Partner Article

Newcastle United cash snapped up by bank

A REPORTED £10m which Newcastle United stands to gain from past sales of big name players has been pledged to its bank.

According to reports, on 30 June 2009, Newcastle’s overdraft at Barclays Bank had spiraled from less than £13m in 2008 to a £47.87m by the end of their 2008-09 season in which the club was relegated from the Premier League.

It then appears that Barclays took steps to reduce it and on 1 July, a mortgage was registered assigning St James’ Park, the club’s training ground and academy centre to the bank, as well as all their intellectual property.

According to The Guardian, the following October Newcastle then secured a loan that charged a number of deferred transfer-fee receipts, and this is what will really affect the club’s cashflow.

Among the items is a £3,983,333 payment due from Aston Villa for James Milner on 29 August this year and two €1.68m (£1.4m) instalments from Wolfsburg for Obafemi Martins, the first on 31 August this year and the other a year later.

Newcastle would already have received £3.25m from Wigan Athletic for Charles N’Zogbia in January this year and another €950,000 (£796,500) for David Rozehnal from Lazio.

This was posted in Bdaily's Members' News section by Ruth Mitchell .