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Around SBN: Relegation Simulation: Rewriting College Football History

In a ranking of clubs from the big five leagues in Europe, Newcastle United came in 25th, generating revenues of £88.5m. There are other people in the world that are much smarter than I am about business and such, but it seems that the sustainable business model is well on it's way to standing on its own two feet.

3 months ago St Other Side of the Pillow 6 comments 0 recs  | 

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A few things that stand out

1) With six of the top 20 clubs in th “money league” being from the Premiership, making money is essential to having success in the league. Especially with the new financial rules coming into effect, its good to be in this position.

2) That said, money doesn’t equal success. I believe that when Newcastle was relegated it was bringing in money. I think it was the wealthiest second tier club in the world. Still have to be smart.

by 51dimes on Feb 9, 2012 9:08 PM GMT reply actions  

Found this on Wikipedia

Wealthiest clubs in world, according to Forbes

Newcastle was 16th in 2008, 19th in 2009. You know what happened.

by 51dimes on Feb 9, 2012 9:12 PM GMT reply actions  

Indeed...

It seems clear, though, that they have dumped many many of the high paying contracts (save for Alan Smith’s inexplicable loan move) for younger, lower earning and frankly better players. If I get a chance later on (after I go home from work) maybe I’ll try to dig out some of the expenditure numbers to see what’s what. I know that they were expecting to break even this season.

Coming Home Newcastle!

"Alcohol may be man's worst enemy, but the bible says love your enemy." --Frank Sinatra

by Other Side of the Pillow on Feb 9, 2012 9:19 PM GMT up reply actions  

From what I can tell

We are getting it done with players that are buying into a system and with some good finds through scouting. WIll lack of star power keep Newcastle from making it to Europe? I don’t know, the club can hold its own against the “big 4” and is in a position to make a play for Europe this season. I think it could be devastating for NUFC to make a big play during a transfer window and have it backfire.

by 51dimes on Feb 9, 2012 9:39 PM GMT up reply actions  

Undoubtedly.

It’s interesting that I saw this story when I got back as I was thinking about things financial (primarly the investment of the £35m for the former no.9 shirt). I think that we’re at a certain point, and truly we’re probably acheiving at the top of what we can expect from this squad, especially considering the long-term injuries that we have suffered. The difficulty of a self-sustaining model at this point (at least how I see it) is breaking past the point that we sit at this point. If we cash in on Cheik Tiote, for instance, we will have some money to invest into new players… but can you find better players at lower prices? Don’t get me wrong… if you bring in players that can approximate the level at which the departing players performed, you can reasonably expect to keep the status quo. I think that the right investments at the right price make sense… but I also think that we’re going to have to upgrade the overall talent still a bit more to give a bit of margin for when they’re not performing at the top of the expected results curve, if you know what I mean. Although how Mike Ashley has done it is often times questionable (even antagonistic towards the fans), we’re miles ahead of the financial mess that he originally acquired. Keep what you’ve got and get a little more.

Coming Home Newcastle!

"Alcohol may be man's worst enemy, but the bible says love your enemy." --Frank Sinatra

by Other Side of the Pillow on Feb 9, 2012 9:57 PM GMT up reply actions  

There is no doubt that the EPL TV deal is huge factor

But our matchday revenues must be up there.

by wuds100 on Feb 10, 2012 12:53 AM GMT via mobile reply actions  

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