New Report Reveals How Much Money Newcastle United ‘Owe’ Mike Ashley
The latest annual Deloitte report has just been published and it has revealed that in the summer of 2012, the Premier League clubs had a massive total debt of £2.4billion.
However, out of that huge total, £1.4billion was in interest free soft loans from the clubs’ owners. Top of that list unsurprisingly were Chelsea with an eyewatering £895m owed to Abramovich.
In second place though were Newcastle United with £267m owed to Mike Ashley, then in third were Queens Park Rangers with £93m. While it is safe to assume that Newcastle’s ‘debt’ will be heading the right way after the successful 2011/12 season and restrained spending, you have to assume that QPR’s debt must be rocketing and what relegation will do to that we wait to see.
Newcastle’s ‘debt’ to Ashley will be a combination of debts ran up with relegation and disasters such as employing Dennis Wise and the money Sam Allardyce wasted, plus the money Ashley originally paid for the club has been converted into debt. It would make little sense for Ashley to charge himself interest but I suppose it is better to have a rich crackpot owner than a poor one.
Dan Jones of the Sports Business Group at Deloitte commented;
“When you look at how much of that debt is in soft loans, the interest-paying debts that are left is not that much”.
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