The Newcastle United Blog | Newcastle secure £140m loan to help with summer spending according to report

There was an interesting revelation yesterday as Kieran Maguire, author of The Price of Football, posted the following tweet about Newcastle getting a loan from HSBC. In a follow-up tweet, Maguire said it would likely help cash flow in the near term, although no amount was provided.

The Sun report the loan is £140million and is to help out in the summer transfer window. It is unclear whether this has been planned in advance and relates to the existing budget and other expenses, or whether Newcastle have decided to increase funds during what has been a difficult window.

Newcastle are taking a pragmatic approach to their rebuilding. They received inflated quotes on most of their favorite targets. The club have so far refused to take advantage of what they suspect is a ‘Newcastle tax’ due to the wealth of the ownership group.

However, Financial Fair Play rules limit the amount owners can fund for transfers. Newcastle have also failed to secure the lucrative sponsorship deals they will do in the future, although sleeve sponsor Noon came on board in the summer.

What this means for this window is unclear and time will tell. While the press amuses itself with the news, it is a common approach for Premier League clubs. Hopefully that will help fund two forwards before September.