Newcastle take out £140m LOAN despite being world’s richest club with cash reserves of £492BILLION
MEGA-RICH Newcastle have taken out a £140million loan to fund Eddie Howe’s transfer warchest.
The Saudi-owned Magpies have reserves totalling £492billion, making them the wealthiest owners in world football.
Financial Fair Play rules have restricted the amount owners can pump in directly for transfers and they also have to wait until next season to bring in lucrative sponsorship deals with Saudi-linked businesses.
So the moneybags Tynesiders have opened up a credit facility with HSBC to pocket cash due from next season up front.
Using Premier League TV revenue and ticket sales to secure the borrowing, the cash injection will hand boss Howe a huge boost in his quest to land a new striker and winger in the final month of the window.
Howe has been growing frustrated at the “Toon tax” placed on the mega-rich Tynesiders.
Read More Football Stories
Yet they have adopted a sensible approach so far, vowing to build a title-winning side over a number of years.
The Saudis, who own 80 per cent of the club, have spent nearly £150m on players since buying out Mike Ashley last October and have also renovated the training ground and upgraded parts of St James’ Park.
Newcastle received £119m in broadcasting income for the 2020-21 season while St James’ Park brought in £25m in matchday revenue for the 2018-19 campaign, the last unaffected by Covid where figures are available.
This means they are able to borrow over £140m from HSBC, in an agreement increasingly used by Prem clubs.
Most read in Football
FREE BETS AND SIGN UP DEALS – BEST NEW CUSTOMER OFFERS
Southampton, Everton, West Ham and Fulham have also raised cash in recent years by pledging future TV and matchday money in return.
The Toon have signed three senior players so far this summer.
Matt Targett’s loan from Aston Villa was made permanent for £15m, while Nick Pope and Sven Botman were recruited for £10m and £35m respectively.