How Much Money Can Newcastle United REALLY Spend? | FFP Explained
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- Опубликовано: 21 июн 2023
- Newcastle look set to complete the signing of Sandro Tonali from AC Milan to get their 2023 transfer window underway. But is this just the first of many big-money deals that they'll be involved in this summer, or after 2 seasons of major spending are the club risking breaking the Premier League's Financial Fair Play rules?
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The Ashley/Bruce era was a real sh*t show. Absolutely no professionalism from those above while it's been proven that some of the players do care and are capable. Cannot have been happier since the takeover. What a man Eddie Howe is!
Remember the things Newcastle fans said about Mike Ashley on social media? If any Saudi fans say similar things about the new owner, the new owners will have them imprisoned or murdered. They've had a huge crackdown on social media criticism recently.
If you're still happy with this then you're automatically an unethical, immoral person.
Don't worry, when the terrorists group🇸🇦💘☠ purchases the clubs pride and dignity😔
Financial “fair play” is such a misnomer… how is it fair play that some clubs are allowed to spend 100s of millions more than others, regardless of whether the clubs can afford it. These rules are in place for only one reason, to protect the classically large clubs who have a lot of influence.
100% its just there to protect the "big clubs"
Totally agree. How could luton ever become a top team with ffp?? If they want real fair play then have a salary cap
Did Newcastle become a top team under the constraints of FFP?
Thought the exact same thing
Correct, ffp is a farce
FFP is in place merely to keep the “big clubs” ahead of the game. If season after season my club earns more and can spend more (through being successful on the field) how can anyone ever catch up? It’s a total con
Agreed. I get that there needed to be something put in place as the money has gotten insane but all it does in reality is protect those who have already spent their way to the top and closed the door to others.
Correct
Exactly
Keep the big teams big and keep the small teams small
Hendrick and Fraser to SA in £200m deal.
They are both amazing players and worth every riyal
Lol
You push a hard bargain, but we'll accept that.
Financial Fair Play magic - PIF-paf-poof!
@@stephenderry9488lol
Newcastle are on the Rise! 📈🌟
Newcastles FFP charges are on the rise too….
@@TomatoEditsone signing mate and ffp broken?????
@SomeRandomTomato There income will surely be bigger than city more local support for starters way more
@@marmedli9124that then tells you how those 115 charges really do stick like glue
Don't worry, when the terrorists group🇸🇦💘☠ purchases the clubs pride and dignity😔
There is still a lot of "deadwood" in our squad that will free up quite a bit in wages when moved on. Ashley had a habit of sticking bang average players on bumper contracts for some reason. I also think the new fanzone will produce a lot of revenue directly to the clubs pockets with fans wanting to go for the build up atmosphere. Fingers crossed on the plans for the St James expansion as well. FFP is obviously a hurdle but one that I'm confident we can get past.
Remember that commercial revenue will be increasing on a regular basis. They will like stagger ending dates of commercial contracts to ensure they are continually increasing the pressure for larger commercial deals as they negotiate new contracts.
Mike Ashley massively undervalued NUFC commercially. That's changing
they'll do what city did and have a sponsor or something that is owned by the same people
@@Cameron-qc7yk but City's you could argue have been above market value. Newcastle are still below market value. Shirt sponsor 25 mill while Spuds who aren't CL are on 40 mill. NUFC owners are smart af unlike some clueless RUclipsrs and mugs in their comments.
Also good to remember that when we’ve spent on players and have a good cycle of talent, we won’t need to add to our net spend, as long as we do good business we can sell/buy to make up funds against FFP. Liverpool did this well over the last 10 years with Suarez Coutinho etc.
The commercial revenue not even flatlining but regressing is one of the many, many negatives of Ashley’s tenure that that doesn’t get enough column inches. Once it’s stacked up alongside the growth for other clubs over that awful 14 years, and analysed in the context of the relative positions before his arrival, it’s really scary. It clashes with the ‘great businessman’ narrative as it was so short-sighted to put no effort into it and to create such a toxic brand that faltered so badly whilst others were seeing exponential growth in that key revenue stream.
There’s so much more to loathe; the lack of infrastructural investment (also short-sighted) and the stripping of key departments down to the bone being up there too. But it’s just a such a lazy uniformed argument to say that the club was in a good position in terms of FFP because of his frugality. It’s a half truth. It has strengthened our position in terms of FFP to some degree, but imagine the scope we would have had if we’d been even half as commercially astute as some of the clubs that we’re now trying to close the gap to. In some cases, closing a gap that was in our favour before his tenure.
Also, that frugality has burdened us with players who are no use to us on long term contracts because that was cheaper than replacing them.
It annoys me that Ashley can still annoy me so much, but it’s more so the mischaracterisation of his reign that grates so much. It’s either ignorant or intentional from those who do it but it’s always delivered in the context of telling Newcastle fans that they should somehow be grateful. It’s a sad state of affairs if the only ‘positive’ you can, (mistakenly) point to is one that was a happy accident caused by nefarious intent. It’s worse to be told to be thankful for it.
Yep this is why I'm always preaching patience with this new ownership as it's going to take a good chunk of time to undo all the damage Ashley did and to catch back up to the rest of the league. Great season just gone, but it's overachieving and will still need that time to be able to hit that level consistently.
Mate it's the ignorant fans of other clubs who didn't/don't get it. The media like us new the reality but chose their own agenda.... and still do. Filthy Southern/NW based media bias can't handle what NUFC can be when run properly. Fck them. Great read.
@@yyy-875 Look at our average attendances. Ashley was not cut off at the knees by fans in terms of revenue. 51k in the Championship. It was his business model of using SJP as purely a business model for his own businesses. He too could of invested and grown the club and it's value. Instead the stadium and training ground were left to rot. He lost in court against 2 muched loved figures Keegan and Gutierrez. Tbh the fact the club still received the backing it did was staggering. Imo 14 years of Ashley would half empty other grounds
@@yyy-875 The deal Ashley had in place means after the flat sponsorship fee Castore take most of the vast profit per sale (which is common). Where as some clubs kit suppliers pay upto 75m per season FCB sold ours for 5m per season on a 6 year deal I believe. He litterally destroyed our commercial dept in entirely. Irony being the FCB still has a deal in place with Castore so Sports Direct have items in their stores before the Castore run club shop. It'll take a little time to right Ashley's wrongs but we're getting there.
Thanks for breaking that down. It’s difficult to understand the limitations of what Newcastle can spend due to FFP. Please make more videos with Newcastle content as the analysis is always on point!
Idk where you popped out from but you are one of the best football channels on here
And your a geordie!
He popped out from WhatCulture/TrekCulture, which is still a little jarring for SF-loving Toon fans.
This is a great video and really bloody clear! Thank you. I've just sort off switched off everytime FFP is mentioned in the media but now I have a chance to understand what they are on about
Great video mate, very interesting👏
Very good explanation - some more major sponsorship deals would elevate revenue and they’ve got some of the best commercial people behind the scenes from what I understand. The other thing to bear in mind is once they get, say, 5 years under their belt they’ll be able to sell current players for a profit while new ones comes through but whilst they’re still getting there all player acquisitions are huge costs to the club. The ffp rules favour established big clubs with established revenue and acts as a barrier for smaller clubs to break into the top tier. The only way to do it is to maximise the revenue and spend up to the limits for 4/5 years - getting into the champions league was an unbelievable break this early in the project.
Loophole, get the owner to create companies in his relatives names and then get them to sponsor the club.. ching ching 🤑🤑
@@user-dn7tc9vh9w the chelsea method lol
Curious to know how much Santiago Muñez would go for in todays market.
There is actually a south american player called Santiago Munez who ashley signed and the club recently let go for free.
How is it a surprise that commercial revenue decreased? Ashley paid £0 for advertising that should have cost millions!
I've been wondering about this. Nice to get something close to clarification.
Newcastle are clearly trying to do things the right way but i want to know how Chelsea get away with what they are doing and what is the actual punishment going to be for City if any of the hundreds of charges are proven
Chelsea are signing players on ludicrously long contracts 8 years in some cases! to get around FFP restrictions. The PL is supposedly looking for a way to block this loophole.
Another great video. Excellent content
Bruno G, Tonali & Maddison is a ridiculous midfield😐🔥
Maddison will play right wing, Joelinton/Willock on the left of the three midfield
Don’t see us getting Maddison & honestly not bothered tbh doubt he’d press the way Eddie wants
Maddison over big joe? I doubt many actual fellow fans would say that just yet😊
Would happily give Maddison a miss.
Bruno & Tonali yes please. I'm not sold on Madison at all. Fingers crossed they don't go 4 him
Great work whatculture man. Love your videos on Newcastle.
Great video!
Finally I understand the murky rules of FFP! Thank you 🙏
I'm not a Newcastle fan but for years they never really spent anything under Ashley so they should be able to buy who they want
FFP is just the “Big Six” pulling the ladder up behind them.
Not Liverpool we dont breach we are self sustained hence why city pisses us off
@@williamfarrell4754 No Liverpool are a well run club but being one of the best established clubs in Europe with a huge overseas following gives you a massive advantage over us. How can a club who are forced to spend less that others ever catch up ? FFP is a fix.
@@1574john i concur
Tonali £55m over 6 yrs = £9.18m / year
There is massive amount of revenue to spend before NUFC get close to the FFP limit
Not just the fee we pay the selling club, but wages also need to be factored in so adding another £8m or so per season to the player himself means £17m per season for FFP calculations.
Finally I understand!! well done bud.
Nice vid mate
So for example if they have 100M like you said. They've just signed Tonali for 55M / 6 years = 9.1M per season... They still have 90M to spend?
Yes, technically. But if they blow the whole budget on one year’s FFP like that then next year they’d be in serious trouble. So if it’s 100m and Tonali is 55, expect them to only spend another 40/50 on top of that (I think it’ll be nearer 150 by the end of the season though)
in theory yes, however. Lets say they do that with more players till they reach that 90M's. the following 6 years they can't spend unless their revenue increases and they sell players. That could an issue chelsea might run in to after last year. I expect them to total around 120 this summer (without sales) this would mean around 65M's left in the coffer
Newcastle need to do like ManCheaty and pay people under the table. Offer them 100million, announce 50 and pay them 50 under the table for the remainder of contract. The ManCheaty way works. Eddie could be the new pep😅
@@RobertTapiaMan City were bought before FFP was established so we’re able to grow commercial revenue before being restricted
@@peterelliott4922 commercial revenue 💀💀💀💀 talking as if your club has commercial success like Madrid or your big brothers
If Toon get Toonali as the premium signing be huge, but balancing it with 2 or three squad players to rotate in and out of starting 11 will be smart investing for the year with all the extra games. Keep lads that little bit fresher, reduce injury risks and health competition to keep peak form because you know lads behind you breathing down your neck ready to jump in given the chance.
This year be very interesting to see how year plays out if it’s a year progressed too quickly and if the extra burden of games catches up on squad as it has caught out so many teams not used to Europe and the need for deeper squad depth
Since they're not City or Chelsea ...expect to see FFP ensure that they can't compete
Thanks for this
Did you include extra funds earned for the 4th place league finish?
I'd be curious to see what happened if PIF took the Prem to court to challenge FFP as anti competition. If they threw a lot of money at the case, I wouldnt be surprised if FFP folded like a cheap suit under scrutiny.
Its absolute bs. Chelsea and Man City got away with it and then shut the door behind them. Just the top six trying to protect themselves, it against the rules now but was OK 15 years ago, and could be ok again in 5 or 10 years time.
@@hankjones7054fair point, it's fairly obvious the protection the so called top 6 get. It makes you wonder if Newcastle were to break FFP would the prem let them off also as they are by far the richest of owners. Money talks...
FFP is just a means of saying "look, it's fair".
Whether it actually is or not, is a different story imo.
dear adam,
Canny video as always👍
"Softly, softly, catch 'ee monkey"👍😎
Regards,
Will the revenue gained from the planned fan area add towards the funds we accrue in the future?
Come on stop calling Newcastle the richest club which is measured on turnover and not the owners.
Best explanation of FFP I’ve heard. Thank you!
Most people reckon 100 to spend minus 50 for X,Y or Z leaves 50 to play with. That's the confusion
Newcastle definitely has top people in charge, currently. I have the most faith since the 90s
Pretty good video and explanation of FFP but you made the same mistake that others have made and think that Newcastle are spending 95% of revenue on wages. The 95% quoted in the accounts is made up of player fees, player wages and coaching staff cost.
The proposed extension to the East stand etc., to increase capacity to 62,500 will help to increase revenue but it's those new commercial deals that are probably more important.
Correct. Adding 10000 seats is worth an extra 2 million a year but will cost 10 to 30 million to do. Makes no sense from a business perspective but adding a 2 million a year sponsorship deal costs zero and makes the same amount. If NUFC really want to maximize revenue what it really needs is a whole new stadium with 90k seats somewhere else close by.
@@bournmouth5613 Adding them won't go against Newcastle in FFP term's though, you do know that right +
@@bournmouth5613?
FFP the only club it seems to apply to is NUFC
Be quiet😂😂😂 new money club
Might wanna ask Chelsea the same question
Adam Cleary is a welcome surprise
Ashley was a disgrace ( not sure Bruce should take much of the blame ) - Don't care where the money comes from, it's great to see NUFC doing great
That 70 mil is multiplied by the contract length so it’s say, 350 amortised.
I’m glad our owners are now going to spend like we did in the pre Ashley era
Long story short…FFP is stupid. You can’t let teams like City and Chelsea spend whatever they like for years on end and then suddenly change the rules so others can’t bridge the gap
Can you do one explaining how Chelsea spent as much.
Also one explaining how despite Man City breaking FFP on over 100 counts they still have yet to receive ANY sanctions.
That hasn't been proven yet.
Also clubs can spend whatever they want they just can't have losses of I think around £100mill over a 3 year period. So if you sign a player on 8 year deal each year their value depreciates which you can write off... not to mention chelsea have a whole roster of players they can sell reducing their losses as well as youth players which are pure profit.
Also Abramovic also wrote off the debts he held against Chelsea before he left
When a transfer happens, the buying club has to pay the negotiated transfer fee in full or in installments as per agreement. However when putting in the figures in the accounting books, the transfer fee can be divided by the number of years of the contract length. Chelsea gave 8 year contracts so if the transfer fee was 80 million, divided by 8 meaning only 10 million would be counted in the present year's financial books.
So a £60 - 70 million budget is 5 players at £60 million pounds each? Each costing £12 million each per season? Over a 5 year deal.
Wait so Spurs can spend 400 Mil without breaching FFP but they choose to spend less than half of that? Also 60 Mil on Richarlison?? That ownership is so weird man, they should be near the top not 8th 🤣🤣
My late brother had 10 Newcastle shares. He passed away before the bankruptcy and his widow was advised the shares were worthless after which Ashley stepped in and got the club for free. Any other ex-shareholders on here who got ripped off? Ashley should reimburse those fans now he's made a tidy penny.
The previous 2 seasons net spend isn't completely accurate if like they say, we are paying for players over the length of their contracts
I thought stuff like a stadium and training ground didnt count towards ffp?
Craig hope the "in the know" says £75 only to spend....yh right 😆 🤣 😂
Could be true with the amortisation approach - if Tonali is about 10m a year, Maddison could be 10m a year etc etc. We could in theory only spend 75m this summer but just leave ourselves with further instalments to pay over the next four or five years.
So what can they basically spend every window? Regardless of top 4 or not.
A lot of Ashley’s transfers were paid up front in full. Joelinton, I recall was one of these. So his 6 year contract in terms of transfer fee is zero. I can’t remember who else arrived at that time too, but they’re ,I Kelly to have been cash up front deals. So the legacy payments will not impact our current spends.
If that's true then Joelinton is a prime candidate to be sold for up-front value, and replaced with an equivalent player over a staggered 5 or 6 year deal. Maxi and Almiron probably come in the same bracket, FFP is encouraging us to offload great players before we can grow, which seems messed up. What we really need is a few superstar kids able to step into the first team, like the other Champions League clubs and Liverpool seem to produce. We've got Kuol and Minteh to come down the line, but hardly a conveyor belt yet.
@@stephenderry9488 I wouldn’t sell Joelinton, there’s so much more to come from him. Maxi, is a great player, but only very occasionally. I’d sell him, but as someone commented, the teams that can match our valuation don’t want him, and the teams that want him can’t afford him. There was a link with AC Milan, so perhaps the Tonali deal actually involves Maxi moving to Italy.
I’d love to see Pacquieta come to make a Samba midfield option. It’s a shame we didn’t pick him up when he wanted to come. In my mind, Pacquieta is a hundred times better than Declan Rice and was easily WHU’s best player.
@@albertol1529 I wouldn't sell any of our current first team squad, but as this video makes clear it's very hard to break into that top tier under FFP if you don't keep selling and buying. The best way round is to invest in youth and just wait, which we're doing too, but we want to compete in the CL and PL straight away, not just make up the numbers. (Ironically "making up the numbers" seems to be City's get-around!)
@@stephenderry9488 Check out the current Deloitte Money League (2023). It covers the previous season, 2021/22. NU has a pathetic commercial income of only £37m p.a. due to a lack of ambition by MA. It’s a fraction of the other EPL clubs in the top 20. This new consortium will tap into the potential and next DML (2024) we’ll be over £100m for commercial and up from 20th place to 11th or 12th.
i brought my horse a painting of a zebra so in ten years I can say it's a photo of when he used to play for newcastle!
Positive comment
Can you do video about barca ffp situation
3:13 SANTI!!!!
They've just gone ahead and bought Livramento.....this club is incredible. Szoboszlai next.
Szobo to LFC 😂😂😂😂YNWA he wants pool NOT toon soz o
@@williamfarrell4754 yeah...Franca/Cherki/Guler/Wirtz then.
Newcastle shouldn't get bogged down by not getting a player.
If Newcastle hire the same lawyer's as Manchester city then its an open check book!!
So how can chelsea spend what they have ? Its not a thing theres a lot of loopholes
they were able to amortise the fees over 8 year contracts - UEFA now restricts amortisation to a maximum of 5 years
Just spend it!
Days of big spending over 24hours later spend 70 earos 😂😂😂
And... Sandro Tonali for 60 mill after the first week of the window.
£600m just like Chelsea. Only another £540m to go
I can see Newcastle spending 200M + this summer
Barca and Real Madrid... Hold my Amex
Imagine the price of players and wages if no European FFP existed? Keep FFP, do a Leicester!
Adam your percentages are all over the place 😅
Be a spend of about £150m I reckon
Depends they could sign a sponsorship deal worth 25mill a year over 5 years with Saudia or something
@@skp8748 not sure they could get away with that unless they sell stadium naming rights, they're getting 25m for a shirt sponsor, arguably the most valuable sponsor real estate behind stadium name. I think they already have a partnership with Saudia as our airline partner but they'll only be getting a few million for that as it's not a big deal that normally attracts large amounts if you get me.
Steve Bruce never had a chance
And then we got Tonali. Let them keep talking.
Why not a word about Arsenal ? Not a word about Chelsea ? Liverpool have just surpassed Newcastle and not a word there either. Man U plan as usual to spend much much more and nothing there either
Are you “Gareth from What Culture”? Sound identical.
I think Newcastle are really going to struggle next season. They're not used to playing twice a week.
lol!
literally played 3 times a week sometimes this season because of the fixture congestion following the world cup, stay off the powder
Next season will have a more relaxed schedule than last season with World Cup. Also their best run of form was during the most hectic part of the year. Eddie is brilliant at managing their energy levels
You wish you daft SMB
Meaning “I hope Newcastle are really going to struggle next season”
how much money can we spend?......yes
They’re gonna have to get rid of ffp if they don’t want all the big players to end up in Saudi Arabia
Who’s here after they just splashed 70m on tonali? 100m my arse 🤣🤣
If I supported anyone else I’d be very concerned watching this video!!
Or we can just loan all the players that have gone to Saudi Arabia, that's the trick!
That’s what I expected. Kante to get wedged and then come back cheapo.
literally as much as we want. because mike ashley never spent a penny lol the one thing ill thank him for. balancing the books
They won’t tell you how much they’ve got to spend it’s basic business why tell your competitors that. Smart people own Newcastle Utd
i tink dat a newcassel wile win a tribbel dis seeson cos honistely dey are a best in a brittan at da minut . common georgy boyz rulez a yeh . ! , .,
But Chelsea can do anything they want?
their revenue is much bigger than ours and they have took huge risks by signing lots of players with the fees spread over 8 years - if they dont get good money for their clear out they'll be in a mess. The 'dodgy' moves to Saudi for a few of them are helping.
PIF sign Ruben Neves for one of their Saudi clubs while NUFC constrained by FFP. Do I smell a 2 year Neves - NUFC loan?
NUFC isn't really constrained champions league football, match day revenues, untapped sponsorship opportunities and not to mention they'll be offloading a lot players. They've played their cards right because the real ffp killer is wages and when players like trippier are admitting they signed for less money than they were on before and isak says arsenal offered better wages but howe convinced him of his role... the Saudis are playing the smart game.
@@skp8748 Players like Wilson, Murphy, Schar are more value to us on the pitch than for whatever fee we could get for them, well frankly I'd say the same about Miggy, Joe7, Longstaff and even Maxi, even though the transfer fees would be bigger. Every time you bring in a new player there's a chance it doesn't work out, the guys we have are proven performers. The players we offload won't bring us much in the way of transfer fees, Shelvey and Wood were the low-hanging fruit.
They can spend as much as they want.
Then we pretty much sign Tonali for 70m 😂
how do they get around the 'club is sponsored by the same people who own the club' why not just spend infinite money on the shirt sponsor (exactly what they've done) and say 'aCtUaLlY wE mAkE a PrOfiT'
cap the amount that sponsorship can be worth.
I'm a Toon fan and it is dodgy that it's allowed but if Prem feel they're being paid over market value they'll likely investigate it for FFP breach. As he mentioned we're still getting much less than the likes of Spurs as we're new to the CL but it'll go up, it's so weird allowing owners to sponsor shirts though.
It's not against the rules to sponsor yourself but there are limits to how much you can do it
Nice video but there are plenty of ways around FFP. Saudi money is one.
Oh we need to sell a player?
Sell Almiron for £40m to Saudis, ASM £60m etc. These are slightly inflated fees but no one can stop us flogging players to Saudi clubs. We could also loan players like Neves on 2-year deals.
I'm not saying we're going to do all these things but if the right deals come along, we will definitely look into them.
The main issue with players is convincing the very best to come. Barella is world class but we can't convince these players yet. The step just below them like Tonali seems about our limit so maybe a Szobozlai or that ilk is the best we can get right now.
They can also loan players from Saudi clubs, with the Saudi clubs covering a percentage of the players salary, 80% for instance.
@@Thaitanium73 This isn't happening. Stop it.
it would be scrutinised heavily if we did that, don't think they want to take any unnecessary risks, there'll be much more low profile ways of cheating the system lol
@@dddgtsd What rules state that it's cheating the system?
@@Thaitanium73 I’m saying if they’re gonna cheat the system and find loopholes in ffp I imagine they’ll find much less obvious ways which will draw scrutiny and our risk punishments…what was your question sorry? I don’t follow
Financial Fair Play is a F’n joke!
What if Newcastle United getting relegated after one season
or they will break the FFP and pay the fine
Howe well
Just look at Chelsea, FFP it's a joke. Newcastle will spend well above 200M.
We are FOOKIN MASSIVE 🇸🇦🇸🇦🇸🇦
You misspelled 'AVERAGE' 😂
🙄
Newcastle will be a title contenders next season maybe will be even fighting with City for the top from the look of the midfield as well as other areas basically they are complete team just need to add some good bench and a CB and a winger then they will be ready to face the City.
We can spend whatever we want as long as we pretend to sell 5 million shirts in Saudi Arabia!! Job done
Thats not how it work. Castore pay us 5 million a year for the shirt. They could sell 1 billion shirts and we would still only get the 5 million.