Source: Northern_Echo
Ashley's future plans for Magpies
Mike Ashley expects Newcastle United to break even after their first season back in the Premier League and feels the club's financial stability will lead to regular drives towards European football.[LNB] On the day Newcastle United Limited revealed an operating loss of £33.5m in its annual accounts for the year they spent in the Championship, ending June 20, 2010, it also emerged Ashley is satisfied with the improving cash flow at St James' Park.[LNB] Ashley's decision to make Newcastle, who must successfully avoid relegation from the top-flight this season, a more self-sufficient business has led to progress being gradual rather than rapid.[LNB] But with a wages to turnover ratio of 90.6 per cent in 2009/10 expected to fall to 60 per cent of an £86m forcasted turnover for the 12 months ending June 2011, there is optimism from within the boardroom.[LNB] There are plans in place for manager Alan Pardew, provided they do stay in the Premier League, to be given funds to strengthen his squad this summer and that will increase the wage bill to around 70 per cent of their turnover next year.[LNB] And, crucially, it has been stressed by high level sources inside St James' that the £35m raised by the sale of Andy Carroll is not included in Newcastle's prediction that they will break even.[LNB] There will be a drive from the boardroom to ensure Newcastle do not go out and spend half the fee on a Carroll replacement; Ashley wants the club ran sensibly rather than with an over-reliance on his wealth.[LNB] The sportswear tycoon has already invested £286m - £134m to buy and a further £139m in loans, while he does not charge interest to Newcastle - since purchasing the club from Freddy Shepherd and managing director Derek Llambias insists the owner is focused on the future rather than selling up.[LNB] "Mike Ashley's money has kept this club buoyant," said Llambias. "Quite honestly Newcastle United would not be here without him, it's as simple as that.[LNB] "He has never taken a penny out of the football club but he knows what he has to put in every year and he is keen to grow it. He knows where we want to be and where we should be in four or five years time.[LNB] "But we are a very tight unit here and a much better unit than we have been previously. At the end of the day Mike is a football fan, a Newcastle fan and he loves coming here."[LNB] Llambias speaks with Ashley every day to discuss the state of play at Newcastle and the owner becomes more actively involved once their transfer dealings have reached a more advanced stage.[LNB] But to ensure Pardew and Llambias are given more money to put back in to the squad, Ashley's vision is for the company to make a £10m profit at least year-on-year, which will be then pumped back in to the squad.[LNB] That sort of outlook is not purely based on buying and selling players. He remains keen to explore all sorts of avenues, knowing top Premier League clubs pull in more than five times the £2m shirt sponsorship deal that Newcastle have.[LNB] There have also been discussions with potential partners over controversial plans to rename St James' Park. If the offer was perceived to be too good to turn down then serious thought would be put in to eradicating the St James' name in its entirety.[LNB] Installing a giant screen inside the stadium has been considered and planning permission has already been received. But whoever took over the naming rights would have to pay the £1.2m it would cost as it would mean losing 5,000 off the stadium's capacity.[LNB] "We are starting to get the stability we need into the football club both financially and within the squad. That stability is one of our most important goals," said Llambias.[LNB] "That would give us the security the club and the playing side needs. We need to get that stability back here, including on the managerial side.[LNB] "Our vision for the club is to finish tenth or above every year, year after year. That is our target, we want to be challenging for Europe every single year."[LNB] * Newcastle are looking at ways of expanding the brand abroad too, and have revealed they will head to the United States for a pre-season friendly in July.[LNB] The Magpies will take on Sporting Kansas City at their $200m Livestrong Sporting Park on July 20 in Kansas.[LNB]
