When Mike Ashley bought the club in 2007 for £130m and granted an interest-free loan of £100m in 2008 rising to £140m at present, he was immediately caught up in football's brainless bubble. There were 'PAs for PAs', an annual wage bill that reached 91 per cent of turnover and a flawed recruitment policy.
When Ashley arrived in the North East, annual interest payments and bank charges were a staggering £6.5m. That figure has been reduced to £212,000. The club save £200,000 a year using an in-house cleaning team at the stadium and the training centre, but make more money outsourcing the catering in the hospitality suites.
Recently they won an award for reducing carbon emissions, saving £400,000 a year in power supplies. If an employee does not turn off a light or leaves his computer on after work, an alarm sounds in the facility manager's office so that they know who is responsible.
This is Ashley's business model, unashamedly brought in from the nerve centre of retail giant Sports Direct. He hates waste. When Ashley is not satisfied, he isn't afraid to pick up the phone or fire off an email demanding improvements. Now Newcastle continually review, rehabilitate and then reset.
Ashley works on an 80:20 principle, placing his trust in managing director Derek Llambias to oversee the administration and operation of the club (20 per cent), plus the football (80 per cent). Their popularity ebbs and flows, confusing outsiders because it rarely tallies with anything that is happening on the field.
Until recently, Ashley bought into the myth that Newcastle had to pay a premium to convince players to move to the North East. It drove prices higher and forced him to authorise bigger wages. After nearly five years in charge he will no longer succumb to temptation, trimming the wage bill to 60-65 per cent of turnover and fantasising about the unlikely day when it will be as low as 50.
With the exception of the team bonuses agreed with the squad at the start of the season, Llambias rarely commits to incentives in individual players' contracts. The strikeforce do not have a bonus for scoring or assisting in goals; and Newcastle's defence would not have been specially rewarded for their clean sheet against Liverpool, beyond their regular weekly salary. Occasionally, 'a 2' will be incentivised as part of his package to try to push his established rival out of the team.