Newcastle Was Near a MeltDown With Debts

Chris Mort has revealed the ways in which the club were run under Freddy Shepherd and the old board but our new chairman was quick to point out his comments were not meant to be a criticism of the old board.

I’m sure that’s what Chris meant but he’ll learn fairly quickly that negative criticism and negative stuff in general is what the local papers want in order to sell their stuff. And the comment was to the Sun newspaper   🙁

Let’s see what Chris really said and what we can glean from this.


Newcastle Chairman Chris Mort – running the club a lot more professionally than previous regime

Newcastle United were said to be only days away from folding like a pack of cards before Mike Ashley rescued them with a £133M buy out.

Well that sounds a little bizarre but Newcastle Chairman Chris Mort has revealed how former chairman Freddy Shepherd let debts of £75M build up at Newcastle. Mort – a well schooled London lawyer and businessman – said that left the club on the verge of meltdown before Ashley’s purchase of the club in May.

Mort told the Sun newspaper today:

“We were surprised at how bad the financial position was — they were in big trouble.” “If the old board had not refinanced the club by the end of the financial year on June 30, it would have folded like a pack of cards.”

“They also spent sponsorship money before it had come in.” “All the cash from Northern Rock, which should have been paid annually, has already gone.

“Money was also borrowed against a deal with Adidas.” “We prefer to invest as the cash comes in — not before.”

But Mort was quick to add:

“I’m not criticizing the previous regime.”

“Their heart was in the right place as they were doing what they could to bring success to the club but we are approaching things differently.”

As we have said many times we think Mort has already put Newcastle on a much better footing financially and we are sure the club will be run in a much more professional way than Shepherd and company ran the club. We expect that Chris, following his strategic review of the club, has done lots of things – that fans will probably never see – to have the club run much more efficiently on many fronts.

We are extremely pleased with the way in which Mort himself is presenting a much more professional image of Newcastle United to both the press and the public.

Now we just need to start winning more games and things will be rosy again in the Newcastle United garden 😀

Comments welcome.

14 comments so far

  • ToonKing

    Sep 26, 2007 at 10:49 AM

    Comment #1

    Hmm that’s interesting, i didn’t know we were in that big of a trouble……….anyways glad Mr Ashley and Mort sorted it out , now let’s get back to footie and beat City 😉

  • adam

    Sep 26, 2007 at 10:52 AM

    Comment #2

    just glad mike came along. hopefully he was at the arsenal game last night, and now wants to invest money in players. how about signing the arsenal scouts. they seem to be outstanding. worth thier weight in gold if they constantly are coming up with a fabregas, denilson, toure, etc etc etc etc etc.

  • Craig Allen

    Sep 26, 2007 at 11:08 AM

    Comment #3

    Scouts are good, but are only one slice of the sandwich. I’m sure we’ll have structures in place that are conducive to breeding the likes of fabregas et al instead of buying them after they’ve gone through another club in another country’s youth academy. We’re still in the beginning stages but I have full optimism that we’ll be better at it than Arsenal in years to come and we’ll have more English players.

  • adam

    Sep 26, 2007 at 11:14 AM

    Comment #4

    i really hope your right craig. another shearer or ten would be nice 🙂

  • Marguerite

    Sep 26, 2007 at 12:18 PM

    Comment #5

    Be interesting to see what Freddie has to say about this, and sure as hell he will comment.

  • Steve c

    Sep 26, 2007 at 12:18 PM

    Comment #6

    Patience is the keyword. Chris Moort is sorting out the finances and BSA is sorting the football side. This will take time. Of course like every other mad Geordie i want everything to happen now, but thats not realistic. Things are starting to happen and are going in the right direction. Sam must be given at least 3 years. LONG LIVE THE TOON!!!

  • sirjasontoon

    Sep 26, 2007 at 12:53 PM

    Comment #7

    I think it is shocking that a bunch of kids beat us last night and then deflect the press with this rubbish, surely with international senior players we shouuld have won this game .
    I am worried that this season will be similar to the last one under GR,painful to watch,no end product and a team that plays dire football.
    I never seen the game last night but we where supposed to be just lumping long balls all around the park.

  • Ken

    Sep 26, 2007 at 1:29 PM

    Comment #8

    Arsenal (Kids) included seven internationals.

    I was at the game and we did not lump long balls all night.

  • Steve c

    Sep 26, 2007 at 1:43 PM

    Comment #9

    SIRJASONTOON calm down you will have a nervous breakdown if your not carefull. They might have been young but every one of those so called kids would get in almost any other premier league team. We also had three good chances onthe break and could have won the game with decent finishing.Take a few deep breaths have a mug of cocoa and calm down.

  • sirjasontoon

    Sep 26, 2007 at 1:45 PM

    Comment #10

    Cheers Steve,
    was just a bit narked we didn’t take our chances last night fella and felt that our experience would have shone through.
    Chin up and bring on man city 🙂

  • Magpie Neil

    Sep 26, 2007 at 1:49 PM

    Comment #11

    The new regime have already paid off some of that oustanding debt by only spending £10 million overall on transfers this summer. Probably more like £50 million in debt now. Even so im glad Ashley is in control as the long term future of the club looks a lot more secure now.

  • Duncan Disorderly

    Sep 26, 2007 at 3:08 PM

    Comment #12

    If Oba had just taken his chances we’d now be saying “Arsenal were great but naïve and BSA had the tactics just right”. What worries me is Oba losing his touch, playing 2nd string to Owen – we can’t afford to let a player with his talents stagnate 🙁

  • leo

    Sep 26, 2007 at 5:17 PM

    Comment #13

    ashley invested initially 30mil to refinance, and then a further 45mil to get rid of the debts, look on the website, ashley is like a big vacuum sucking up all our debts and making us clean again woop lol.

  • Sinead

    Sep 26, 2007 at 11:05 PM

    Comment #14

    “we can’t afford to let a player with his talents stagnate”..ya, same with Given. Martins should be playing ahead of Owen and Given is a lot better then Harper and should be playing. But it doesn’t matter, it wont matter how well they train how good they might play in a cup match, Sam’s his mind made up and the only way the other is going to get a game is when the other’s injured or being rested.


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