Newcastle due a cash windfall, but it must be spent wisely.
Posted on May 20th, 2010 | 75 Comments |
It’s concerns money that is owed to the club from player sales, and could explain partly why cash at the club seems to be thin on the ground at the minute.
In the footnotes, it seems the club is still owed £17 million from the transfer of players like Damien Duff, Charles N’Zogbia, Obafemi Martins and James Milner, of which £13 million is due to be repaid this year. Of course this is a trend in football at the minute, to buy players over a number of years on a capital outlay, never never basis, which it seems is the way that some players have been bought off of us. In contrast though, our theory is to buy players using cash upfront only, which could be part of the reason why we can only expect a few signings to be made this summer.
Of those players, a certain James Milner appears to be a target fro moneybags Man City, and Aston Villa have already rejected a bid of some £20 million from the Eastlands outfit. Now the key question here is, did we do what most clubs would do when selling a relatively young player, insert a sell-on clause? A sell-on clause would mean extra money for us should Milner complete a move to Manchester City, and we know Mike Ashley loves money. So on that basis I would assume there has been one inserted as they are hardly a little known secret that is hidden in the depths of football knowledge, and in that case, Villa are right to hold out for as much money as possible as it benefits us aswell.
Anyway I digress, the main issue is will the £13 million be reinvested back into the first team, or is it earmarked towards club running costs? Before it starts, let me nip the whole ‘Ashley will put it in his back pocket’ thing in the bud, it won’t happen, and it hasn’t happened in the past as proved by the accounts when they have been published. Again I digress, but will it be invested in the first team after all?
Well throughout the summer there has been some press rumour of a £15 million transfer kitty, which if you couple it to this incoming money from transfers may just have had a degree of truth in it all along, although I am guessing more by luck than accurate judgement. If the £13 million is invested in the team then we need to be aware that it still won’t buy much, especially as our plan is to buy players up front using cash and not the club credit card over a number of years.
It’s a tough medicine to take for us all, but it is a medicine that wll ensure we thrive in the long term. It is at least a possibility of some cash being spent, and as it’s already accounted for as an income for the club then no new capital would be needed to give us a transfer fund.
Now lets see what happens.
NUFCBlog Author: toonsy
toonsy has written 643 articles on this blog.
Use it for running costs.