Newcastle United have reportedly taken out a £140million loan to help fund Eddie Howe’s transfer war chest this summer, as he remains keen on adding a new forward.
The Saudi-owned Magpies have reserves of £492billion, making them the wealthiest owners in world football, but they have been restricted in their transfer business so far.
Financial Fair Play rules have, however, restricted the amount owners can pump in directly for transfers and they also have to wait until next season to bring in lucrative sponsorship deals with Saudi-linked businesses.
The Tynesiders are said to have opened up a credit facility with HSBC to pocket cash due from next season up front, according to The Sun.
The Saudis, who own 80 per cent of the club, are able to use Premier League TV revenue and ticket sales to secure the borrowing.
The same report suggests that Newcastle received £119m in broadcasting income for the 2020-21 season while St James’ Park brought in £25m in matchday revenue for the 2018-19 campaign, the last unaffected by Covid where figures are available.
This means they are able to borrow over £140m from HSBC, in an agreement increasingly used by Prem clubs, which will be a major boost to boss Howe in his quest to add a striker and a winger to his squad before the end of the window.
Newcastle’s new ownership group have spent nearly £150m on players since buying out Mike Ashley last October and have also renovated the training ground and upgraded parts of St James’ Park.
They’ve made three summer signings, snapping up Matt Targett from Aston Villa for £15m following his loan spell, Nick Pope and Sven Botman have also been signed for £10m and £35m respectively.
The Magpies also remain linked with a number of high-profile stars, including wantaway Chelsea striker Timo Werner, as the boss remains focused on being in a new striker to help them push on this season.
Real Sociedad’s Alexander Isak, Moussa Diaby of Bayer Leverkusen and Leeds’ Jack Harrison have also been targeted by the North East club this summer.
Callum Wilson top scored with eight Premier League goals last term but there was precious little firepower elsewhere in attack, with January signing Chris Wood offering only two goals from his 17 appearances.
Therefore a striker has become the top priority in the transfer window for Newcastle this summer.