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Newcastle United: Report hints at financial implications of potential relegation
A report from The Times has explored the extent of financial damage relegation can cause for Newcastle United.
The Magpies find themselves 16th in the Premier League and only a single point ahead of 18th-placed Fulham, who have played a game more. They are also one point ahead of Brighton and find themselves in the middle of a relegation scrap, but failure to avoid the drop could have disastrous financial consequences.
NUFC players don’t have relegation clauses
A report from Martin Hardy in The Times has talked about the finances which can be affected by Newcastle’s potential relegation. It stated that the Magpies could witness ‘devastating’ financial consequences, as the club’s players don’t have relegation clauses in their contracts.
Will Newcastle get relegated?
Yes
No
The Tynesiders have previously done that to avoid signings from being deterred from joining and, as a result of this clause, the club would have to take their Premier League wage bill to the Championship. The report added that their wage bill stood at £96.8m in June 2019, but since then they have roped in Joelinton, Callum Wilson, Ryan Fraser and Jamal Lewis.
Clubs use relegation clauses to ensure that they manage the revenue drop in the absence of Premier League money, but the Magpies don’t have that in place.
Relegation could be disastarous for NUFC
While financial issues would likely crop up in case of relegation, it has been stated by journalist Liam Kennedy that dropping out of the Premier League could dramatically reduce chances of a potential takeover for the Magpies.
This clearly shows that they can’t afford to get relegated and could have severely damaging consequences, so Steve Bruce’s side need to turn their form around soon to avoid this unenviable scenario.
In other news, one Newcastle man could be set to return to the first team soon – read more here.
