Newcastle reveal details of financial black hole

Newcastle managing director Derek Llambias last night revealed the financial black hole the club fell into after relegation.

Their revenue was halved from £100million to around £50million - the annual wage bill alone at the time amounted to more than £70million - and  owner Mike Ashley made swingeing cuts.

Llambias said: "Basically, from £100million revenue, we have dropped to £50million. A good chunk of that is TV money from the Premier League, so from the Premier League, it's £40million.

"We get a parachute payment of £12.5million and then in the Championship itself, you get £2.4million of income.

"There's a massive void there that needs to be covered. You get a drop in your season tickets, you get a drop in your attendance, retail, it all drops.

"That shortfall needs to be made up. Mike is picking the shortfall up now and it's very, very difficult. But we are getting through it."

Llambias also confirmed that St James' Park will be known as the sportsdirect@St James' Park Stadium for the rest of the season.

Fans were predictably upset. Mark Jensen, editor of fanzine The Mag, said: “The idea of turning the history of St James’ Park into something that resembles an e-mail address absolutely beggars belief.”

Rod Fraser, who writes for on-line fanzine True Faith, added: “Just when you think it cannot get any worse - it does.”

In a statement, the club said: “We aim to maximise our commercial revenues through a club sponsor kit deal and stadium naming rights.”