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.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.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."We get a parachute payment of £12.5million and then in the Championship itself, you get £2.4million of income."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."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."

Source: Eurosport