Source: Daily_Mail
Forget the finances for now - Newcastle have a task on to avoid a swift return to the Championship
So what are we to make of Newcastle United's financial figures which were announced this week?[LNB]The club lost ?33.5 million as a result of dropping down to the Championship, and recorded an overall loss of ?17.1 million after player trading (clubs who get relegated from the Premier League lose money. Well, more money).[LNB]There was a 39 per cent reduction in turnover and massive fall in the amount of TV revenue (the Premier League is the only place to be, especially for SkySports).[LNB]They lost 4,000 season ticket holders, but still managed to attract more than one million spectators through the gates last season (there was a backlash and protests against the board and relegation, but Newcastle fans still went in their droves to watch a winning team).[LNB] Villain to hero: Where would Newcastle be without Mike Ashley?[LNB] The wage bill was slashed substantially but still the club forked out more than ?47 million to their Championship squad, which was three times the amount paid by West Bromwich Albion who were also promoted last season (promotion came at a price, but they were promoted. Relegation clauses save money on wages in the event of relegation).[LNB] More from Colin Young... Northern Exposure: Pardew problems are small fry compared with Sir Bobby's22/03/11 Northern Exposure: Forget Welbeck... Sunderland fans will be keen to greet Carroll16/03/11 Northern Exposure: Kris Boyd sums up the disaster of Gordon Strachan's Middlesbrough reign08/03/11 Northern Exposure: Sunderland boss Bruce confident of bouncing back04/03/11 Northern Exposure: How being Given's understudy made Harper stronger23/02/11 Northern Exposure: Ignore Quinn's last orders at your peril16/02/11 Northern Exposure: Newcastle's Plan D... ?35m Carroll to journeyman Finn11/02/11 Northern Exposure: Broken promises, sackfuls of cash and a star departure01/02/11 VIEW FULL ARCHIVEThe overall level of debt between the start and end of the financial year remained at ?150 million. (They are still in debt, like every other club)[LNB]Bank borrowings fell by ?25 million and this was replaced by a ?25 million increase in loans from Mike Ashley. All loans from Ashley, which totalled ?139.8 million at the year-end, have been and remain interest free. (Mike Ashley continues to bank-roll the club and has now paid more than ?286 million for the `privilege' of being Newcastle's owner. He may not be the most popular club owner in the world, but where on earth would Newcastle be without him? Newcastle United is his business.)[LNB]Even without the money from Andy Carroll's transfer, Newcastle expect to break even this time next year. But, after a year when the wage bill will fall to 60 per cent of the club's turnover, there will be another hike on wages eventually. (Looks like the Carroll money will be used on transfers AND wages).[LNB]And this is where Newcastle become a football club again, and not a business.[LNB]And that is what really matters to the club's fans, who can now consider claiming the title 'long-suffering'.[LNB]The financial results mean nothing if their Premier League results continue to falter to the point where they are relegated again.[LNB]So the trimming of costs, the investment in the training ground, coaching staff, academy, scouting network and new player contracts will only really mean something if it is translated into results, and performances on the pitch. And now.[LNB]This is the closest and, numerically, the biggest relegation battle in years. No one has a clue who is going down nor how many points will be enough for safety. But just four points ahead of tomorrow's visitors Wolves, Newcastle are in the thick of it at the moment. That only changes when they start winning again.[LNB]Transfer deadline day didn't exactly work in their favour, with Carroll leaving and no replacement found, and the loan signing of Stephen Ireland yet to register. He has been injured, and he has not been alone in the treatment room. Alan Pardew needs Joey Barton and Jose Enrique fit as much as he needs Ireland to play his part.[LNB] Set to return: Joey Barton will face Wolves at the weekend[LNB] Barton's return, and the possibility of Ireland making the bench this weekend, will please Pardew, who knows he cannot afford Wolves to get their first ever Premier League win over his team this weekend.Premier League survival is paramount and has been taken for granted until now, which could be dangerous of course. But it is also the goal that this squad made no secret of setting itself as the number one priority after promotion, which has to work in their favour. [LNB]Although relegation is unthinkable, and does not seem to have been considered in the off-the-record briefings this week, it is a possibility until Newcastle start winning. And once that happens, we can all start considering where all that money will be spent.[LNB] And Pardew and his coaches and scouts can start to put targets in front of Derek Llambias and Mike Ashley and build on what has largely been a promising season and make the most of all the finances at their disposal. If they invest it wisely, no one will bat an eyelid at the figures in two years' time.[LNB] Enlarge In need of investment: Only two of Newcastle's squad were called up for international duty[LNB] This Newcastle squad does need investment. Last week only Leon Best and Cheik Tiote were away on international duty. A lot of Premier League clubs were lucky to field two five-a-side teams in their first team training sessions, which can only benefit Newcastle now of course, but is an indication of the squad Pardew is working with. [LNB]The discovery of players like Tiote, Hatem Ben Arfa and possibly, hopefully Ireland shows the scouts know their stuff and how to spend money wisely. They have set the bar high.[LNB]And the next two months will determine if they can match those standards, and where the club's finances will be spent this summer.[LNB] Newcastle hope Best can avoid surgery after ankle injury flares up againNewcastle eye Long after Reading striker impresses on Ireland dutySportsmail's experts deliver their verdicts on the season so far...All the latest Newcastle news, features and opinion[LNB] Explore more:People: Hatem Ben Arfa, Mike Ashley, Andy Carroll, Joey Barton, Leon Best, Derek Llambias Places: Newcastle, Ireland
