Report: Why the Newcastle United owners took out a loan this week

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There was confusion on social media earlier in the week when it emerged that the Newcastle United owners had taken out a loan with HSBC.

The information came from a Companies House update shared by football finance expert Kieran Maguire. And we thought we had seen the last of Companies House after the takeover went through…

Maguire stated that the money borrowed from HSBC has been secured by ticket sales and media rights. It basically looks like we are getting the money now that we would get at a later date.

Of course, this led to speculation of what it might mean for the club. It even made the back page of the Sun with the headline ‘Geordie poor’, which didn’t even make sense. It was obviously a play on the TV show Geordie Shore, but people from the North don’t say ‘poor’ in the same way they say ‘shore’. Anyway, that’s not the issue.

Fans have been curious to know why our mega rich owners have taken out a loan, and i News have provided some information.

Toon loan explained by Newcastle insider

The i have spoke to a source at Newcastle, who has shed some light on the situation at St James’ Park.

They report that the loan is to ‘fund future growth‘. In short, they state that it will allow the Magpies to spend more money this summer.

The amount Newcastle have borrowed is unknown, but i News add that financial experts believe it could be around £70million.

If that money is spent on new signings then it will really help Eddie Howe. After making a bright start in the transfer window, the club have since struggled to bring in attacking reinforcements.

Howe wants to sign a winger and striker, with big names like Moussa Diaby linked. However, they proved to be too expensive.

While players like him might still be deemed too much, this financial boost certainly puts us in a better position. It should allow us to offer more money up front, which is more desirable for selling clubs. So far this summer we’ve been paying in installments to help get as much out of the budget as possible.

With just over a month to go until the transfer window closes, Howe still needs a few more players. It’s been a frustrating July, but this loan will hopefully help us fulfil our goals. In the words of i News’ Newcastle source, it will ‘fund our future growth’.