Newcastle United were the biggest spenders in the Barclays Premier League last month, investing £28.5m on three new players. They appear to have taking a calculated risk that the signings will move them up the table. Not only are they paying high wages, they have not protected themselves financially in the event that they go down.
Newcastle United were the biggest spenders in the Barclays Premier League last month, investing £28.5m on three new players. They appear to have taking a calculated risk that the signings will move them up the table. Not only are they paying high wages, they have not protected themselves financially in the event that they go down.
When the club was last relegated, they also failed to insert relegation clauses in their players’ contracts, which contributed towards their loss of £35m of revenue in the Championship. Their losses would be much greater if they go down again.
Most of their relegation rivals have made automatic penalty clauses in the event of demotion a cornerstone of their contracts policy. Norwich City cancelled several potential transfer deals during the window because players refused to accept relegation clauses. Even Tottenham Hostpur insert relegation clauses in their contracts.