Kieran Maguire: Newcastle United brace for busy summer as £57m news confirmed
Newcastle United owners will use their £57million injection of shares to deal with day-to-day expenses until “summer sales” bring in more income.
That is the view of finance expert Kieran Maguire, who spoke exclusively to Football Insider about how Newcastle plan to spend the cash injection from their owners.
Football Insider sources revealed on Saturday (11 March) that the owners of Newcastle have injected £57million into the club in the form of a new share issue.
JV1 Ltd – the holding company owned by Amanda Staveley and the Reuben brothers – issued exactly 20 per cent of the shares (£11.4m).
The owners of the Tyneside club have already allotted a single share for £70.4m in November last year.
Maguire believes the money injected will be spent on day-to-day expenses at St James’ Park while the owners wait for money to arrive from merchandise and ticket sales this summer.
“This form of cash injection with new shares will allow the club to deal with its day-to-day operational cost requirements for the next few months,” Maguire told Football Insider.
“It will help Newcastle handle expenses until the money starts to come in on a more accelerated basis from the next instalment of Premier League money and potentially Uefa payments should they qualify.
“On top of that, things will pick up after summer sales of merchandise and season tickets.
“This appears to be a cash-flow management issue as much as anything else, giving the club the flexibility to deal with cash demands when they arise.”
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