Ashley does not want repayment

Newcastle owner will not take money out of club

Last updated: 11th May 2010   Subscribe to RSS Feed

Ashley does not want repayment

Ashley: Magpies loan

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Mike Ashley has claimed that he does not expect the interest-free loan he made to Newcastle to be repaid.

The Magpies' latest financial figures showed that club owner Ashley had made a loan of £111million, which would be repayable on request.

That led to suggestions that Ashley, who has ruled out any capital outlay on players this summer, would look to recover what he is owed after the St James' Park outfit returned to the Premier League.

But a statement released by the club on their official website on Tuesday afternoon has moved to scotch those suggestions.

It read: "In relation to recent media speculation following the statement made by the club on May 9, Newcastle United would like to make it clear that owner Mike Ashley is not looking for his interest-free loan to be repaid, or to take any money out of the club."

Budgeting

The club's initial statement, which was released on Sunday evening, revealed an estimated operating loss for the last two years of almost £70million and pointed to stringent budgeting as a five-year plan designed to reach the break-even point swings into action.

Manager Chris Hughton will have to attempt to strengthen his squad after winning promotion from the Championship with Bosman free transfers and loan signings, or generate cash by selling members of the existing playing staff.

But Ashley, who pumped £36million into the club last season alone, is adamant the estimated £60million windfall which will come the club's way as a result of winning back their top-flight status will not go straight into his pocket, as has been suggested by some critics.

The Magpies carried a wage bill of in excess of £40million last season, reduced by almost half on the previous campaign but still massive for the second tier, and while Nicky Butt has decided to leave St James' Park along with the departure of Fabrice Pancrate, that will not fall significantly.

But the Ashley regime is determined to curb the spending which landed the business with such sizeable debts in the first place - meaning the purse strings will remain tightly knotted.