Newcastle take £140m loan: Why are the world's richest club borrowing money?
Karan Tejwani
- 28 Jul 2022 04:07 CDT
- 3 min read
Newcastle may be the world’s richest football club but they’ve had to take out a £140 million loan to fund Eddie Howe’s transfer market this summer.
The Magpies were taken over by Saudi Arabia’s Public Investment Fund last October and built a team capable of staying in the Premier League in the January transfer window.
Now, though, they want a side that’s capable of doing better than that and want to build a team that can challenge for the title in the coming years.
Newcastle have already completed three singings in this window – that of Matt Targett, Sven Botman and Nick Pope – but want to bring in more, and they’ve taken a loan to help out.
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Newcastle need a loan to fund their window
Despite being the world’s wealthiest club, they’ve had to do so because of Financial Fair Play rules, as it has restricted the amount owners can use directly for transfers.
This also means that the new owners will have to wait until next season to bring in lucrative sponsorship deals, which they wish to do with Saudi-linked businesses in the coming years.
As a result, the Magpies have opened up a credit option with HSBC, using the Premier League’s TV rights money as well as ticket sales to help secure the loan.
Newcastle Utd can get the cash due from Premier League for 2022/23 season up front after signing off the right to the money to HSBC in return for a credit facility, Companies House filing shows: pic.twitter.com/qnZrK8xUsy
— Martyn Ziegler (@martynziegler) July 27, 2022
That money will be used directly to fund the club’s transfer window, and allow them to complete more signings as a way of avoiding issues with FFP.
The Toon have been frustrated over the course of the transfer window as selling clubs are often inflating prices in a bid to secure more money for their players.
Newcastle aren’t biting, though, and want to take a sensible approach to buying players without overpaying for them as they are patient in their ambitions.
Eddie Howe still wishes to add another forward and winger to his team having had a positive end to last season, and he wants to improve his squad in the final month of the window.
Read more about: Premier League, Newcastle Utd.
