Magpies tighten belts
Newcastle will not be spending any new money on players as they seek to stay in the Premier League.
Last Updated: 09/05/10 11:13pm
Newcastle have confirmed they will not be spending any new money on players in the summer as they seek to stay in the Premier League next season.
Despite promotion being worth as much as £60million to the club, manager Chris Hughton will have to generate his own funds or rely on free transfers and loan deals.
The news comes after the Magpies, whose wage bill in the Championship last term still amounted to in excess of £40million, have suffered big losses recently.
The club recorded an operating loss of £37.7million for the financial year 2008-09 and are estimating a shortfall of £32.5million for 2009-10, while their £20million overdraft is already committed.
To avoid future losses, the board have now drawn up a five-year plan which they believe will enable them to break even by the end of the 2015-16 financial year.
In a lengthy statement, the club also confirmed Hughton will remain as manager amid speculation over his future.
The statement said: "It is clear to the board that no organisation can be successful, until the financial position is stabilised.
"The board have therefore structured a five-year plan in which the ultimate goal will be to ensure that the club is run at a 'break even' manner by the year 2015-2016.
"The first-team squad that won the Championship this year will form the basis of the team for next season in the Premier League.
"There is no plan for new capital outlay on players."
For the longer term, the club hope to utilise the best in local talent rather than rely on big-money signings.
The statement added: "The board and supporters are aware that Newcastle United currently has a footballing Academy brimming with talent, skill and dedication.
"As part of Newcastle United's quest for a team that truly represents the values of the Geordie nation, the club will look to promote, where it can, from within and for the Academy to become a leading light as one of the best, if not the best, in the UK.
"The days when players such as Alan Shearer, Steve Bruce, Peter Beardsley and Michael Carrick had to leave Newcastle to begin their illustrious football careers elsewhere are over.
"Newcastle United is more than aware of the great passion for the game of football that exists locally and is intent on ensuring that every great Geordie footballer has the opportunity to play for his home team club."
The board also signalled their intention to maintain a silence over their operations and will leave Hughton and his players to comment on football matters.
The statement concluded: "Newcastle United Football Club is an organisation that holds a special place in the hearts of Geordies worldwide and the board understands that it is they who are the spiritual torch holders of Newcastle United Football Club.
"The board has made this statement so that all those involved with Newcastle United be they supporter, member of the media or an individual with an interest in football, can be aware of what the board will strive to achieve over the next five years."