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http://www.chroniclelive.co.uk/sport/football/transfer-news/new-mike-ashley-accounts-suggest-13689062

 

  New Mike Ashley accounts suggest money is available to Newcastle United for transfers

 

Newcastle United owner Mike Ashley's company Mash Holdings leave statement in the accounts pledging £80m for transfers

 

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BYCHRIS WAUGHGRAEME WHITFIELD

 

15:39, 28 SEP 2017

 

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Mike Ashley says he has “committed” to spending £80m on transfers at Newcastle United - suggesting the club has a kitty of around £60m when the transfer window re-opens.

 

The statement comes in accounts for Mash Holdings, the company that controls Mr Ashley’s holdings in Newcastle United, Sports Direct and a range of other companies.

 

It is not clear from the accounts whether the £80m commitment is Mr Ashley saying what he has actually spent in the last three transfer windows or whether this is money he has made available for the club to spend.

 

Mike Ashley (Image: PA)

 

But given that it is thought the club has spent around £100m in that period and recouped about £80m - giving a net spend of approximately £20m - it suggests that around £60m could be available for future transfers.

 

Newcastle United and Sports Direct have both been approached for comment but have not replied.

 

Both the club and Mr Ashley faced criticism for fans at the end of this summer for not sufficiently backing manager Rafa Benitez in the transfer window.

 

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The statement on transfer funds comes in annual accounts for Mash Holdings for the 12 months ending April 26, 2016. It is contained in a section on “post-balance sheet events”, meaning that it is likely to be describing potential spending in the last three transfer windows.

 

It says: “Subsequent to the balance sheet date, the club has committed to a further net spend of approximately £80m on additions to the playing squad.”

 

READ MOREWhat is Mash Holdings? Take a look at Mike Ashley's main company

 

A later note in the accounts says the club generated a net surplus of approximately £40m in the last three transfer windows - thought to be mostly from the sale of Moussa Sissoko and Georginio Wijnaldum - though it adds that “a substantial proportion of the player sales are on deferred terms and will be received over the next three to four years.”

 

The accounts essentially cover the 2015-16 season, when United were releated from the Premier League, and highlight the cost of that “hugely disappointing” result, with media revenue falling 6% to £72.7m and the club’s wages to turnover ratio increasing significantly as it brought in new players and sacked manager Steve McClaren.The accounts say that “results for 2017 will reflect the significant financial impact of relegation”, and also outline how United’s debt - in the form of interest free loans from Mr Ashley - increased from £80.7m to £127.3m.

 

Mr Ashley’s problems were not confined to the playing field, with his Sports Direct empire reporting a “disappointing financial result” which he attributes to a “tough trading environment”.

 

Overall Mash Holdings saw its turnover rise slightly to top £3bn but group profit almost halved to £277.7m. The company employed 18,500 people, a growth of around 1,000 from the year before, with the majority in Sports Direct stores.

 

 

 

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though it adds that “a substantial proportion of the player sales are on deferred terms and will be received over the next three to four years.”

 

Relating to money due to be received from the Sissoko & Wijnaldum sales. A three to four year wait (for staggered instalment payments) is a dead weight caveat for any manager (Rafa) looking to make a splash in the transfer market. Given that we only spend what's in the bank our policy of paying upfront in full (for players), and receiving fees in installments, pretty much restricts our ability to compete in the transfer market by design (or deliberately). It's why the surplus generated during the relegation Summer should be discounted, when evaluating Rafa's spending power in the short-term, and why calls along the lines of "but we have the Sissoko Money" should be thrown in the bin as fantasy talk.

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