When Mike Ashley bought the club a year last summer, he found out Newcastle were still paying for stars that Graeme Souness and Glenn Roeder had brought to the club years before.
Freddy Shepherd – ran the club on hire purchase – loans
Newcastle are still paying off the fees for Oba Martins and Damien Duff, brought in by Roeder, while the club have only recently cleared debts for our Spanish flop Albert Luque and the Turkish International Emre, brought in by Souness, and we’d be very surprised if we’ve paid off all the £17M to Real Madrid for Michael Owen.
The fees were paid via installments spread out over many seasons, simply because Newcastle never really had the money in the first place.
Of course we expect to hear from Freddy Shepherd within a few days saying this is nonsense, but we know the club was not run with any financial responsibility by Shepherd – we know that – otherwise we wouldn’t have been in the financial mess Mike inherited.
There are still payments to make on some of those transfers over the next two years, while the £11M from major long-term commercial deals, understood to be Northern Rock and Adidas, were spent up front by the previous regime.
These are not new revelations, but point to the suicidal way the club was previously run financially.
Llambias said today:
“We are trying to get away from dating so that we don’t have huge amounts of money going out.” “We are trying to pay up front.”
“People like Coloccini, Xisco and Gutierrez, which is just getting sorted out now – we own those players.”
“It’s like buying a car on HP but then it gets written off, but you still have to pay it.”
“That’s how the business was being run, they ran it on a credit.”
However, Llambias has vowed that Newcastle will be in the transfer market in the summer again, and we have a good idea who we’ll after, following some our failed advances in January.
With a number of players leaving in the summer who have huge wages, Newcastle should also be able to get the wage bill under control.
“There is £8M there and it will be spent in the summer.” “Mike isn’t afraid to spend money out of his own pocket.”
“Last year we lost £34m, this year we’ll lose £20m, and next year it will be around £7m.”
“But it still doesn’t mean that Mike won’t invest when he has to invest.” “We aren’t a selling club, we’re a buying club.”
“We are out there in the market.”
The £8M is what we made in the January transfer window.
We sold Charles for around £8M and Shay for £6M, and laid out £4M for Nolan, and £2M for Ryan Taylor, so we had around £8M net left.
It’s good that Kinnear will have that money to spend in the summer, plus any money he can get from selling some of the players he doesn’t want, like Geremi, Xisco, and possibly Smith and Enrique.
Viduka, Edgar and Cacapa will likely not be retained, when their contracts expire in the summer, and we don’t expect Michael Owen to stay, although the club wants to keep him.