Newcastle managing director Lee Charnley has said the club did not expect relegation from the Premier League last season after investing money in new players during the summer of 2015 and January 2016.
Speaking about the accounts for 2015/16 where profits dropped from £32.5million to £4.6million, Charnley is quoted by the Chronicle as saying:
“The 2015/16 season was extremely disappointing for everyone connected with the club. Significant sums of money were spent to strengthen the playing squad in the summer 2015 and January 2016 windows, which also resulted in an increase in our annual wage bill. In the context of this spend, relegation was both unacceptable and totally unexpected.”
The finances of the football club are likely to look much worse this time next year when the accounts of the 2016/17 season are released. In the Championship, the club have missed out both on televised match income and final league position financial rewards.
Newcastle have made just £720,000 from TV matches in the Championship this campaign, compared to £12million last season, and with a huge rise in the Premier League TV rights deal this season, it means a club that finishes 18th will get £30million more than the Magpies got last year.
A return to the Premier League will certainly improve the club’s finances but the financial hit of relegation is something that will take some time to recover from.