Alan Pardew reveals Newcastle would have to take out bank loans if they wanted to sign new players such are the financial restrictions imposed by owner Mike Ashley

The Magpies were the only side not to make a first-team permanent signing in the summer and Pardew has now revealed that there isn't the money to strengthen the squad

Alan Pardew has revealed that Newcastle United would have had to take out a bank loan in order to make any permanent  signings during the summer, such is the extent of the financial restrictions that owner Mike Ashley is imposing on the club.

The Magpies were the only Premier League side not to bring in a first-team player on a permanent deal, with their sole capture of striker Loic Remy a season-long loan from Queens Park Rangers.

The financial restrictions are even more surprising after the club admitted they had signed the “best commercial deal” in the club’s history when they agreed to have money-lenders ‘Wonga’ as their main shirt sponsor, plus the added television revenue of the new season worth a minimum £14m extra to each club in the top flight.

“I have to say a marquee signing would have taken us into our overdraft facility,” said Pardew, when asked about the club’s failure in the transfer market.

“That was something we really didn’t want to do, although there were two or three bids that went in that would have definitely put us in that [overdraft].

“There was the will there, but I don’t want to say any more than that. I don’t want to affect our fans any more than they’ve been affected.”

Newcastle fans were outraged with the club’s lack of transfer activity, following Joe Kinnear’s return to the club in a director of football roll aimed with the task of improving player recruitment.

They will be angered further by this latest revelation, with the situation appearing to be Ashley’s intention to run the club for profit rather than improve the playing squad.

Ashley has leant the club over £100m in interest free loans to eliminate the debts that the club had when he took over on Tyneside in 2007, and the further costs of the relegation to the Championship four years ago.

But with the Sports Direct owner benefitting from millions of pounds of free advertising at St James’ Park, fans will now feel that those loans are being repaid to Ashley rather than seeing the squad strengthened after their scrape with relegation last season.

The last time the club revealed its financial figures, Ashley had taken £11m out of the club, and despite the Magpies media department insisting that he has not taken out any more since, the increased income for this season suggests that the money is going to the billionaire owner rather than the club’s coffers.

Newcastle owner Mike Ashley (L) and former director of football Derek Llambias (R) Newcastle owner Mike Ashley (L) and former director of football Derek Llambias (R)  

However, former director of football Derek Llambias admitted in March that the club were in a very healthy financial situation, and that any signings in the summer would not be dependent on player sales – a notion that Pardew backed up at the end of the season when he admitted he wanted to see new faces within his squad for the new season.

“We have made a profit of £1.4m, but we will not have to sell to buy in the summer,” Llambias said after the club made five new signings in January this year.

"There are several positions we are looking at. Next year, we will have the extra TV money. There is a budget to spend. We are actively looking at players and have been since October, all over Europe.”

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect
Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all
The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there