Partner Article
Rangers to pay Newcastle United £500k if club wins promotion
If Rangers win promotion to the Premiership this season, they will have to pay Newcastle United £500k as part of the loan deal struck with Mike Ashley’s main club for five players.
Today the Scottish club, which is part owned by Ashley, announced a £2.6m pre-tax loss for the six-month period to 31 December 2014.
In a financial statement, the club said: “During the January 2015 transfer window, the Club loaned five players from Newcastle United. As part of those contracts, should the Club gain promotion in season 2014/15, either directly or via the play-off method, the Club will be liable to pay a total of £500,000 to Newcastle United Football Company Limited.
As this liability is based on an uncertain future event, the Directors have not recognised this amount in these financial statements.“
Yesterday, Newcastle United reported a record profit after tax of £18.7m, up from £9.9m in 2013, for the year ending June 2014.
The English club currently owes £129 to owner Mike Ashley, and it has no imminent plans to repay.
This was posted in Bdaily's Members' News section by Ellen Forster .
Enjoy the read? Get Bdaily delivered.
Sign up to receive our daily bulletin, sent to your inbox, for free.
From economic engine to community ecosystem
Improving North East transport will improve lives
Unlocking investment potential before year end
Give us certainty to deliver better homes
Hormuz: Safe passage - not insurance - the issue
Don't get caught out by employment law change
When literacy thrives, our businesses thrive too
Building a more diverse construction sector
The value of using data like a Premier League club
Raising the bar to boost North East growth
Navigating the messy middle of business growth
We must make it easier to hire young people