Revealed: Mike Ashley in line for £111m payout from Newcastle
Newcastle United are in line to pay off the £111million owed to Mike Ashley if the takeover is completed.
According to the club’s newly-published accounts, the club’s only outstanding debt at 30 June 2019 is an interest-free loan from Ashley.
Analysis from Football Insider has learned that the £111m figure would be wiped out as part of the £300m price agreed for the purchase of the club with Amanda Staveley’s Saudi Arabia-led consortium.
The proposed takeover deal is in its eighth week with the Premier League still to decide on the outcome of its owners and director’s test.
Ashley is having to be patient in the same way as the Newcastle fans frustrated at the lengthy hold-ups.
But he is selling the club at a time when they are in reasonable financial fettle and operating on a sustainable basis.
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Newcastle posted a glowing set of financial results that left them with the third highest pre-tax profit for last season, behind only Tottenham and Liverpool.
The north-east giants recorded a pre-tax loss of £41m for 2018-19 even though turnover dropped £2m to £176m.
However’s the club’s cash reserves have plummeted to just £14m as the Sport Direct tycoon repaid himself £33m last season — to return funds he loaned the club during the 2016-17 Championship campaign.
Newcastle have made money in eight of the last nine years, the only exception when they spent the season in the Championship in 2016-17.
The Magpies are 13th in the suspended Premier League and well placed to avoid relegation as Ashley prepares to make way for a takeover that promises a transformation of the club’s ambition and investment.
In other Newcastle United news, the door has opened for the club to sign superstar after Sky reveal.