Newcastleclaret93 wrote: ↑Fri Apr 16, 2021 10:14 pm
I think it as per what Chester explained on one of the money threads the other day.
We did not and we do not currently have owners that can pump any of there own money into the club. So any transfers have to be funded by the club.
Signing players worth 15m on a season basis is nearly impossible when your player wages make up more than 70% of revenue. To be able to sign players of that value or player wages would have to drop to 45-50% similar to Spurs.
Let’s see what the new owners plan on doing but anyone expecting large sums of money to be thrown around will probably be disappointed
We’ll have to see, but I’ll be very disappointed if the ALK takeover does not see new investment brought in to the club to improve our financial strength. I am hopeful rather than expectant, but if Garlick has sold out to a group that have taken us in to debt, used up some of the cash reserves buying his shares out and have no plan to raise funding needed to invest, it will have unquestionably been a very bad deal for the club and frankly a quite shameful act by him given his statements about him being a custodian, ensuring sustainability, etc.
Alan Pace made some great statements on the initial takeover - that he doesn’t expect SD to be disappointed, that he’d under promise and over deliver and that he wanted to move the club forward. They may just be empty words, of course, but if he’s not going to invest, I can’t see the sense in buying Burnley - a brilliantly run stretching its business model to the limit is a pretty risky purchase unless he felt he had the capacity to provide the funding needed to take the club to the next level. He’d have been better buying a “sleeping giant” from the lower leagues otherwise.
All that said, our cash pile has grown ~£15m per season for the last three (removing the PL advance in the last accounts). I accept that some of that will have been generated from past player sales, some will have gone on the takeover, and that a lot may now be needed to absorb Covid impacts, but even without investment I can’t imagine there won’t be enough to invest in a £15m player... especially with £0 net transfer debt.
If there isn’t, Dyche will be off. He won’t hang around whilst he has offers from other clubs that will be prepared to invest. If Pace’s plan involves losing Dyche then good luck to him.
But my broader point is that PL players cost money. The top clubs are spending £70m+, middling clubs around £30m. That may adjust due to Covid, with smaller fees and more of them being deferred in to the future, but if we can’t even stretch to half that amount, we don’t really deserve to be at the table... and won’t be for long.