Finance guru: Newcastle United have just taken ‘£10m’ hit after financial news from United States
Newcastle United may have missed out on as much as £10million following the last-minute cancellation of the Ohio Cup.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the controversy surrounding the scrapped pre-season tournament in the United States.
Newcastle were due to be joined by Wolves and two unconfirmed Spanish sides for the mini-tournament in July.
But the Daily Mail reported last Tuesday (17 May) that the event has been cancelled by the organisers without any explanation.
The Magpies’ new Saudi owners are desperate to boost their revenue in order to fund greater recruitment spending.
And Plumley explains that the bad news from across the pond will be “very disappointing” and financially damaging.
“It is a blow,” the Sheffield Hallam Universit expert told Football Insider’s Adam Williams.
“They aren’t going to close the gap on the top four any time soon but they are trying to diversify and grow in other areas to boost their revenue and bridge the gap.”
“This is really important for clubs like Newcastle who are going to be on the threshold of smashing the glass ceiling in future years.
“It might not be in the 20s or 30s of millions but it could be, maybe, £10m or so.
“A lot of planning and operation stuff goes into it. There is strategy and branding all tied into this. To have it cancelled without much in the way of the reason is very disappointing.
“They will now have to reset their planning, so you can understand the reaction.”
Newcastle finished 11th in the Premier League in 2021-22.
They concluded their season with a 2-1 victory at Burnley last Sunday (22 May) that relegated the Turf Moor side.
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