Newcastle should be able to recoup about £10M from the previous sales of some of their big-name players, who were also on enormous wages.
The Guardian is reporting that among the payments expected this summer is almost £4M from Aston Villa for James Milner – apparently due on 29th August this year.
In addition to that two £1.4M payments from German club Wolfsburg for Obafemi Martins, the first to be received on 31st August this year and the other payment next August.
Newcastle received £3.25M from Wigan Athletic for Charles N’Zogbia in January of this year, and another almost £800K for David Rozehnal from Rome club Lazio.
So the total of money coming in between last January and next summer will be around £10.85M
But Newcastle have apparently already borrowed money against that security from Barclays Bank, and when that money does come in, it will go directly to that bank to pay off that loan.
We had hoped that money would be available for new players coming in over the summer – but it shows just how strapped Newcastle were for money last summer, as they tried to weather the financial storm surrounding their relegation.
The Guardian is reporting Newcastle’s balance sheet showed their overdraft at Barclays Bank last summer had jumped to close to £48M.
Since that is in addition to Mike Ashley’s interest-free loan of at least £111M, as far as we can make out, Newcastle are now under a mountain of debt.
That’s one reason potentially no money is available to bring players into the club this summer, but of course that will not alleviate the concern of Newcastle fans.
That’s all the fans really care about, but the above financial state is a little worrying, if true, given the reported poor financial state of clubs like Portsmouth, Crystal Palace, Preston and Hull City are under right now.
Newcastle don’t seem to be in any better shape, from what we can tell.
Hopefully the significantly increased revenues from the PL will allow Newcastle to pay off some of this debt, and then be in a much stronger financial state.
If the club can survive next season in the PL, then money will surely be then available to strengthen the side next summer.