Newcastle United could lose '£60m overnight' after Fri reveal - Dr Dan

By Dr Dan Plumley

17th Jan, 2022 | 5:00pm

Finance guru fears Newcastle could lose '£60m overnight' as new details emerge

Newcastle United must not overspend in their bid to beat the drop.

That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the Magpies’ investment dilemma.

Kieran Trippier and Chris Wood have signed from Atletico Madrid and Burnley respectively this January in Newcastle’s relegation arms race.

The Dail Mail reported last Friday (14 January) that Trippier was handed a £100,000-a-week contract, while Wood will take home £80,000 per week.

It is claimed that this puts the right-back and centre-forward at the top end of Newcastle’s pay scale without shattering their wage structure.

Plumley insists that the Magpies must strike the right balance between spending to beat relegation and damage limitation if they do go down.

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“You have to balance wages with the risk of relegation,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.

“Relegation would mean a £60m reduction in revenue overnight. Even if you finish bottom, the TV payment is £100m for the season.

“Your parachute payment for that first season after relegation is about £40m.

“Yes, they have got money to spend and are okay under FFP. They have got an ownership structure which could spend whatever they want at any time.

“But the broadcasting payment drops off a cliff after relegation. If you don’t get back up quickly, you lose your parachute payments and it gets even worse.

“The aim in the short term is to stay in the Premier League but you have to balance that with what happens if you are relegated.

“That’s where the wage structure comes into play. You can’t throw everything at it because of that risk.”

Eddie Howe’s side are currently 19th in the league table with just 12 points after 20 games.

They are next in action against Leeds United on Saturday (22 January).

In other news, pundit tells Newcastle United to hijack Christian Eriksen talks and complete signing after update today.