Source: Eurosport
Llambias reveals Newcastle's financial plight
Newcastle managing director Derek Llambias has revealed the depth of the financial black hole into which the club was plunged by relegation.[LNB]The Magpies' revenue was halved from £100million to around £50million - the annual wage bill alone at the time amounted to in excess of £70million - as a result of the drop from the Barclays Premier League, forcing owner Mike Ashley to make swinging and painful cuts.[LNB]Llambias told BBC Radio Newcastle: "Basically, from £100million revenue, we have dropped to £50million. A good chunk of that is TV money from the Premier League, so from the Premier League, it's £40million.[LNB]"We get a parachute payment of £12.5million and then in the Championship itself, you get £2.4million of income.[LNB]"There's a massive void there that needs to be covered. You get a drop in your season tickets, you get a drop in your attendance, retail, it all drops.[LNB]"That shortfall needs to be made up. Mike is picking the shortfall up now and it's very, very difficult. But we are getting through it."
