Newcastle United Football Club has revealed an operating loss of £33.5m for the year ending June 30th 2010 covering the club’s season in the npower Championship.
The figure is down from £37.7 million in 2008/09 whilst the club’s overall debt remains at £150m with £25m worth of bank borrowings replaced by a £25m interest free loan from owner Mike Ashley, bringing the total loaned by Ashley to £139.8m.
Newcastle United’s managing director Derek Llambias attributed the fall in media and TV revenue as a significant factor.
"Our overriding aim in 2009/10 was to secure promotion back to the Premier League at the first attempt. Relegation presented a considerable challenge for us financially," Llambias said.
He added: "With such a marked reduction in turnover, largely due to reduced TV and media revenue, we needed to cut our operating costs accordingly without jeopardising our ability to return to top flight football straight away.
"We succeeded in reducing our wage bill considerably whilst maintaining the basis of a Premier League squad."
The club reduced operating costs from £98 million in 2008/09 to £74.4 million in 2009/10 as well as wages falling from £71.1 million to £47.5 million. But due to the reduction in turnover, from £86.1 million in 2008/09 to £52.4 million in 2009/10, the wages to turnover ratio increased to 90.6 per cent in 2009/10, up from 82.6 per cent in the previous year.