Burnley hit £60m jackpot as Newcastle count cost of drop

Top-flight football returns to Turf Moor while Tynesiders face £50m loss next season

On a day when Burnley were celebrating their return to the top flight of English football for the first time since 1976, and the £60m bonanza that their promotion brings, Mike Ashley's Newcastle United were assessing the alarming cost of dropping into the Championship. Even taking into account so-called parachute payments, Newcastle's income is estimated to fall £50m in the first year alone.

Such is the economic disparity between the Premier and Football Leagues, the price of success and failure is vast. The £35m minimum per season awarded to top-division clubs from television revenues is in itself huge, but the top-heavy nature of the squad at Newcastle means the club are expected to feel the financial loss even more than Burnley the benefit. The newly promoted club can plan this summer for their enhanced recruitment but Newcastle did not budget for relegation – there are no relegation clauses in the contract of players, even those bought as recently as January.

Newcastle's annual wage bill is £70m and owner Mike Ashley has said that is the fifth highest in the top division. But one of Newcastle's biggest problems is that this is now a devalued playing staff earning the same wages. Losing Michael Owen and Mark Viduka – both are out of contract – will ease the burden a little, but Newcastle need to cull many others. It was said yesterday that the club had 15 players earning more than £50,000 per week.

If this is correct then it could come to be known as Newcastle's goldfish moment. The Leeds scenario terrifies Tyneside. Possible financial implosion would affect managerial plans as well, but the figures show that even without economic instability, it is difficult for relegated Premier League clubs to bounce back within the two seasons of parachute payments. Five clubs in the last five years alone have dropped from Premier League to League One. Eight ex-Premier League clubs will start next season below Championship level. For that reason perhaps Burnley chairman Barry Kilby was not getting carried away with the prospect of sudden riches, although he believed the club would, understandably, be stronger for it.

He said: "We've got to get used to having that money. I will sit down this week. We're going to do our damnedest to stay up. We've got to manage our budget. I don't think it'll change. Our character is what it is.

Owen Coyle, the Burnley manager, said: "I've spent £2.75m on players. Now we need to add to the squad and we have a terrific spirit, but if we finish fourth bottom next year it will be better than where we are now. It's a challenge we'll relish."

Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine
Letterman's final Late Show: Laughter, but no tears, as David takes his bow after 33 years

Laughter, but no tears, as Letterman takes his bow after 33 years

Veteran talkshow host steps down to plaudits from four presidents
Ivor Novello Awards 2015: Hozier wins with anti-Catholic song 'Take Me To Church' as John Whittingdale leads praise for Black Sabbath

Hozier's 'blasphemous' song takes Novello award

Singer joins Ed Sheeran and Clean Bandit in celebration of the best in British and Irish music
Tequila gold rush: The spirit has gone from a cheap shot to a multi-billion pound product

Join the tequila gold rush

The spirit has gone from a cheap shot to a multi-billion pound product
12 best statement wallpapers

12 best statement wallpapers

Make an impact and transform a room with a conversation-starting pattern
Paul Scholes column: Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?

Paul Scholes column

Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?
Season's finale brings the end of an era for top coaches and players across the continent

The end of an era across the continent

It's time to say farewell to Klopp, Clement, Casillas and Xavi this weekend as they move on to pastures new, reports Pete Jenson
Bin Laden documents released: Papers reveal his obsession with attacking the US and how his failure to keep up with modern jihad led to Isis

'Focus on killing American people'

Released Bin Laden documents reveal obsession with attacking United States
Life hacks: The innovations of volunteers and medical workers are helping Medécins Sans Frontières save people around the world

Medécins Sans Frontières's life hacks

The innovations of volunteers and medical workers around the world are helping the charity save people
Ireland's same-sex marriage vote: As date looms, the Irish ask - how would God vote?

Same-sex marriage

As date looms, the Irish ask - how would God vote?
The underworld is going freelance: Why The Godfather's Mafia model is no longer viable

The Mafia is going freelance

Why the underworld model depicted in The Godfather is no longer viable