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Contract Lengths

Discussion in 'Newcastle United' started by Darth Gogledd, Jan 25, 2013.

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  1. Darth Gogledd

    Darth Gogledd Well-Known Member

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    As the title says really. All our new signings have been given mega-long contracts.

    Is this due to the Enrique situation? It seems that ever since he left, every contract given has been 4 years or more, up to 6 1/2 years for Sissoko.

    To me it seems like the board must have great faith in the scouting system that these guys are worth it, cos to pay a flop for nearly 7 years is a very costly mistake (Xisco...). Either that or they are just so paranoid about losing players for less than they're worth that they're prepared to take that risk...
     
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  2. Boa

    Boa Active Member

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    It means we can enjoy them for a few seasons and still have time to sell them rather than lose them for nowt.
     
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  3. Obi Wan

    Obi Wan keeper of the peace
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    Agree! It ties in with the philosophy Mike set out to buy relatively young / cheap where possible and sell on for a profit. At least this way with long contracts we might see them for a few good seasons, OR get decent money to buy them out of the current contract. Seems good to me.
     
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  4. Agent Bruce

    Agent Bruce Well-Known Member

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    MA didn't get where he is without being financially aware.
     
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  5. Darth Gogledd

    Darth Gogledd Well-Known Member

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    Wouldn't it be more financially aware to give them a lower-risk, shorter contract though?
     
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  6. Obi Wan

    Obi Wan keeper of the peace
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    No, because then they get renegotiated more often - usually for more money. Or then get to walk on a free.
     
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  7. Obi Wan

    Obi Wan keeper of the peace
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    Mrs Obi has just confirmed it. I asked her whether short or long is best and she said definitely longer. She said she wished mine were longer, so I'm going to ask my boss for an extension tomorrow.
     
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  8. Darth Gogledd

    Darth Gogledd Well-Known Member

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    Ask her if a very long, but not very good one, is better than a slightly shorter but more effective one...
     
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  9. Obi Wan

    Obi Wan keeper of the peace
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    Apparently, shorter isn't the end of the world so long as it's fat.
     
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  10. Darth Gogledd

    Darth Gogledd Well-Known Member

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    Any contract which fits the words "Mapou Yanga-Mbiwa" must be pretty wide...
     
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  11. Albert's Chip Shop

    Albert's Chip Shop Top Grafter
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    Its good business
     
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  12. MrToontastic

    MrToontastic Well-Known Member

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    If you look at the contract length of each player, each one takes the individual player to around 28. This means if the player isn't sold for mega bucks we have still had the best years out of the said player. Smart business plan.

    Basically means we don't get stuck like Arsenal did with Nasri and Fabregas.
     
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  13. 2010 tops dog

    2010 tops dog Well-Known Member

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    Lets hope there is no get out clause like baas ie some one offers 7m its bye bye
     
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  14. Gordonthetoony

    Gordonthetoony Well-Known Member

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    The vast majority of our recent signings have sound pedigree's and were'nt picked via video. They are internationals already with long careers ahead so I for one say Ashley is sound in tying them down so we don't get another Demba Ba situation.
    If we were to transfer them tomorrow do you think Sissoko's value would be £2 million or Mbiwa £6.7 million, I think not so it's a win, win situation for me.
     
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  15. abc CissesCurriedGoat abc

    abc CissesCurriedGoat abc Well-Known Member

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    I think part of the reason of these long contracts is this. Since our scouting has paid off as shown, if we are in for the players and believe them to be suitable for us, why hold back on offering long deals? If we already think they'll be critical to our success in the long run, might as well tie them down to long deals. The risk is of course a Xisco or a Luque or Winston Bogarde situation or Marcelino happening. However if they feel they've thoroughly scouted the player and think they won't do a Marcelino on us, then there really is no harm getting a long deal on them.
     
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  16. NUFCBRONX

    NUFCBRONX Active Member

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    It's just smart risk sharing. NUFC is bringing in talent from non-EPL sides. Now they can either go on to be awesome and prosper - in which case NUFC can cash in/keep them - or they go anonymous and are all rubbish. It's a gamble basically. So what, at least in my opinion, the club is doing, is offering them a guarantee on the back end - which given our wage structure is not all that big - in return for a long contract which gives us the ability to cash in if they get all Demba Ba awesome. And of course, there's the added aspect that the we (our club) no doubt think our scouting gives the edge.

    It's just basically applying at little bit of finance brain to the transfer situation.

    Point being that there is no inherent downside to a small transfer fee, small wage, long contract. You are just pushing the variables around a bit to fit to a new model.
     
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  17. Warmir Pouchov

    Warmir Pouchov Better than JPF

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    He has to back his scouting system. If they do well, which is what he will expect, then clubs are deterred from just waiting out the contract. They have to pay top dollar. Obviously the risk comes from them not doing the business but I can't see the likes of Debuchy, Sissoko, Mbiwa failing to justify the outlay given their pedigree. Haidara and Gouffran are low level risks with the fees involved.
     
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