Llambias hails ‘saviour’ Ashley.
Posted on March 6th, 2010 | 187 Comments |
Indeed, Newcastle United did find themselves in a very difficult financial situation after years of financial mismanagement and misappropriation of funds by previous chairmen, Sir John Hall and Freddy Shepherd, with the situation coming to a head when Ashley found over £100 million of hidden debt after taking over the club without performing adequate “Due Diligence” on the club’s accounts.
Writing in the programme notes for today’s game, he also outlined some of the financial backing Ashley has given to the club in recent times. He wrote:
“Let me set the record straight about Mike’s commitment to Newcastle United.
“Since the beginning of the season, he has pumped £25.5m into this football club and this week, a further £5m was needed. In addition to these amounts, Mike, realising the need to bring in new faces and back his manager’s request, spent £5.5m in the January transfer window.
“In addition to these amounts, Mike, realising the need to bring in new faces and back his manager’s request, spent £5.5million in the January transfer window.
“This cash, as with all the funds that Mike has put into the club, is interest-free.
“This money is critical and is needed to cover the shortfall between what we bring in as a football club (income) and what we pay out (costs).
“As you will have read in the press, not all football clubs have such a benefactor and some are on the verge of bankruptcy or have already gone into administration.
“There are clubs from across the board that are struggling financially at this moment in time, and if it wasn’t for Mike’s continued input, I genuinely think we would be in a similar position to the one Portsmouth find themselves in at this moment.”
What do you think about Llambias’s comments? Do you think that Newcastle United could have faced Administration without the financial input of Ashley?
My vote was no. Yes we losing money under FFS and SJH but the debt compared to other clubs wasn’t that big. We may have run out of lenders to go to but the club would have found someone to invest in it if the debt got too bad.