Newcastle United news: PiF pump in cash as £187m details confirmed – Kieran Maguire
Newcastle United will use new cash injected by their owners to cover their growing wage bill and utility costs.
That is the view of finance expert Kieran Maguire, who exclusively told Football Insider that the injected cash will not likely be spent in the summer transfer window.
As revealed by Football Insider, Newcastle United chiefs bankrolled a £37million injection into the club in the form of a new share issue.
It is not the first cash injection from the club’s owners this season after £60million of shares were issued back in August.
Under Profit and Sustainability Rules, top-flight clubs are allowed to lose a maximum of £105million – with £90million of that figure made up through owner investment.
Newcastle United wage bill to be covered by injected cash
Maguire believes the latest share issue will be used to help cover Newcastle’s wage bill, which grew to £187million in their latest 2022-23 accounts.
“Newcastle’s strategy of issuing single shares in order to raise cash is mainly to do with working capital requirements and outstanding financial commitments,” Maguire told Football Insider’s Sean Fisher.
“So I think it would be unwise of fans to think that this is money being paid into a transfer kitty in advance.
“The club’s wage bill has increased substantially since the acquisition by PIF.
“The money coming in from these share issues is mainly there to allow the club to meet its monthly payroll and cover all utility costs.“
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