Newcastle Utd record £12m loss

Newcastle United recorded 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 in contrast to the previous financial fortunes of the Premiership club which had genertaed £620,000 profit the previous year. Revenues dropped by almost £4m to £83m due to the clubs absence from European football reducing match day ticket sales, coupled with costly new signings such as England striker Michael Owen, increasing the clubs costs.

The clubs chairman Freddy Shepherd labeled the year one of "transition" adding that 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,

This year courtesy of a seventh place finish in the Premiership last season, Newcastle qualified for European competition which will improve revenues.

The club remains the centre of takeover speculation with Jersey-based firm Belgravia Group considering a possible bid, but Shepherd says of that - while discussions were taking place between the two parties, there was no certainty a formal bid would be made.