Who knows where Newcastle would be now if not for Ashley
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It's frightening to think where Newcastle would be now if their £111m debt was owed to a bank instead of Ashley
Newcastle fans wondering if Chris Hughton will be given a massive transfer pot this summer have their answer in the latest club accounts.
Figures for the relegation season ending June 2009 show that the club owes Mike Ashley £111 million. That cost is on top of the £133 million Ashley paid to buy the club shares from Sir John Hall and Freddy Shepherd. In short, buying Newcastle has so far cost Ashley £245 million.
Look deeper, and as of last June, before the impact of relegation kicked in, Newcastle had a £35 million overdraft and bank loans of £3 million,
The wage bill, which has since been slashed, stood at £71 million, a dangerous 82.6per cent of turnover. And Ashley had put in two loans this season of £25 million and £11 million - effectively his personal gamble to keep the club running, keep a highly paid squad together - and get the club promoted first time.
The numbers are frightening. Had a bank, rather than Ashley, been owed £111 million, and decided to call in the loan, who knows where Newcastle would have been now. Ashley has changed the terms of his loan to the club and it is now "payable on demand".
This is not to promote Mike Ashley's role. But it illustrates that splurging cash on a new team for the Premier League this summer would be reckless. New signings are needed, of course, but not desperately enough to put the club's finances in peril.
What Newcastle need this summer is clever, astute buys, including a goal scorer with pace. Hungry young players with potential. And then to pray that Hughton is correct when he says players who were relegated have improved. And that team spirit and momentum will be worth points too.
An apology in the Sunday Times this weekend also spoke volumes as to a tough summer ahead.
It stated that Ashley wishes to make it clear that he has not promised to spend £25 million on transfers as had been reported.
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i hope a richer ower can be found.
no americans please.
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well, without ashely, they can alway join S league mah