one is prepared to buy at the current valuation and Mike Ashley refuses to accept the price they are willing to pay? Now that’s not a scenario any of us want to envisage but what if that’s the outcome? What happens next? With the club due to dish out £10m in loyalty payments to the players before the 30th June, and staged transfer payments of £29.2m allegedly due for 10 players we have purchased over the last several years, Mike Ashley must rue the day he ever thought of buying a football club for a bit of fun!
But it gets worse. With a wage bill currently 75% of turnover which will reduce when Owen, Viduka etc leave, but which will remain unsustainable for a championship team with revenues dropping like a stone due to the reduction in TV money from £37.2m last year to £12m for next season; the situation doesn’t look too rosy. Revenue is further impacted negatively as season ticket prices reduced by an average of 9%, even with 4 more matches to be played next season, player image right costs of £6.2m per year, players on long and costly contracts who may try and sit tight as no-one else will buy them with their current wages, or can afford them if they go on loan. What would Ashley do then?
So while we think it’s bad now, it could get a whole lot worse.
Is it a bird? Is it a plane?
No, it’s a middle east consortium, laden with their millions and intent on making Newcastle hugely successful.