Newcastle have admitted owner Mike Ashley has clawed back a slice of his £144m loan to the club.
The Sports Direct tycoon handed United an extra £15m during their season in the Championship to make up for a shortfall in cash as Rafa Benitez led the side to promotion at the first attempt.
But after a bumper season last year when they finished tenth in the Premier League and banked £125.8m in TV cash, plus a transfer window profit this summer, Ashley has reduced his loan to the club.
Rather than investing in the squad heavily this summer from a position of strength, Newcastle made a headline £20m profit this summer.
But boss Rafa Benitez now has a relegation battle on his hands, and fans protesting at Ashley’s running of the club might wonder if reducing his loans diminished their spending power.
Ashley bought Newcastle for £133m a decade ago. His loans, given interest free, have fluctuated between a peak of £144m and £129m during that time.
As the club struggled to get a win on the pitch, senior officials including MD Lee Charnley have insisted there is cash to spend.
An attacking left back is wanted in January, along with a No10, and they must be "exciting high-quality young players who can make a difference."
Accountants at the club say because the club pays up front for deals, and accepts staggered payments when selling, the actual cash flow profit this summer was around £2m.
The more Ashley calls in his loan the less the club’s spending power will be, and a Fans’ Forum was told: "The amount owed to the owner was disclosed in last accounts and the figure is currently less than that. However the source of funding and level of funding required for the remainder of the season is not yet finalised, so this position may change."
Newcastle says Salomon Rondon was Benitez’s first choice summer signing, but he was only landed on loan.
The fans were told at the official meeting: "The manager wanted the player and the best deal for the club was to loan the player. The club would not have done the deal it did if the player wasn’t the number one target for the manager.
"There was money available for the right players. Players have to benefit the club not only in the short term, but also the medium-to-long term."
It also heard that: "The club did not set out to make a profit (in the summer). In terms of this financial year, the club’s income in relation to trading for summer 2018, when comparing cash going out and cash coming, is about net £2m; far from the profit being reported. The rest of the money comes in over future years."
Newcastle need a win to lift spirits, having gathered just two points in eight games, including a cruel defeat, after being 2-0 up, at Old Trafford on Saturday.
Midfielder Jonjo Shelvey says the next ten games are "massive" and could define the season.
He said: "It is not a good place to be. It was gutting to lose on Saturday after creating those chances. No excuses. They bombarded us second half with crosses.
"We have to find positives. We can’t keep putting it off and saying next week. These next ten games are massive and we have to realise the situation we are in. Foot to the mettle. Keep the unity going and turn performances into results."
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