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Page last updated at 10:53 GMT, Monday, 10 May 2010 11:53 UK

Newcastle United reveal tightened transfer budgets

Chris Hughton
Hughton may find it difficult to strengthen his squad for next season

Newcastle United boss Chris Hughton has been told he must sell players before buying others in preparation for the Magpies' return to the top flight.

Otherwise Hughton must rely on loan signings and free transfers to improve his squad for the Premier League.

"The squad that won the Championship this year will form the basis of the team for next season in the Premier League," a club statement said.

"There is no plan for new capital outlay on players."

Hughton is also being urged to promote from within the club to boost his ranks, with the club's academy side reaching the 2009-10 FA Youth Cup semi-finals against Aston Villa.

Financial reasons are being cited for reduced player investment at St James' Park this season, with owner Mike Ashley keen to bring down the club's reliance on overdrafts in the coming years.

The statement added: "The club presented its financial report to Companies House this April for the year 2008-2009.

"The financial report shows that there was an operating loss of £37.7m for that year and an estimated loss for 2009-2010 of £32.5m.


"Newcastle United also has an overdraft of £20m that is fully committed.

"The board have therefore structured a five-year plan in which the ultimate goal will be to ensure the club is run at a 'break-even' manner by the year 2015-16."

Meanwhile Hughton's position as manager for the forthcoming season has been confirmed, as the board seek to quash speculation a new manager would be introduced ahead of the Premier League return.

However Hughton was given money to spend on players during the January transfer window, bringing in defenders Mike Williamson and Danny Simpson, winger Wayne Routledge and striker Leon Best - all for undisclosed fees.

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