Get the latest NUFC transfer and takeover news straight to your inbox for FREE by signing up to our newsletter Subscribe Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

When Newcastle United crashed unceremoniously into the Coca-Cola Championship many Geordie fans wondered just where the despair would all end.

Talk of being the “next Leeds” was rife on Tyneside, and the potential of stooping further down the Football League ladder was a genuine fear with sides like Nottingham Forest also tumbling the way of the Elland Road club into the third tier.

However, it didn’t turn out like that. And while a host of Toon tycoon Mike Ashley’s decisions haven’t been popular at St James’ Park, the Newcastle owner has stuck to his guns, stuck to his plan. And while clubs like Portsmouth and Glasgow Rangers have perished amidst the choking global economic crisis, the Magpies have emerged on the other side in the black.

We're testing a new site: This content is coming soon

Since Ashley took over in 2007 he’s recorded yearly losses of £34.1m, £37.7m, £33.5m and £3.9m when the financial figures have been announced, but yesterday the latest set of figure revealed a profit of £1.4m.

After episodes of controversy during the Ashley reign with stadium naming rights, relegation, the exits of United legends like Alan Shearer and Kevin Keegan and unpopular player departures like £35m man Andy Carroll, Kevin Nolan and Joey Barton, managing director Derek Llambias took delight in breaking what he described as “boring news”.

Because while it lacked a bit of X Factor, it means that as Pompey and Rangers slum it out in the lower leagues in the UK and in the week when Coventry City entered administration once again, Newcastle are in a super state of financial health and there is every reason to feel optimistic about the future.

Indeed, as United prepare for next season’s cash bonanza of £70m per head for the Premier League big guns thanks to the new TV deal, the days of astronomical wages are behind them.

So too are paying installments for players that arrived with an inflated pay packet and over- rated reputations – even Spanish flop Xisco is no longer on the payroll!

When United published a controversial blueprint back in 2010 which stated they would no longer sign “trophy players”, it felt like another controversial chapter of the club’s history was unfolding.

But what has transpired since has seen signings like Moussa Sissoko, Mapou Yanga-Mbiwa, Massadio Haidara and Mathieu Debuchy come through the door.

True, Newcastle are in 13th place in the Premier League and no supporter will be popping champagne corks on hearing that the financial figures are good.

Yet what is in place is a solid foundation to move forward, the team is growing, the stadium is approaching for a sell out for most games and ticket prices are affordable.

And that’s without mentioning the Europa League – which Llambias says United are going hell for leather in order to end the trophy drought that currently stands at 44 painful years.

Llambias said today: “We’re pleased.

“These accounts are boring and that’s a really good thing. We’re not sitting here and saying we’re in debt.

“This proves we are sticking to the working model that we said we would do. It’s working.”

Even the Toon MD said he was left bored by discussing United’s healthy financial figures.

But what does it all means for United supporters and what does it translate to as far as football is concerned?

Investment on the pitch is the primary concern of most Toon fans, and the hope is that this summer will see both the development pool AND the first team squad see some additions.

Of course, some players will move on like they do in any close season, but like last summer Newcastle will aim to retain their big hitters – unless there is an irresistible bid for one of the big boys.

Even then, though, Llambias says that United would demand £25m for any of their big names.

Next season will also see Wonga displayed on the Magpies’ shirt and there is another big announcement due before the end of the season on the commercial front.

Llambias added: “We’ve got one more commercial deal to announce which we’re really happy with.

“That will be reflected in our accounts next year. People will be surprised and happy what we’ve done on that side.

“We will announce that before the end of the season.

“It’s the biggest deal that the club has ever had.

“They’re nowhere near in comparison to the big boys but for us we have achieved and we’ve punched above our weight.”

Perhaps the only worry for United is that more teams follow their lead and intensify their scouting network by following the lead of chief scout Graham Carr.

Llambias joked that Carr may have to start attending games in disguise in a bid to put others off the scent!

He added: “The model works and it’s not just viable as a business plan but it’s also viable as a business on the field.

“Last summer we brought one player in because we thought we had enough coming through.

“We kept our squad. That was a major factor for us.

“We’re not joking when we say that if anyone made a call about our players it was £25m.

“Sooner or later people go away and that’s how we kept our players.

“Injuries and not enough depth plus the cups and it became a disaster.

“But we’ve done great business in January and stayed within our model.

“We had a net £31m spend in January and quite honestly was an achievement for the quality we bought.

“That’s this year. Last year’s accounts we were still very pleased with the way we run the club.

“We’re trying to bring in affordable football, stability and entertainment.

“With that combination we’re getting there.”

And all of it seems a world away from when United crashed into the Championship when only trips to Scunthorpe and Barnsley were flickering on many United fans’ radars.