Mike Ashley has arranged for Newcastle United to take out a loan.
The news has broken on Tuesday morning through Firms Home.
Any adjustments Newcastle United make as a business, have to be filed at Firms Home.
This indicates the public have access to the documents, even though there is some delay ahead of they can be observed.
Tuesday morning (17 September 2019) the most recent document became readily available to the public.
It was filed by Newcastle United on 11 September 2019 and it shows that the club have borrowed an unspecified quantity (or arranged a considerably improved overdraft facility) from Barclays Bank.
The loan is secured against each the remaining funds to be received by Newcastle for this existing 2019/20 season from the Premier League/broadcasting, as properly as against the ‘Basic Award Fund’ for the 2020/21 season.
Newcastle will bank tens of millions subsequent season from the Premier League, even if relegated, due to the parachute payments.
It was a 30+ web page document at Firms Home but these are the (especially) relevant pages as to how the funds will be secured/repaid:
A tiny bit puzzling this thinking about Newcastle United stated that there was £61m readily available to invest this summer time plus money from sale of players, however there appeared to be at least £30m left unspent…
So the query is, why would Newcastle United be needing to loan funds and/or have this further borrowing facility, when you wouldn’t picture cashflow would be a issue.
I do not want to be concerned anyone but practically precisely a year ago, the club held its final official NUFC Fans Forum (24 September 2018) and through September 2018 fans forum minutes we located out that after the transfer window ended, an unspecified quantity of the money that hadn’t been spent in the summer time, was alternatively taken out of the club by Mike Ashley against his private ‘loans’ to his personal football club.
This was later revealed to be £33m that the owner had taken out of the cashflow.
The club have refused to hold any Fans Forums given that final September and certainly have had only two in the previous 29 months, as they refuse to engage effectively with fans, in spite of the Premier League guidelines (what a laugh).
So you have to ask the query, has this new loan/borrowing facility been set up so Mike Ashley can take one more huge chunk of funds out of the Newcastle United money flow?