Football

Allardyce cost revealed

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Newcastle had to pay out £4.6million to Sam Allardyce and his staff after dispensing with his services.

Financial figures for the period to June 30, 2008, which have just been signed off, revealed the club handed over a total of £4,597,000 after showing Allardyce the door in January last year.

In addition, the results confirm Ashley's claim he has poured £100million into the club since completing his £134.4million takeover, and reveal he has injected a further £10million into the business since the end of the reporting period.

Newcastle United Football Company Limited, part of the St James Holdings Limited group set up by Ashley to acquire the club, reported increased turnover of £98.8million, up from £87.1million the previous year, mainly as a result of the new television deal for Barclays Premier League clubs.

Wages and salaries amounted to £62.3million, up from £52.1million, and although the ratio between wages and turnover fell, it still amounted to more than 70%.

The figures also show the club received compensation of £6.7million for the knee injury striker Michael Owen suffered at the 2006 World Cup finals and his subsequent treatment and rehabilitation. Overall, the club reported a loss of £20million for the year compared to £31.4million in 2007.

Ashley has also agreed to continue to finance the club after taking it off the market late last year following an unsuccessful bid to sell it.

A note to the report reads: "This funding, together with newly-agreed bank facilities, has been incorporated into the directors' cash flow forecast for the group.

"These forecasts indicate that the group can continue to meet its debts as they fall due for a period of at least 12 months from the date of approval of these financial statements.

"The directors have also received a commitment from its parent undertaking, St James Holdings Ltd, and from the ultimate controlling party, Mr MJW Ashley, that they will continue to provide the group with financial support so that it can meet its debts as they fall due for a period of at least 12 months from the date of approval of these financial statements or up until the date of any changing control. On this basis, the directors have prepared the financial statements on a going-concern basis."

Copyright (c) PA Sport 2009, All Rights Reserved.

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Topics:
Football
Michael Owen
Premier League
Newcastle United

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