Newcastle fans can finally see some light at the end of the transfer tunnel, with MLS star Miguel Almiron set to sign for a club-record fee. The £21million transfer will break the previous mark set by Michael Owen's move to Tyneside in 2006, which cost the club £17million.
The length of time between those two transfers indicates the lack of top level signings that have been made during the Mike Ashley era, and even this deal is unlikely to appease the fans for too long. That is especially true when you consider how it has been financed.
The Mirror are reporting that the transfer has only been approved after Newcastle managed to arrange a bank overdraft.
While club insiders insist such arrangements are standard practice, one would assume that cash flow should not be a problem at Newcastle. The club banked £125.9million in tv money for their 10th place finish last season, while also bringing in with a further £55million or so in further income. With a wage bill of £100million, the club should be in the green when it comes to their cash balance.
In 11 years Newcastle have managed to increase their annual commercial revenue by a mere £600,000. Everton's is £30.1m from £6.7m, Spurs' £103m from £38m
To put it politely, they have bucked the trend, writes @OliverKayTimes of Mike Ashley's failed regimehttps://t.co/F6IJbMBv5J— Times Sport (@TimesSport) January 25, 2019
This is before you even consider the club's transfer dealings. At a time when most Premier League club are spending vast amounts of cash to improve their squads, Newcastle made a £20million profit on player transfers during the summer transfer window.
The Almiron deal will cancel out that profit, but it will be concerning that the club seems to have no funds specifically designated for further deals.
Mike Ashley's unwillingness to put his own money into the club has come under intense scrutiny in recent times, and this is another example of that dynamic at play. Ashley has given the club £129million in 'interest free loans', but he will pay himself back by taking money out of the club's income.
Perhaps that explains why the club seems to have little funds in reserve, despite their high revenue over the past 12 months or so. Newcastle will receive a further tv money payment in July, at which time this overdraft will be repaid.
