Newcastle defend lack of transfer spending this summer by claiming the club is run in a ‘sustainable manner’ after fans were angry that £20m Joe Willock was the only major signing
Newcastle United issued a lengthy statement on Friday defending their lack of spending in the recent transfer window and dismissing claims money has been taken out of the club as ‘wholly untrue’.
Fans were critical that midfielder Joe Willock was the only major signing, at a cost of over £20m and paid in instalments, while other Premier League clubs such as West Ham, Aston Villa, Crystal Palace and Norwich spent more.
But in a long statement, the club said Covid-19 had affected its finances.
It also said it is run in a ‘sustainable manner’ but not ‘at the expense of being ambitious’.
Officials claimed it had a net spend of £120m on players since the summer of 2019 – £160m spent and £40m in sales.
A United statement read: ‘Our commitment to being run in a sustainable manner, which secures the financial viability of the club, is a longstanding one.
‘This does not come at the expense of being ambitious, and it is built on the core principle that we will spend what we have.
‘The cash generated each year through matchday and non-matchday activities, plus any transfer fees received from player sales, determines how much is available to spend.
Despite reporting positive balance sheets in recent years Newcastle say: ‘In simple terms, there is one pot of money and spending in one area reduces the amount available for others.
‘This relates not only to first team playing squad expenditure, but to all other areas of the club.’
‘In a ‘normal’ year, our operating model would generate sufficient funds to enable us to make one or two quality first team additions, as well as investing in other areas.
‘This approach takes time and requires careful management and long-term planning, ensuring that we spend the money we generate wisely to benefit the club.’
Inevitably Newcastle have pointed to COVID-19 as a determining factor.
They said: ‘The last two years have been challenging, with Covid-19 having a considerable impact on the club’s finances and therefore the amount of cash we have available to spend. Internally, all parties have long been aware of the budgetary parameters under which we are operating.’
United also explained their policy on the Willock signing and said: ‘Ahead of the summer transfer window and having made a significant impact after arriving on loan in January 2021, Joe Willock was identified as the club’s primary target.
‘Once it was confirmed that the player would be available on a permanent deal, a collaborative decision was taken to pursue this option.
‘All parties were aware as to the implications for further squad consolidation, with the collective view being that securing Joe Willock was the right priority.
‘There was a shared understanding that further additions to the playing squad would be heavily influenced by player trading, both in terms of available funds and space in the squad.
‘The deal to bring Joe Willock to the club was formally completed on Friday 13th August 2021 and we are beyond delighted to have secured him.
‘Our preference to pay transfer fees up front, rather than spreading payments over several years, is well documented.
‘We believe this approach to be in the club’s long-term interests, giving the club far greater certainty and control over its spending in future windows and seasons.
‘In negotiating/securing this deal post Covid-19, we acknowledged the need to make an exception and, on this occasion, have spread the transfer fee over instalments.
A poor start to the season for Steve Bruce’s team has not helped the mood on Tyneside as the club are still in search of a first league win, while the ongoing saga of a failed takeover and fans wanting owner Mike Ashley to leave has added uncertainty.
Bruce’s side sit fourth bottom of the Premier League with one point, and face Manchester United at Old Trafford after the international break on September 11.