Premier League wage review is worrying reading for Magpies
Newcastle face uncertain future in Championship with huge wage bill
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Thursday, 04, Jun 2009 10:07
Newcastle United fans concerned by the club's financial future were given a hint of the extent of the problem after the publication of Deloitte's Annual Review of Football Finance.
The report shows the Magpies were the fifth largest spending club when it came to wages, with only the four Champions League clubs - Chelsea, Manchester United, Arsenal and Liverpool - having a higher outlay in the 2007/08 season.
The St James' Park outfit spent £74.5 million on wages throughout the year, compared with Chelsea's table-topping budget of £172 million.
United (£121m), Arsenal (£101.3m) and Liverpool (£90.4m) were the only other clubs that spent more than the Premier League average of £59.8m.
However, following their relegation from the top flight at the end of the 2008/09 campaign, Newcastle will have to slash their budget by more than half due to the massive drop in TV revenue and the expected reduction in income from ticket sales.
Star players and top earners such as Michael Owen, Mark Viduka, Damien Duff, Joey Barton and Fabricio Coloccini are expected to be axed from the playing staff in order to make severe cuts.
The financial future of the club as a whole could also be in jeopardy because of the huge loans taken out by current owner Mike Ashley in order to purchase the club.
The businessman is currently attempting to sell up, with a buyer likely to need around £100 million to complete the purchase, although the club is a far less attractive proposition now after losing its top-flight status last month.