Newcastle United Could Face Financial Trouble If Relegated From Premier League
EPL Newcastle United has "not made provisions for relegation in all of the contracts" it gave to the players who arrived at St. James' Park in January, according to Martin Hardy of the London INDEPENDENT. The club "did not insert relegation clauses into all of the five deals that were given to the French players who arrived during a spending spree" which cost the club £31M ($48.1M) in transfer and agents' fees. However, despite an initial surge in the team's form, "results have tailed off" and Newcastle is "now in the middle of a relegation fight for the second time in five seasons." It fell to 17th in the Premier League table when Aston Villa beat Sunderland 6-1, "just five points above third-bottom Wigan Athletic." Its most recent accounts showed that the club's wage bill was £64.1M ($99.5M) -- but that was before the influx of new players -- against a turnover of £93.3M ($144.8M). That turnover, however, "would fall dramatically" should the club be relegated. The "one silver lining for Newcastle" is that relegated clubs will receive £48M ($74.5M) in parachute payments over the following four campaigns (INDEPENDENT, 5/2).