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.