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Newcastle owner drops a £27m bomb on Tyneside: The club is STILL swimming in debt!

If you were a staunch supporter of Newcastle owner Mike Ashley before today (and, honestly, who isn’t?), then this next bit of news might have you hopping over to the other side of the fence. We like to call it the “pessimist pasture”. It appears Ashley, who took over the club last year, didn’t do his “due diligence” when he bought the club from the Hall family. Because of it, the current owner says that the club is in for a long road ahead.

Newcastle’s billionaire owner Mike Ashley has revealed that the club owe £27million for players bought before he took over last year.

In a rare interview in a new, official club magazine, Ashley admits that he did not perform due diligence before buying Newcastle from the Hall family because the deal was completed so quickly.

With the full details of the club’s financial situation now emerging, Magpies’ fans may point to the debt as the reason why the club have been reluctant to spend on new players this summer.

Despite putting in £100m over the past year to reduce debts, Ashley has only sanctioned the signing of two new players so far, Danny Guthrie and Jonas Gutierrez, with manager Kevin Keegan hoping to sign at least three more before the transfer window closes. (ESPN Soccernet)

So that’s why Newcastle hasn’t been a big buyer this year! I guess when you walk into a club like Newcastle, it’s A-OK to just sign the paperwork and walk out the door as the new owner of an English football club. At least that’s what Ashley wants us to believe.

In all honesty, this is just another major blunder by Newcastle in what can be called an auspicious summer gone bad. Kevin Keegan made it clear from the start that the club needed 4-6 quality signings this summer. From the looks of things, the club will end the summer with only two signings, and a inept owner to boot! Add in the current credit crunch, and there’s a good chance this situation won’t be getting better anytime soon.

What do Newcastle supporters think about Ashley’s comments? Is the club headed for some serious trouble in the future?

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