Ashley admits he failed to examine books before buying Newcastle

In an interview with the club magazine, Ashley admits that he did not perform due diligence before buying Newcastle from the Hall family but claims that the club would be in worse state had he not taken it over.

'Financially, Newcastle United was in a difficult position because I really do think that it had over-extended itself,' he said.

Ashley: bought Newcastle from the Hall family just four days after hearing it was for sale

'We first heard about the potential sale on a Saturday and had the deal done by the Wednesday, so if you are asking if we did due diligence before buying, then the answer has to be no.

'One of the most unfortunate things about Newcastle United's finances at that time was the amount of money still owed on players signed in comparison to the amount of income that was due in off players who had gone.

'There is still £27m net to pay on transfers that were done before I came. So probably in the latter years before we came in you could argue that the club was beginning to lose its way.

'It seemed as though the club was in a very downward spiral, one it would have found very hard to come out of.'

This may account for Ashley's reluctance to invest heavily in the transfer market this summer but he insists he has been more than willing to put his hand in his pocket.

'Apart from the purchase of the club and the associated costs that come with that, I've put in a further £100m to reduce debts, yet we still have the outstanding debt of the monies still owed on player transfers,' he said.

But Ashley denies he is looking to sell Newcastle. Asked if he regretted buying the club, he said: 'Absolutely not' and described the clubs as 'one of the jewels, one of the diamonds of the Premier League'.

Wise: transfer role

Keegan: tensions

He said his habit of wearing black and white replica shirts and sitting with fans is 'not a gimmick'. Newcastle's owner said: 'I wear my strip and go in with the fans because that's how I've always gone to football and I enjoy it.

'Nothing beats the atmosphere of being in with the fans ... it's tremendous to be part of.

'I feel like they do. I'm in with the fans and if we are not playing well I'm thinking to myself: "How can this be? We are Newcastle United and we should be doing better than this".'

On the question of manager Kevin Keegan's tense relationship with Dennis Wise, Newcastle's executive director (football), Ashley said: 'Kevin is a great manager and he is happiest working with the players.

'But there's so much involved in running a club that you must make sure people aren't spread too thinly. How could Kevin devote all his time to the first team if he also had to look after the academy? That's where Dennis Wise comes in.'

Keegan is more concerned about Wise's say in transfer dealings but will be hoping that the club finally manage to complete the protracted £10m transfer of Fabricio Coloccini, the Argentina defender, from Deportivo La Coruna today.