Newham and Essex Beagles lost £210m in the last financial year and could go out of business by the end of 2011, according to a report seen exclusively by the lufbra echo. The London club's dire financial performance has been blamed on ever increasing oil prices meaning it is costing a fortune to fly athletes in from all corners of the globe. "Obviously these are very disappointing results" said a senior aide to the Chairman "the important thing is that we have a clear plan on how we deal with this debt".
However, insiders are privately "gravely concerned" that the club will have nowhere to go if they fail to land a lucrative new contract with a private sponsor soon. "The decision not to award us the Olympic Stadium (it went instead to West Ham United) was a major blow" revealed an anonymous source "the club had always budgeted on getting the increased revenue from that. I do not know how we will cope without it - the truth is that there is no Plan B".
Newham spent £150m on wages alone last year and Team Manager Bob Smith, has been told that he will "have no money to spend" for the foreseeable future. It is also understood that Smith has himself taken a 20% pay cut as part of the club's austerity measures. Refusing to comment on the financial situation, Smith used his weekly press conference to talk up the club's "superb squad" and "to notch morale" heading into the National Road Relays next weekend. "We smashed it up last year" said Smith "and there is no reason why we can't do the same this. We are the number one club in Europe right now and will be proving it in the coming weeks and months. Belgrave are history".
The North London club were fined heavily in January after they breached transfer rules. This - coupled with a failed takeover bid from a group of wealthy Arab businessmen - is thought to have led the club into the dire position they now find themselves in. Rumours that the likes of Robbie Schofield and Mo Farah will have to be sold to help pay the bills are unlikely to appease the already uneasy fans. A spokesman for the Newham Supporters Trust blasted the "lazy, good for nothing management" that were "leading the club into terminal decline." Calling for a "fan centred" approach, the source claimed that a 10% increase in season ticket prices were "driving fans away".