Newcastle Go Into The Red - 30/10/2006

Newcastle FC has blamed its failure to qualify for Europe last season for a slump into the red for the year. Chairman Freddy Shepherd said the Magpies' failure to qualify for the Uefa Cup had 'significantly impacted' its media revenue which accounts for close to a third of total group sales. Sales derived from television and broadcasting rights dropped by more than 5 per cent to £26.5m in the 11 months to 30 June while group revenue fell by nearly £4m to £83m. The net loss was £12m compared to a profit of £620,000 the year before. The figures were released among continuing speculation about whether the club will agree to a bid approach from Belgravia, the Jersey based investment company. Newcastle confirmed that it was still in takeover talks with the little-known private company, although no firm offer had been tabled.