Mike Ashley has spent another £10million on running costs at Newcastle United on top of the £248million he has already invested. The club's billionaire owner provided the funds, in the form of a loan, for Kevin Nolan's £4.5million transfer from Bolton Wanderers last month and Real Mallorca, who have been in dispute with Newcastle, will this week receive about £4million in compensation for Jonas Gutierrez.

While the club made a profit of £8million during the transfer window, Ashley has insisted that all incoming signings are paid for up front. The norm in football is for clubs to make and receive staged payments for players, but Newcastle's accounting methods ensure that they effectively own their assets in their entirety. Aside from making the club more attractive to potential buyers, the benefits are not immediately apparent.

Newcastle sold Charles N'Zogbia to Wigan Athletic for £6million and will receive £5.9million from Manchester City for Shay Given, but it is understood that the first instalment for the Ireland goalkeeper will not be received until this summer. That would explain why Ashley has now increased his interest-free loan, which previously encompassed the £138million he spent on buying the club and £110million on reducing debt.

The hierarchy on Tyneside hope to reduce future expenditure by investing in youth and Derek Llambias, the managing director, has revealed that £5million has been spent on Academy playing staff. Newcastle hope to establish a youth academy in France and are extending their scouting network to Brazil and Scandinavia.

They have some persuading to do, but Llambias believes the club's new strategy can return them to the top four positions in the Barclays Premier League. “Why not?” he said. “We want to be solid competitors at the top. That's the way we're going. We aim to be knocking on the door again.

“When we took over we had repair work to do and holes to fill. That has been huge step. We didn't think the club had any foundation, there was a poor Academy and we are now building for the future. We're not neglecting the club.”