Pay cuts

[Dave]

Always wonder how the media know exactly how much a player is paid and their contract details.  Surely this is confidential information  and all of the figures and clauses bandied about are just guesswork?

 

They look in bins.

 

http://img504.imageshack.us/img504/6425/johnriiseliverpoolfootb.jpg

[Taylor Swift]

Our turnover in the past year was £100m.

 

Of this, £40m came from TV money. We get a parachute payment of £12m and maybe £1m for TV money in the CC, so we're down £27m in terms of turnover. That leaves estimated turnover at £73m.

 

Match day income has generally been around £30m per year. I'm just going to say that we lose 33% based on reduced ticket prices and reduced gates. So our match day income is expected to be around £20m.

 

That now leaves estimated turnover at £63m.

 

Our transfers have a net zero value (or around there, not varying too much, I think), so that doesn't affect turnover.

 

Our commercial turnover was at £26m. I'm just going to say that it'll drop down to about £20m. So our turnover is now £57m.

 

Our wage bill right now is £74m.

 

The normal ratio is 50% of turnover being spent on wages, which means we need to lose, easily, £45m from the wage bill.

 

Owen - £100k/week = £5m

Viduka - £60k/week = £2.8m

Smith - £60k/week = £2.8m

Barton - £60k/week = £2.8m

Duff - £60k/week = £2.8m

Martins - £60k/week = £2.8m

 

So far, that gets us only £19m. If we get rid of Coloccini, Geremi, Ameobi, Cacapa and Nolan, I think that takes about £8m-10m off the wage bill.

 

That still leaves us with a hefty wage bill of £45m. We'll then need to buy new players for the CC and pay them reasonable wages. In conclusion: our finances are fucked.

[Taylor Swift]

Llambias said they were going to lose £7m this year, if we had stayed in the Premiership. They've gotta make plans for losing about £25-30m, easily.

[Dave]

Ouch.

[sugoinufc]

Our wage bill will already be cut by £14 million before the start of the new season with contracts ending for Owen, Viduka, Gonzales, Cacapa and Lovenkrands.  That alone would have made our wage bill affordable again if we were still in the Premiership.  Obviously now we need to cut it by a further £15m-£20m.  I don't think we'd have any problem selling Coloccini, Barton, Martins, Smith and Gutierrez and they will all want to leave IMO.

 

That's another £14 million chopped off and I'd say that would leave us just about ok financially.  But if we can we should also do our best to get rid of Nolan, Duff, Geremi, Butt and Ameobi to save a further £12.5 million, then we'd have more then halved our wage bill (from £70m down to about £30m).  Leaving us with:

 

Harper, Krul, Forster, Soderberg

Enrique, Bassong, R. Taylor, S. Taylor, Beye, Kadar, Edgar, Tozer, Lough, Morris

Guthrie, Inman, LuaLua

Carroll, Xisco, Ranger, Zamblera, Baheng, Donaldson

 

Not surprisingly we'd definitely need some midfielders () and a Striker.

 

Best side (?)

 

Harper

Beye S.Taylor Bassong Enrique

R. Taylor New Guthrie Lualua

Carroll Xisco

 

EDIT: Decided Lovenkrands will likely leave and that I wouldn't even want to keep Ameobi and also that Butt is too s*** to keep at £45,000 per week if we can get rid.

[Wallace]

Well at least we should start getting some money in for Milner, Given and Zoggy.

 

[captainhaircut]

Our turnover in the past year was £100m.

 

Of this, £40m came from TV money. We get a parachute payment of £12m and maybe £1m for TV money in the CC, so we're down £27m in terms of turnover. That leaves estimated turnover at £73m.

 

Match day income has generally been around £30m per year. I'm just going to say that we lose 33% based on reduced ticket prices and reduced gates. So our match day income is expected to be around £20m.

 

That now leaves estimated turnover at £63m.

 

Our transfers have a net zero value (or around there, not varying too much, I think), so that doesn't affect turnover.

 

Our commercial turnover was at £26m. I'm just going to say that it'll drop down to about £20m. So our turnover is now £57m.

 

Our wage bill right now is £74m.

 

The normal ratio is 50% of turnover being spent on wages, which means we need to lose, easily, £45m from the wage bill.

 

Owen - £100k/week = £5m

Viduka - £60k/week = £2.8m

Smith - £60k/week = £2.8m

Barton - £60k/week = £2.8m

Duff - £60k/week = £2.8m

Martins - £60k/week = £2.8m

 

So far, that gets us only £19m. If we get rid of Coloccini, Geremi, Ameobi, Cacapa and Nolan, I think that takes about £8m-10m off the wage bill.

 

That still leaves us with a hefty wage bill of £45m. We'll then need to buy new players for the CC and pay them reasonable wages. In conclusion: our finances are fucked.

 

Good post. I was thinking though, if our wage bill is 75m, the players must be on more than we think.

 

If you take away the players listed above, the players left cannot be getting paid 45m. It cannot be right. So Viduka, Duff, Colo etc must be on more.

[Guest firetotheworks]

Cant we put a player on the transfer list regardless of whether they want to stay or not?

 

If thats the case then surely its a case of 'take a pay cut or you're up for sale'?

[binnsy]

Cant we put a player on the transfer list regardless of whether they want to stay or not?

 

If thats the case then surely its a case of 'take a pay cut or you're up for sale'?

 

If a player is under contract and doesn't want to leave then it'll be very difficult to shift them,  look at Duff, already come out and said he wants to stay, he's on something stupid like 70k per week, we can't afford that in the championship.  How many teams are going to come in and pay say £5m and give him anywhere near what we're paying him.  As he hasn't asked for a transfer, he'll also be able to claim a "loyalty" bonus from us when he leaves,  the type of bonus that almost scuppered the Barton transfer until we paid it!

 

Shifting the high earners on long contracts is going to be the hardest thing for the club this summer and could make bringing players in difficult as a result, bearing in mind we are about to have our shortest pre season in years we could be in trouble.

 

We may even have to resort to paying up contracts like West ham did with Ljungberg,  they paid him £3m last summer to leave the club!!

[Taylor Swift]

Our turnover in the past year was £100m.

 

Of this, £40m came from TV money. We get a parachute payment of £12m and maybe £1m for TV money in the CC, so we're down £27m in terms of turnover. That leaves estimated turnover at £73m.

 

Match day income has generally been around £30m per year. I'm just going to say that we lose 33% based on reduced ticket prices and reduced gates. So our match day income is expected to be around £20m.

 

That now leaves estimated turnover at £63m.

 

Our transfers have a net zero value (or around there, not varying too much, I think), so that doesn't affect turnover.

 

Our commercial turnover was at £26m. I'm just going to say that it'll drop down to about £20m. So our turnover is now £57m.

 

Our wage bill right now is £74m.

 

The normal ratio is 50% of turnover being spent on wages, which means we need to lose, easily, £45m from the wage bill.

 

Owen - £100k/week = £5m

Viduka - £60k/week = £2.8m

Smith - £60k/week = £2.8m

Barton - £60k/week = £2.8m

Duff - £60k/week = £2.8m

Martins - £60k/week = £2.8m

 

So far, that gets us only £19m. If we get rid of Coloccini, Geremi, Ameobi, Cacapa and Nolan, I think that takes about £8m-10m off the wage bill.

 

That still leaves us with a hefty wage bill of £45m. We'll then need to buy new players for the CC and pay them reasonable wages. In conclusion: our finances are fucked.

 

Good post. I was thinking though, if our wage bill is 75m, the players must be on more than we think.

 

If you take away the players listed above, the players left cannot be getting paid 45m. It cannot be right. So Viduka, Duff, Colo etc must be on more.

 

That's true. You could probably bump up the 6 main players I listed there, and take off about £5m-7m more, and the other players, if we are able to sell them, would lose us about £15m, instead of £8m.

 

That still leaves our wage bill around £30-35m, which is still quite a lot, imo, especially when you factor in the new players we have to buy (since this calculation assumes we're getting rid of ELEVEN first-teamers). I think we'll be lucky to reduce our wage bill to about £40m, which is still 70% of turnover.

 

We need to get promoted right away or Ashley's going to have to dig even deeper into his pockets. If we do, somehow, miraculously get promoted, then the wage-turnover ratio drops to around 40% or so, leaving us some room to sign some better players to compete in the Premiership.

 

But, with the NR deal coming to an end and adidas probably not going to be our shirt makers, we're going to lose even more revenue after next season. It's so crucial that we're promoted in our first attempt.

[nkcgd]

http://www.dailymail.co.uk/sport/football/article-1187448/Meltdown-Newcastle-8217-s-71m-wage-nightmare.html?ITO=1490

 

According to this the wage bill is at £71m

 

WHO WILL GO AND WHO WILL STAY?

WORTH KEEPING:

 

NICKY BUTT £60,000 a week — a leader who will be needed.

 

STEVEN TAYLOR £40,000 — a proud Geordie who will want to make amends.

 

DANNY GUTHRIE £40,000 — will do well in Championship.

 

SHOLA AMEOBI £40,000 — Football League is his level.

 

STEVE HARPER £30,000 — deserves a run as No 1.

 

RYAN TAYLOR £30,000 — should pick up in lower level.

ON THEIR WAY:

 

MICHAEL OWEN £105,000 — out of contract, needs a new club.

 

DAMIEN DUFF £70,000 — says he wants to stay (yeah, right).

 

OBAFEMI MARTINS £70,000 — on the first plane out of Tyneside, never to be

seen again.

 

ALAN SMITH £60,000 — strangely has a list of clubs who want him.

 

MARK VIDUKA £60,000 — Aussie beaches beckon.

 

GEREMI £60,000 — odds on for a Turkish club who need a 40-plus player.

 

JONAS GUTIERREZ £50,000 — cost £5.6m but no use now.

 

HABIB BEYE £50,000 — one of few to leave with integrity intact.

 

IGNACIO GONZALEZ £50,000 — who indeed?

 

CACAPA £40,000 — one of the worst Brazilians ever.

 

SEBASTIEN BASSONG £30,000 — one of Newcastle’s few assets.

 

PETER LOVENKRANDS £20,000 — brief loan spell to end.

 

KEVIN NOLAN £50,000 — January signing which backfired.

HARD TO SHIFT:

 

JOEY BARTON £60,000 — who would be mad enough to buy him?

 

JOSE ENRIQUE £60,000 — cost £6m, which was £6m too much.

 

FABRICIO COLOCCINI £60,000 — he was frighteningly bad.

 

XISCO £50,000 — an expensive flop.

[Dave]

NICKY BUTT £60,000 a week — a leader who will be needed.

 

What the fucking fuck.

[Guest firetotheworks]

 

WHO WILL GO AND WHO WILL STAY?

WORTH KEEPING:

 

NICKY BUTT £60,000 a week — a leader who will be needed.

 

 

Oh for the love of fucking god! Is it us, are we wrong? Are we all fucking blind or something?

[Guest firetotheworks]

The comment on Cacapa man, fucking hell. 

 

 

That Enrique comment.  I feel like some sort of protective parent over Enrique. Blindly love the kid.

[binnsy]

http://www.dailymail.co.uk/sport/football/article-1187448/Meltdown-Newcastle-8217-s-71m-wage-nightmare.html?ITO=1490

 

According to this the wage bill is at £71m

 

WHO WILL GO AND WHO WILL STAY?

WORTH KEEPING:

 

NICKY BUTT £60,000 a week a leader who will be needed.

 

STEVEN TAYLOR £40,000 a proud Geordie who will want to make amends.

 

DANNY GUTHRIE £40,000 will do well in Championship.

 

SHOLA AMEOBI £40,000 Football League is his level.

 

STEVE HARPER £30,000 deserves a run as No 1.

 

RYAN TAYLOR £30,000 should pick up in lower level.

ON THEIR WAY:

 

MICHAEL OWEN £105,000 out of contract, needs a new club.

 

DAMIEN DUFF £70,000 says he wants to stay (yeah, right).

 

OBAFEMI MARTINS £70,000 on the first plane out of Tyneside, never to be

seen again.

 

ALAN SMITH £60,000 strangely has a list of clubs who want him.

 

MARK VIDUKA £60,000 Aussie beaches beckon.

 

GEREMI £60,000 odds on for a Turkish club who need a 40-plus player.

 

JONAS GUTIERREZ £50,000 cost £5.6m but no use now.

 

HABIB BEYE £50,000 one of few to leave with integrity intact.

 

IGNACIO GONZALEZ £50,000 who indeed?

 

CACAPA £40,000 one of the worst Brazilians ever.

 

SEBASTIEN BASSONG £30,000 one of Newcastles few assets.

 

PETER LOVENKRANDS £20,000 brief loan spell to end.

 

KEVIN NOLAN £50,000 January signing which backfired.

HARD TO SHIFT:

 

JOEY BARTON £60,000 who would be mad enough to buy him?

 

JOSE ENRIQUE £60,000 cost £6m, which was £6m too much.

 

FABRICIO COLOCCINI £60,000 he was frighteningly bad.

 

XISCO £50,000 an expensive flop.

 

They've plucked a few figures out the sky in that article,  Bassong is not on £30k a week, Nolan won't be on £50k and can't believe for a minute that Xisco will be on anywhere near £50k a week. Guthrie won't be on £40k and can't see us paying Gonzalez £50k a week when he's only here on loan,  cos there's no way he'd be on that much at Valencia.

[captainhaircut]

Those figures can't be right.

 

No way did we give Bassong 30k, Gonzalez is not on 50k cos Valencia won't be giving him 50k, Guthrie will not be on 40k.

 

I doubt the Enrique, Lovenkrands and Shola figures are right either.

[toontownman]

What a load of tosh, wildly exaggerated wages surely!

 

Harsh on Enrique aswell, all the better if he is hard to shift I'd keep him in a heartbeat. He will have no shortage of buyer IMO, granted we wont recoup 6m for him though.

 

Think its reality Nicky Butt will stay with us unfortunatley. Still I'd hope we at least give him a wage slash or leave ultimatum. I'd think he would be a good pro to have around the younger players next year and would be a solid player in the championship, unfortunatley I have been watching him play which contradicts that notion.

[Wallace]

Bassong is meant to be the lowest paid player in the squad so that's one figure that is way off.

 

And I cannot believe that even this club would be so stupid as to pay Xisco £50,000 a week especially as they were already moaning about the wage bill by then.  Likewise the figures for Guthrie and Enrique.

[Taylor Swift]

What a load of tosh, wildly exaggerated wages surely!

 

Harsh on Enrique aswell, all the better if he is hard to shift I'd keep him in a heartbeat. He will have no shortage of buyer IMO, granted we wont recoup 6m for him though.

 

Think its reality Nicky Butt will stay with us unfortunatley. Still I'd hope we at least give him a wage slash or leave ultimatum. I'd think he would be a good pro to have around the younger players next year and would be a solid player in the championship, unfortunatley I have been watching him play which contradicts that notion.

 

Add them all up and you get £1.16m/week. x52 = £60m.

 

We're still actually missing about £11-14m from our calculations. So either the board is being paid a lot, the kids are being paid a lot, or these guys are earning a lot more than we thought they were, in which it'll actually be easier to cut the wagebill. Let's hope so, anyway.

[Taylor Swift]

If you think Xisco and Bassong's wages are higher than they should be, then you need to add a lot more to Smith's, Owen's, Viduka's etc. to get our wage bill up to what it was in the financial report.

[Dave]

What a load of tosh, wildly exaggerated wages surely!

 

Harsh on Enrique aswell, all the better if he is hard to shift I'd keep him in a heartbeat. He will have no shortage of buyer IMO, granted we wont recoup 6m for him though.

 

Think its reality Nicky Butt will stay with us unfortunatley. Still I'd hope we at least give him a wage slash or leave ultimatum. I'd think he would be a good pro to have around the younger players next year and would be a solid player in the championship, unfortunatley I have been watching him play which contradicts that notion.

 

Add them all up and you get £1.16m/week. x52 = £60m.

 

We're still actually missing about £11-14m from our calculations. So either the board is being paid a lot, the kids are being paid a lot, or these guys are earning a lot more than we thought they were, in which it'll actually be easier to cut the wagebill. Let's hope so, anyway.

 

Surely the wagebill will also include bonus payments on top of those weekly basic figures (not that there will be many this year...), off-field staff wages from top to bottom and payoffs for the multitude of people we're constantly employing and sacking? Allardyce and his entourage, Keegan, Kinnear, Shearer, Dowie, Calderwood, Hughton, Wise, Llambias, Jimenez, Vetere, Mort, the tea lady.

[Wallace]

What a load of tosh, wildly exaggerated wages surely!

 

Harsh on Enrique aswell, all the better if he is hard to shift I'd keep him in a heartbeat. He will have no shortage of buyer IMO, granted we wont recoup 6m for him though.

 

Think its reality Nicky Butt will stay with us unfortunatley. Still I'd hope we at least give him a wage slash or leave ultimatum. I'd think he would be a good pro to have around the younger players next year and would be a solid player in the championship, unfortunatley I have been watching him play which contradicts that notion.

 

Add them all up and you get £1.16m/week. x52 = £60m.

 

We're still actually missing about £11-14m from our calculations. So either the board is being paid a lot, the kids are being paid a lot, or these guys are earning a lot more than we thought they were, in which it'll actually be easier to cut the wagebill. Let's hope so, anyway.

 

Surely the wagebill will also include bonus payments on top of those weekly basic figures (not that there will be many this year...), off-field staff wages from top to bottom and also payments needed to sack people?

 

That's what I was wondering - there are loads of backroom staff and 4 managers this year.  Is this included or is that purely the player's wage bill?

 

I seem to recall when the financial report came out a few months back that quite a high percentage of the wage bill was attributed to non-playing staff.

 

[Taylor Swift]

Actually, now that I think about it, the figures were for last year. So that won't include the three managers (but since we only fired one, that shouldn't affect things so much). The £74m also won't include Coloccini, Bassong, Gutierrez, Guthrie and the new kids signed this year. It'll include Emre, Rozehnal, Milner - those who left last summer. Yeah, the cost of sacking Allardyce is there but there's a chance that we still have to pay Keegan £9m so I'm not sure how that affects the total.

 

I'm not sure. I think it should still be around £70m. I'm not sure the backroom staff will be paid that much too. Maybe a combined £5m per season? That still leaves the majority of our first-team squad earning something like £60-65m, with the youngsters making up the difference left.

[Taylor Swift]

We haven't actually sacked any managers, so there's no real difference to the wage bill in how many we've had. We probably even saved a bit of money (!) because for a long period, Hughton was manager and coach. Just the way Ashley and co like it.

[Guest n4e]

It is worth remembering the example of Damiano Tommasi, the former Roma midfielder, who was so embarrassed at his ptiful injury record that, when the Serie A club offered him a year's contract extension he demanded a youth team players salary of €1500 per month.