Relegation from the Premiership is a big blow for Newcastle United’s devoted fans. But it is also a big financial blow as well. The cost of demotion from the Premiership is usually estimated at £50m – £60m. Newcastle are calculated to have the fifth largest wage bill in the division and a fire sale of players is likely to follow. Magpies owner Mike Ashley put the club up for sale for £300m last September. He abandoned the sale in December saying he would have sold the club if it had attracted an offer of £250m.
Relegation from the Premiership is a big blow for Newcastle United’s devoted fans. But it is also a big financial blow as well. The cost of demotion from the Premiership is usually estimated at £50m – £60m. Newcastle are calculated to have the fifth largest wage bill in the division and a fire sale of players is likely to follow. Magpies owner Mike Ashley put the club up for sale for £300m last September. He abandoned the sale in December saying he would have sold the club if it had attracted an offer of £250m. He bought Newcastle for £134m in 2007 and invested another £110m in the club. There has been speculation that a consortium led by US businessmen would be interested in pitching a more conservatively priced bid for the club if it had survived its relegation battle.
Update: Newcastle a Snip at £100m – 31/05/09
Mike Ashley is to offer Newcastle United for sale with a £100m price tag. This is £34m less than the price Ashley paid for the club two years ago. Since then he has put in £110m of his own money to reduce debts. He was initially seeking £400m for the club but its value has been slashed by relegation. There has been some interest from Nigeria and South Africa, but no firm offers.
Related Articles
Big Losses At Newcastle – 24/01/2009
The depth of Newcastle United’s financial problems has been revealed with the first set of accounts from Mike Ashley’s spell as owner…
Madoff Scandal Cost Newcastle Deal – 11/01/2009
An American investor was closing in on purchasing Newcastle United until the Bernard Madoff scandal…