Keep Newcastle up and then then we'll spend, Keegan is told

The St James' Park club insisted it was business as usual for Keegan and his players yesterday as they prepared for Saturday's visit to Anfield, where they have not won in the league for 14 years.

Ashley and Keegan met after Saturday's unlucky home defeat by Blackburn, when the Newcastle manager warned the billionaire businessman that his team are embroiled in a difficult relegation battle and he cannot guarantee their safety.

Newcastle have not won since December 15, when they secured a last-minute victory at Fulham, and they have failed to register a win in Keegan's first seven games in charge.

But Ashley and chairman Chris Mort left Keegan to his own devices at the training ground yesterday. The pair are convinced he can lead Newcastle away from the drop zone, with home games against fellow strugglers Reading, Fulham and Sunderland to come, and a visit to Birmingham next on their travels after the Liverpool trip.

A source close to Ashley said: "Mike has every confidence in Kevin Keegan. He is desperate to keep Kevin as his manager and if they do stay in the Premier League, he will provide funds for him to buy new players in the close season and give the club a fresh start."

Ashley has already ploughed £250million of his fortune into Newcastle to buy the club and clear debts.

The full scale of the club's financial situation when Ashley took over was revealed in their accounts at the weekend. It transpired New-castle spent £5m to get doomed casino plans off the ground, another £1.1m to sack manager Glenn Roeder and the same figure was paid to director Douglas Hall as a 'golden handshake'.

Ashley had to provide £75m just to keep the club afloat.

The accounts show former chairman Freddy Shepherd was being paid £500,000 a year, along with private health benefits, before being replaced by Mort. Shepherd's full compensation package will be revealed in next year's accounts.

Despite the club's earnings from gate receipts and merchandise rising on the previous year, New-castle made a loss of £32.9m, more than £20m greater than in 2006.

The club's wage bill was £62.5m, up more than £10m from 2006, and now represents 72 per cent of turnover, due to the signing of Damien Duff, Obafemi Martins, Joey Barton and David Rozenhal.

The figures would be have been even worse had the FA not paid £6.7m in compensation to the club after Michael Owen was injured.

Meanwhile, Newcastle face being fined over a touchline rumpus during Saturday's home match against Blackburn.

Both clubs are likely to be charged by the FA for failing to control their players. Referee Rob Styles has reported a flare-up that involved nearly every player on both sides, and coaches on the bench, following a spat over a throw-in near the halfway line.

Newcastle's Habib Beye and Blackburn's Morten Gamst Pedersen grappled for the ball as it was held by Rovers boss Mark Hughes. Both players were booked following a prolonged mass melee. Styles clearly feels that, despite taking action, there is a case for the FA to act.

Fines, which rise to a maximum of £250,000 for Premier League clubs, are likely to be imposed.