Newcastle Utd slide to £12m loss
By BBC News, 27th October 2006
Newcastle United slid to a £12m loss last year after heavy investment in players and a fall in revenues due to its failure to qualify for Europe.
The result is a reversal in financial fortune for the Premiership club which made a £620,000 profit the year before.
Revenues fell by nearly £4m to £83m as an absence of European football reduced match day ticket sales.
Expensive new signings such as England striker Michael Owen, bought from Real Madrid, also pushed up costs.
'Long-term benefits' Newcastle United chairman Freddy Shepherd said the year - which saw the sacking of manager Graeme Souness and his replacement by Glenn Roeder - as one of "transition" for the club.
Newcastle Utd's share price "The board believe that the investment it has made in all areas of the club will deliver long-term benefits and will continue to take every step necessary to maximise potential for success both on and off the pitch," he commented.
After finishing seventh in the Premiership last season, Newcastle qualified for European competition which will boost revenues this year.
The club has been surrounded by takeover speculation in recent months with Jersey-based firm Belgravia Group considering a possible bid.
Mr Shepherd said that while discussions were taking place between the two parties, there was no certainty a formal bid would be made.
Shepherd Out.
Nufcmismanagement view:
A transitional year is it Shepherd? You should have said "Another transitional year, most are under your stewardship of the club, you're a serial failure.