Newcastle are setting themselves up for an enduring legacy of failure after the latest financial revelation surrounding the club.
The Times notes the rationale behind this, detailing a prevailing belief that relegation clauses would weaken the Magpies’ hand in the transfer market.
Discussing internal policy at Newcastle, the report claimed:
‘Newcastle’s policy has been to avoid such clauses to prevent potential signings from being put off. It means that Newcastle, who are only one point outside the relegation zone, would have to carry their full Premier League wage bill into the second tier next season, if they go down, with top earners such as Miguel Almirón on £80,000 a week.
‘In their most recent published accounts, for the financial year ending June 2019, Newcastle had a player wage bill of £96.8 million. Since then they have signed Joelinton, Allan Saint-Maximin, Callum Wilson and Ryan Fraser.’
The added attractiveness of a lack of a relegation clause certainly makes sense in the short-term, given the added financial cushion it offers to footballers.
Newcastle’s financial accounts showed a staggering difference of £92.8 million in revenue from being a Championship club in 2016-17 to a Premier League club for the following campaign.
Without the lucrative revenue stream of Premier League TV income, expect a drop to have a deleterious effect on the sustainability of Newcastle’s financial approach.