Magpies lose £9m
Newcastle have announced a £9m (€13.2m) loss after failing to qualify for the Champions League in consecutive seasons despite a huge outlay on players.
The Barclays Premiership club made £8.3m (€12.2m) profit the previous year but in preliminary results for the year ending July 31 2005, a total operating loss of £9m (€13.2m) has been announced.
Chairman Freddy Shepherd said: “While the team progressed to the semi-final of the FA Cup and quarter-finals of the UEFA Cup competition, the club’s performance in the Premier League was disappointing and below the level we demand.
“Since the end of the season, the board of directors has worked very hard to complete the signings of some exceptional players, culminating in the signing of Michael Owen from Real Madrid. This has been a period of major investment in the playing squad.
“The board has made available the funding to secure one of the most exciting playing squads in the Premier League and hopes to bring the success our magnificent supporters desire.”
The Magpies’ hierarchy continue to invest on the pitch and before signing Owen, also spent big on Albert Luque, Scott Parker and Emre.
Turnover for the year dipped slightly to £87m (€127.7m) from £90.2m (€132m), attributed to a reduction in television revenue.
The sale of Jonathan Woodgate in 2004 and the filming of football film “Goal” at St James’ Park helped boost revenue.
The average attendance for domestic league and cup matches was 50,264 compared to 51,715 last season and 28,755 for UEFA competitions.
“Although income from the UEFA Cup reduced from the prior year, this was more than offset by increased income from the FA Cup following the club’s progression to the semi-final,” the board said in a statement to the London Stock Exchange.
