Newcastle’s spending power so far this season has been the envy of the Championship this season bringing success to the Tyneside team so far under Rafa Benitez. However, this success has brought claims that United have ‘bought the league’ in addition to this many fans have claimed that Newcastle would not pass Financial Fair Play regulations if the Magpies were not to bounce back to the Premier League at the first time of asking. These claims are entirely fictitious however and here’s why.
To begin with let’s begin with the actual FFP regulations and how they apply to Newcastle taking into a account the spending done in the summer by Benitez’s side. Financial Fair Play was brought in by UEFA in 2009 to help combat clubs spending more than they earn in the pursuit of success which may lead them into serious debt which may cripple a football club, in simple terms it was to prevent cases such as Leeds and Portsmouth from ever happening again. On the face of it FFP sounds like a good idea however many have attacked with being put in place to keep Europe’s elite at the top of the pile forever and stopping ambitious smaller clubs from achieving their goals. Whether you agree with this viewpoint or not, FFP keeps spending in line and the most severest penalty can be expulsion from European competitions. Basically, FFP is worked out through the working out the outgoings of a club over the income in which a club receives with the exception of money which is spent on infrastructure, training facilities or youth development. This simply means that a club needs to carefully balance out its finances, UEFA does not shy away from handing out fines with clubs such as Fenerbahce and Dinamo Zagreb being hit with fines and spending restrictions.
So this leads us to our point, many opposition fans from around the Championship have accused Newcastle of somehow being threat of being at risk of breaching these rules usually through the medium of Twitter however this couldn’t be further from the truth. Let’s first look at Newcastle’s overall net spend from the summer, opposition fans point to the fact that the Magpies overspent in the summer on players and paid a substantial amount of money out on players. They may have a point with this as Newcastle did spend a lot of money on players last summer believed to be around £54.7 million which is an awful lot of money with winger Matt Ritchie the most costly at £10.2 million according to Transfer Markt. However, when we compare this to those leaving Tyneside it quite a small figure compared to the £85.7 million coming into the club according to Transfer Markt. Overall, this leaves Newcastle in substantial profit therefore there is no risk of failing to comply with FFP regulations unless United were to spend over that in January with no players departing St. James.
Others have branded Newcastle, Parachute Payments United on Twitter however United have only received £25 million from this by far not enough to meet the fees which were paid out also these are mainly used to support the clubs in question from the lack of TV money which they will receive due to the drop down to the Championship and not for the transfer of players. To continue, if United were to be promoted this season, they would forfeit the rights to the rest of this money which would be paid out for the remaining three seasons of parachute payments. To make things better for those who are desperate to see the Magpies fall flat, they would receive an equal share of this money between themselves. You are welcome.
So, in conclusion, United cannot be accused of buying the league careful financial planning on the part of the board has put us in the position in which there is money to spend, perhaps one of the only benefits to Mike ashley’s reign over Newcastle. Those who believe that Mike James Wallace Ashley would put himself in the position of being under risk of being heavily fined by UEFA are sadly mistaken and perhaps opposition fans may be facing a slight bit of jealousy due to the team’s success so far and hopefully this will continue.