Early Financial Reports: Newcastle United Have Slashed Wages

Newcastle United's financial accounts for the 2010 fiscal year are due to be released this Thursday, and according to Alan Oliver of The People, the reports will reveal that Mike Ashley and Derek Llambias have slashed approximately £21 million pounds worth of wages since 2009, when the wages spent totaled £71 million.

It is additionally speculated that the ownership group will report a net loss despite these wage cuts and player sales, most notably Andy Carroll to Liverpool for a £35 million transfer fee.*  This, of course, highlights the importance of survival in the Premier League as many of the lost revenues (including ticket and merchandise sales) are explained by the team's presence in the Championship.

*To be honest, I'm not sure that the Carroll fee gets posted to this particular fiscal year.

The takeaway?  Despite the expected loss, I believe that Newcastle are in a better position than several other Premier League teams to comply with the FA's new Financial Fair Play Rules that take effect in 2012-13.  Many of the sides (I'm looking at you, Manchester United) seem to be operating under the assumption that they can simply make the required changes at the last possible minute, while this group is taking a more responsible approach. 

Your thoughts?