Sports

Newcastle ‘could spend £200m on transfers without breaching FFP rules thanks to Ashley leaving club in strong position’

NEWCASTLE could spend £200million on transfers and not be in breach in Financial Fair Play regulations, it has been calculated. That is because Mike Ashley has left the club in a strong position financially thanks to his stringent operating in recent years. Ashley sold Newcastle to a Saudi-led consortium for £300m on Thursday. And with […] ...

NEWCASTLE could spend £200million on transfers and not be in breach in Financial Fair Play regulations, it has been calculated.

That is because Mike Ashley has left the club in a strong position financially thanks to his stringent operating in recent years.

AP

Newcastle’s new owners will be able to splash the cash after Mike Ashley secured profits in recent years[/caption]

The Toon made a profit of £38m over the last three years

Ashley sold Newcastle to a Saudi-led consortium for £300m on Thursday.

And with the Saudi Arabia Public Investment Fund worth around £320billion, the Toon have become the richest club in world football.

However, there were fears their spending would be limited to comply with FFP, which limit losses over a three-year period to £105m.

But according to football finance expert Kieran Maguire, Sports Direct tycoon Ashley has paved the way for the new owners to spend big.

The Price of Football guru told the Daily Mail: “For all that is wrong with Mike Ashley, I would love to be buying a club from him.

“There is a lot of scope to increase the investment in Newcastle if any new owners choose to do so.”

 


FREE BETS: GET OVER £2,000 IN NEW CUSTOMER DEALS


According to Maguire, United have in excess of £200m to spend over the next three seasons before FFP comes into play as the new owners target silverware and European qualification.

The Magpies have returned a profit of £38m over the past three years.

Add in around £50m for money gone into infrastructure, academy and community schemes, all of which are exempt from FFP, and the £105m allowance and the club are already looking at nearly £200m available straight away.

Maguire added: “Mike Ashley himself is a toxic brand when it comes to sponsors and Newcastle have struggled to match the growth of other clubs.

“There is a lot of scope for an increase in commercial and sponsorship revenue and from Saudi Arabia itself.

“We saw that with Manchester City. They could sign deals in the area where the owners come from.

“Premier League rivals are petrified. The other big clubs all want to get into the Champions League, and six into four doesn’t go. Seven into four is even harder.”

On top of that, Newcastle are expected to secure a swathe of new sponsorship deals for their shirts and training kit as well as the stadium naming which could rack up an extra £100m.

Fans took to the streets to party after the sale was confirmed.

I felt the bid that we accepted from the current new owners would deliver the best for Newcastle United

Mike Ashley

Ashley insisted he did receive a higher offer but felt the Saudi bid was best for the future of the club.

He told SunSport: “I would like it to be known that I received a higher offer for the club than the one that I accepted.

“It was from another reputable bidder, who made a credible case.

“But I felt the bid that we accepted from the current new owners would deliver the best for Newcastle United.

“Money wasn’t my only consideration. There were times when I stepped in financially to keep Newcastle United afloat.

“We ensured the wage bills were paid when we went down in order that we could bounce straight back up.

“Nobody was happier than me when we achieved immediate promotion.”

PA

Fans celebrated outside St James’ Park on Thursday once the deal was announced[/caption]

Leave a Reply

%d bloggers like this: