Newcastle United have refuted claims made by a television documentary suggesting that owner Mike Ashley's company Sports Direct benefits from the club's income.
Channel 4's Dispatches claimed last night that money from goods bought at the club's official stores and on its website is received by Sports Direct.
However, Newcastle have hit back by claiming that the undercover documentary is wrong in its accusation of Ashley and his company.
Ashley's standing at St James' Park is currently at an all-time low following a disappointing season for the team on the pitch. The Magpies have lost their last seven games in the Premier League, leaving them just five points above the relegation zone.
Meanwhile, it was recently revealed that the club has over £30m at its disposal, yet it is unlikely that much of this money will be spent on new players in the near future.
"Last night's programme made a wholly inaccurate claim regarding the retail relationship between the club and Sports Direct," read an official Newcastle statement. "In the club's view, the broadcaster deliberately misled Newcastle United supporters and provided yet another example of erroneous media reporting which only serves to further antagonise fans.
"For the purpose of clarity, we can reconfirm that 100% of the income from goods bought in the club's official stores and on its website are received by the club and not Sports Direct, as the 'Dispatches' programme claimed.
"The only money paid by the club to Sports Direct is for the stock (at cost price), plus a handling fee. This represents far better value than the costs the club historically incurred in relation to purchasing, storage and distribution.
"In fact, the change to our retail operating structure introduced in February 2013, which saw us partner with Sports Direct, increased the profit margin by over 50 per cent. This benefits the club hugely. In simple terms, the club receives more money as a result of this relationship."
Ashley became owner of Newcastle United in 2007 following a gradual accumulation of shares.
