Newcastle United become first Premier League club to implement wage deferrals

SportsCafe Desk
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After many discussions, Newcastle United have emerged as the first club in the Premier League to have declared a temporary wage cut which is applied to all non-first team member staff. Amidst a difficulty to manage the cash flow, the club is unsure of their future under current owner Mike Ashley.

Monday marked the beginning of the much-anticipated decision of the Premier League clubs to implement salary cuts for their players and the staff at the club. The first club to do so has been Newcastle United with the relegation-threatened side the forerunners of this decision with the staff and players were informed via emails from managing director Lee Charnley. It will see them now fall under the government’s coronavirus job retention scheme.

The Guardian has reported that this will see them claim 80% of their wages, to a maximum of £2,500 per month. The club has already been dealing with the major cash flow challenge due to lack of £1m-plus gate receipts from home matches. The ones to fall under the larger umbrella of the scheme include all the scouts, academy coaches and workers at the charity foundation. 

Leeds from Championship had already announced their generous gesture which saw the first team players and executive members sustain wage deferrals. This would allow the non-playing staff and casual workers to receive their entire wages. Furthermore, the Guardian further reported that negotiations of Newcastle’s £340m takeover by a Saudi Arabian firm are also back on the charts.

The Premier League was notified of Saudi Arabia’s Public Investment Fund’s attempt to buy out the club’s owner, Mike Ashley. But even if Ashley were to accept that he wishes to sell the club and produce the necessary paperwork, all the processes would face an inevitable delay due to the COVID-19 pandemic.

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