Source: PA
Newcastle reveal cost of relegation
Newcastle have revealed a loss of £17.1million as a result of their relegation from the Barclays Premier League.
However, the drastic action the Magpies took to address their financial situation in the face of a reduction in turnover of 39% - from £86.1million during the year covering the 2008-09 season to £52.4million - means their losses increased only slightly from £15.2million.
But the annual accounts for the year ending June 30, 2010, which were submitted to Companies House on Wednesday, also show that owner Mike Ashley had to inject a further £42million into the club despite an increase in gate receipts as more than a million fans attended games at St James' Park.
The latest figures do not reflect Newcastle's return to the top flight at the end of last season, with promotion worth anything up to £60million to successful clubs, nor Andy Carroll's £35million departure to Liverpool in January.
Managing director Derek Llambias said: "It has been a significant achievement to keep our overall loss at a level similar to the year before despite the impact of relegation.
"Our ability to do this has been helped immeasurably by the continued financial support of Mike Ashley, who injected a further £42million into the club last year interest-free."
