Former Newcastle United chairman Freddy Shepherd has hit back at criticism over his signing of Michael Owen.

Magpies' managing director Derek Llambias claims the decision by Shepherd to spend sponsorship money up front on Owen in 2005 has left the club financially crippled.

But Shepherd retorted in the Sunday Sun: "They (the current board) are trying to camouflage the problems they have created and distance blame from themselves with a pathetic PR campaign.

"Newcastle bought England's top striker without borrowing from the bank or being landed with any interest charges. The fact we paid up front was the factor that allowed us to win the Owen race.

"It was a gilt-edged deal from a financial perspective even if the injuries that have blighted Owen's time at Newcastle meant it didn't quite work out on the football front.

"The fee for a world-class star like Owen was £4m-a-year over the period of his deal, and with turnover in the £90 millions it equated to less than four per cent of turnover.

"I think fans will question how such a miniscule proportion of turnover could spark a cash crisis in 2009."

Shepherd added: "For Alan Shearer in 1996 the fee was £15m. We borrowed at high interest rates when turnover was much less, so it was a far costlier and riskier deal in real terms than Owen's.

"I make absolutely no apologies for trying to bring the best to Newcastle. Shearer worked brilliantly, Owen didn't. But that is how football works.

"I would challenge anyone to compare the cash I backed managers with to the sort of break-even transfer policy that now appears to be in place."