NUFC apparently take loan from Barclay's to fund transfers
Posted: Thu Jan 31, 2019 11:26 pm
Not sure what to think of this, or completely understand it in all honesty. From the sound of it we have essentially taken an advance from the summer premier league revenue. Although since they dropped the name, I didn't think Barclay's still sponsored the prem. Whether that' sthe case, and if it's common practice with other clubs, I've no idea. Does beg the question though as to where the money from the previous summer(s) league funds has gone.
https://www.chroniclelive.co.uk/sport/f ... s-15763997
And yes, it's the chronicle, so take as you will.
https://www.chroniclelive.co.uk/sport/f ... s-15763997
And yes, it's the chronicle, so take as you will.
SpoilerShow
Newcastle United took out a loan with Barclays Bank to help fund recruitment in the January transfer window.
But the club and third party sources both insist there is nothing untoward about the arrangement, which is similar to the financial facility that many Premier League clubs enter into.
United arranged the facility with Barclays in effect to advance them the Premier League central prize money that is due towards the end of the January transfer window and the summer. It appears it has been partly used to pay for the Miguel Almiron transfer fee and cover some costs.
While fans may ask where the money paid in August to them has gone – along with the money recouped from Aleksandar Mitrovic and further sales in the summer – the club’s position is that there are “peaks and troughs” in their cashflow during the season which need to be “managed”. Arranging this external facility is one way of doing it, rather than borrowing money from Mike Ashley – which they did during the Championship season.
READ MORE
Newcastle United deadline day LIVE - Winger set for Championship club; Almiron deal explained
The facility is referred to as an “arrangement” by the Premier League. Barclays will pay Newcastle the amount due to them by the Premier League in one lump sum and, rather than distribute them to Newcastle, they will pay back the bank.
The money has been used to pay for transfers rather than paying Ashley back his loans, although some club funds have been diverted for that this season. Newcastle senior officials have always insisted that Ashley’s loans do not have an impact on United’s ability to sign players and that there was money to spend on the “right players”.
The club face questions about where the money raised in the summer has gone and know that the £16million outlay on Almiron – along with a £1million loan fee on Antonio Barreca – will not be enough to answer all of those queries.
READ MORE
When will Miguel Almiron make his Newcastle United debut? Will he be available to face Tottenham?
There are plenty of questions to answer now that the trading period is over for Premier League clubs.
Peter Kenyon’s takeover bid has never formally ended but it’s understood that Ashley no longer believes he can fund the deal, and the club’s primary focus will be on retaining the manager. How Ashley deals with the takeover situation in the next few weeks will be interesting – there’s a chance he may speak and clarify the club’s short-term plans.
United sources insist that staying in the Premier League and Rafa Benitez staying at the club would see him handed further funds in the summer. But with five months until he’s out of contract, there is plenty of work to be done on that front.
But the club and third party sources both insist there is nothing untoward about the arrangement, which is similar to the financial facility that many Premier League clubs enter into.
United arranged the facility with Barclays in effect to advance them the Premier League central prize money that is due towards the end of the January transfer window and the summer. It appears it has been partly used to pay for the Miguel Almiron transfer fee and cover some costs.
While fans may ask where the money paid in August to them has gone – along with the money recouped from Aleksandar Mitrovic and further sales in the summer – the club’s position is that there are “peaks and troughs” in their cashflow during the season which need to be “managed”. Arranging this external facility is one way of doing it, rather than borrowing money from Mike Ashley – which they did during the Championship season.
READ MORE
Newcastle United deadline day LIVE - Winger set for Championship club; Almiron deal explained
The facility is referred to as an “arrangement” by the Premier League. Barclays will pay Newcastle the amount due to them by the Premier League in one lump sum and, rather than distribute them to Newcastle, they will pay back the bank.
The money has been used to pay for transfers rather than paying Ashley back his loans, although some club funds have been diverted for that this season. Newcastle senior officials have always insisted that Ashley’s loans do not have an impact on United’s ability to sign players and that there was money to spend on the “right players”.
The club face questions about where the money raised in the summer has gone and know that the £16million outlay on Almiron – along with a £1million loan fee on Antonio Barreca – will not be enough to answer all of those queries.
READ MORE
When will Miguel Almiron make his Newcastle United debut? Will he be available to face Tottenham?
There are plenty of questions to answer now that the trading period is over for Premier League clubs.
Peter Kenyon’s takeover bid has never formally ended but it’s understood that Ashley no longer believes he can fund the deal, and the club’s primary focus will be on retaining the manager. How Ashley deals with the takeover situation in the next few weeks will be interesting – there’s a chance he may speak and clarify the club’s short-term plans.
United sources insist that staying in the Premier League and Rafa Benitez staying at the club would see him handed further funds in the summer. But with five months until he’s out of contract, there is plenty of work to be done on that front.
