Newcastle United directors 'may take company private'
Newcastle United's directors are reported to be considering taking the company private, despite significantly reducing full-year losses.
The club has cut its operating loss to £5.1m, compared with £19.1m last year.
Newcastle have had a difficult time since their stock exchange flotation, leading to suggestions the board may opt to take the company private again.
Jonathan Metliss, head of sports business at law firm SJ Berwin, thinks this could be a growing trend.
He said: "There are a number of factors which have created this situation since the bubble of floating clubs in 1996 and 1997.
"The market has changed since then, and the City have fallen out of love with clubs whose shares are listed and the share prices often are not reflecting the asset value of the clubs.
"Football is an industry unlike any other, and it is very difficult to equate running a football club with a business as a whole. Shareholders are not getting value for money, and I think that the way these companies are run is not in accord with public companies generally."
Newcastle United's retained loss for the year was reduced to £13.3m, from £19.4m last year. The deficit on player trading was also cut by 38% to £12.3m.
The club's turnover increased by 22% to £54.9m as gate receipts improved because of the greater capacity at St James's Park.
Television revenue also increased thanks to the Premier League's improved pay-out to clubs, offsetting the loss of revenue the club suffered from missing out on European qualification last season.
United chairman John Fender said: "The group has a robust financial base with increasing revenues and a cost base under tight control. With the established playing squad, the enlarged stadium and the continued support of our magnificent fans, we look to the future with confidence."
