10 Newcastle United Rumours That Need To Die Immediately

7. Newcastle Cannot Compete With Southampton In The Transfer Market

The Rumour All down to the club this one, who seem intent on under-playing the finances: because everyone else overspends on new players, Newcastle are not in a position to compete with the likes of Southampton, Swansea, Everton and Villa in the transfer market. The Truth Newcastle currently don't just live within their means, they live well within them. Because of the financial make-up of the club, incoming transfer fees are used to cover ongoing operating costs, such as the new training ground as well as player acquisition and wages. For some reason, the turnover of the club seems to have decreased despite an upturn in TV revenue, lower costs (thanks to lower wages) and demanding up-front fees. Something is amiss, as independent accountants (usually Newcastle fans) who look at the accounts generally tell us. Where is all the spare money if it's not going to the owner? The simple fact is, if Newcastle were able to channel the sponsorship money that would come in from selling in the stadium, and the retail division of the club (assuming it was actually performing as it used to), there would be more money as well. If that was the case, and the club operated still within its means, there would be room to spend more in the transfer market, thanks to higher turnover than clubs like Villa, Southampton and Everton. And come to think of it - if all of those clubs were overspending, they'd be facing fines from FFP regulators, so it seems unlikely they are.