Reportage - 7/Mar/10
NEWCASTLE STILL SUFFERING CASH CRISIS - Ashley needs to pump in another £10m - Martin Hardy, News of the World
MIKE ASHLEY will have to pump up to £10million into Newcastle to get the club through the season.
Despite a series of cutbacks, Newcastle's wage bill and running costs are still too high.
Ashley put £25m into the club at the end of 2009 to keep the club afloat - interest free. His loan was offset against the second relegation parachute payment, due in August, and also deferred payments on last year's transfer sales that will land at the end of the season.
However, I understand there is a further need for fresh investment to tide the club over until the summer, when the hope is that Newcastle will be a Premier League club again, and receive a cash windfall of around £35m.
Finally, after three years in charge, there will also be the first sign of sponsorship income from Northern Rock and new shirt makers Puma.
Ashley has already introduced a new limit on salaries, with no player arriving in January picking up more than £10,000-a- week. But he still spent £5m on players to boost a small squad.
Now he needs somewhere in the region of £10 million to cover running costs and salaries to the end of the campaign and the only method of doing that is again from his own pocket.
Toon boss Chris Hughton will be given an improved contract if he leads the club out of the Championship.
And he admitted: "Financially it has been very difficult for this club.
"But at the time I've needed support, like in the window, I've gotten the support from the club, and I've got the players I wanted to bring in.
"Was it my policy or the club's not to spend big money and to buy younger players? It was a combination. I know I'm not going to be asking to bring in £10m players because I know where this club is at financially.
"So it is trying to get the right formula. What we were able to bring in were players at a good age.
"There has to be a real thought process to anyone who comes in.
"We knew we didn't have to do too much to the squad but every request I had to bring in a player was met. That is all I could ask for."
Despite a series of cutbacks, Newcastle's wage bill and running costs are still too high.
Ashley put £25m into the club at the end of 2009 to keep the club afloat - interest free. His loan was offset against the second relegation parachute payment, due in August, and also deferred payments on last year's transfer sales that will land at the end of the season.
However, I understand there is a further need for fresh investment to tide the club over until the summer, when the hope is that Newcastle will be a Premier League club again, and receive a cash windfall of around £35m.
Finally, after three years in charge, there will also be the first sign of sponsorship income from Northern Rock and new shirt makers Puma.
Ashley has already introduced a new limit on salaries, with no player arriving in January picking up more than £10,000-a- week. But he still spent £5m on players to boost a small squad.
Now he needs somewhere in the region of £10 million to cover running costs and salaries to the end of the campaign and the only method of doing that is again from his own pocket.
Toon boss Chris Hughton will be given an improved contract if he leads the club out of the Championship.
And he admitted: "Financially it has been very difficult for this club.
"But at the time I've needed support, like in the window, I've gotten the support from the club, and I've got the players I wanted to bring in.
"Was it my policy or the club's not to spend big money and to buy younger players? It was a combination. I know I'm not going to be asking to bring in £10m players because I know where this club is at financially.
"So it is trying to get the right formula. What we were able to bring in were players at a good age.
"There has to be a real thought process to anyone who comes in.
"We knew we didn't have to do too much to the squad but every request I had to bring in a player was met. That is all I could ask for."