There is another article in the News Of The World today which basically states that Newcastle are still spending a lot more money than they are bringing in while they are still in the Championship.
Mike Ashley – will lend another £10M to keep club afloat
And it is expected that Mike Ashley will need to loan the club another £10M before the summer to keep the club afloat.
However, if Newcastle are promoted in early May, they will receive a cash infusion of £35M, and of course we would expect the season ticket sales to be fast and furious because the team is performing so well on the field right now.
Newcastle have held season ticket prices steady at this season’s rate for any fan who wants to buy their season ticket for next season, before March 31st, and we would expect the sales to be brisk.
Ashley loaned the club £25M in December interest free, and then in January the club brought in four players for around £5.5M in total, and most of them look great buys.
And apparently Newcastle will get a second relegation parachute payment, due in August, and as we reported last week, there are payments due this summer from the sale of some of the players we unloaded last summer.
If Newcastle do get promoted, things will look quite bright.
And the Newcastle club will finally start seeing some money from the sponsorships of Northern Rock and Puma.
No money has come in since Ashley took over in June, 2007 from those sources, because all the money from the last deal was spent to bring in Michael Owen.
The wage bill now is probably around £40M, and even if the club gets promoted, which now seems likely (dare we say that yet?), the wages will be kept to £50M at most.
The club has a new limit on wages, with no player arriving in January picking up more than £10K a week – how can they live on only that? 😀
But the main news is that around £10M will still be needed to cover the running costs of the club before the season is out.
But Newcastle are doing the right thing in getting their financial house in order, and the Tyneside club should be able to get big money in during the summer if we are indeed promoted.
Things will start to look a lot brighter on Tyneside, and things even now are starting to look up.
And the famous Newcastle fans seem to be understanding better the financial limits on football, with so many clubs getting themselves into financial difficulties and paying a heavy price.
It’s looking like Newcastle United will never be one of those clubs in the future.