There are reports, which we have to hope are false, that Newcastle owner Mike Ashley could be forced to put the club into administration if former manager Kevin Keegan wins a massive compensation pay-out potentially due to be announced tomorrow.
Kevin Keegan – judgement could hurt Newcastle finances
The tribunal looking into the case is due to announce their decision before the end of the week, and if it is in Kevin’s favor, and they award him the full figure he’s claiming, close to £10M, we wonder how Newcastle can pay that.
The judgement against Newcastle would have major financial implications for the cash-strapped club, with administration now being reported as a possibility.
But surely this is just stupid paper talk, with the gossip press just hoping for something sensational like this to happen, to help sell their papers.
If Newcastle go into administration, the club would lose 10 Coca-Cola Championship points, a penalty which would undermine the efforts to get back into the Premier League at the first attempt.
Why wouldn’t Ashley use some of the £25M overdraft from Barclays Bank he has just secured, to start paying Kevin, and try to get a deal over a few years to lessen the immediate financial impact to the club?
While we are less than pleased that Kevin seems to be going for the jugular in his case, and would not settle for a lesser amount, but he would surely agree to easy terms to help out the club.
It is just over a year since Keegan left St James’ Park for the second time as manager, after a furious bust-up over the club’s transfer policy with Ashley and Wise.
It seems that Kevin will win his case, and that indeed will show Ashley and Wise were bringing in players behind the manager’s back – which is both stupid and disgraceful – and something they said they wouldn’t do.
While the payout to Kevin, if large, would be a blow to the club’s financial position, Newcastle should nevertheless be able to handle it without going into administration, which just seems a preposterous notion to us.
But on the other hand, it certainly doesn’t help when the club is being made financially viable, to sell to Barry Moat.
We have to hope the sale will not be negatively impacted by all of this.
What a soap opera this has been over the last 12 months – it’s even better than Coronation Steeet.