Newcastle's shaky financial picture revealed by owner Mike Ashley

22 January 2009 20:16
Toon Army: Newcastle recorded a£20million loss in 2008 Newcastle's turnover rose from£87.1m to£99.4m over the last year to reflect the Premier League’s new three-year television deal. The Magpies have a wage bill of£62.6m, up from£53.2m, which eats up more than 70 per cent of the club’s annual income. Overall, United recorded a loss before tax of£20.3m, which was less than in 2007, when it lost£34.2m.And the accounts, prepared by accountants Ernst and Young, reveal Ashley has ploughed in a further£10m of his own money since the end of the last financial year.   More... Newcastle's friendly fire: It's all right for my boys to fight, says battling boss Kinnear Tear-up at Toon - Newcastle pair in training bust-up and Kinnear lets it go Ash Wednesday: Smokin' Joe Kinnear and his muddled mind just can't stop making gaffes How are the Premier League clubs faring on the injury front? NEWCASTLE UNITED FC NEWS FROM ACROSS THE NET They have been signed off on the basis Ashley has given assurances he will continue to finance operations into the future, which comes just weeks after he revealed the club is no longer up for sale.A note to the financial statement adds: 'This funding, together with newly-agreed bank facilities, has been incorporated into the directors’ cash flow forecast for the group.'These forecasts indicate that the group can continue to meet its debts as they fall due for a period of at least 12 months from the date of approval of these financial statements. Big pay-off: Owner Mike Ashley with former manager Sam Allardyce who, along with his management team, received a£4.6m pay-off last January 'The directors have also received a commitment from its parent undertaking, St James Holdings Ltd, and from the ultimate controlling party Mr MJW Ashley that they will continue to provide the group with financial support so that it can meet its debts as they fall due for a period of at least 12 months from the date of approval of these financial statements or up until the date of any changing control.'On this basis, the directors have prepared the financial statements on a going-concern basis.' Hard times: Current boss Joe Kinnear has been restricted in his transfer activities this January NUSC spokesman Michael Ord said the new accounts make worrying reading for the club's supporters.He said: 'Anyone who had any doubts regarding the parlous state of Newcastle United only had to watch the farcical second half at Ewood Park on January 17, then glance at the league table, to see that the chickens are well and truly home to roost.'While other clubs act to improve their squad and pick up points, Newcastle – with just one point from the last four league games – are proving long on talk from the manager and short on action.'While the playing staff are stretched to the limit, the supporters are perhaps beyond that – fractious arguments between sections of travelling fans at Hull and Blackburn are bad signs, yet almost understandable in the current situation.'  

Source: Daily_Mail