NEWCASTLE United’s wage bill is still at a dangerous level according to the club’s 2008 accounts that were published yesterday.

The Magpies now have a wage bill of £62.6m – an increase of £9.4m from 2007 – and wages account for more than 70 per cent of the club’s annual income.

Football analysts generally claim that a 50 per cent ratio represents a sustainable ceiling.

But the likes of Fabricio Coloccini and Jonas Gutierrez arred last summer to join established high earners such as Michael Owen, Mark Viduka and Shay Given, so the 2008 figures paint a bleak picture in terms of long-term financial stability.

Mike Ashley has attempted to counter the problem by offering Owen, Nicky Butt and Steve Harper new contracts on lower wages than they are currently earning, but the scale of United’s wage imbalance suggests more cuts might be necessary if stability is to be achieved.

The wage bill was the headline figure in yesterday’s accounts, but further revelations reflect the fluctuating fortunes the club has endured in the last 12 months.

The accounts, which were signed off by Ernst & Young on the basis that Ashley has promised to continue financing operations into the future, confirm the sportswear magnate has invested more than £100m in order to reduce Newcastle’s debts. He has pumped in an additional £10m since the end of the last financial year in working capital.

However, Ashley’s investment is essentially a loan, which will be repaid in full provided the club is sold for more than £240m.

Newcastle United is owned by St James Holdings Limited, a company which boasts Ashley as its sole owner, and which also released its accounts yesterday.

Those accounts show the company (St James Holdings Ltd) is in debt to Ashley to the tune of £237,881,000, and reveal that if the company is sold, Ashley has a right to call in his debt. That means it would be financially damaging for him to sell Newcastle for less than £238m, unless he could persuade a new owner to take on some of the debt he has removed from Newcastle’s books.

Those books also reveal that former manager Sam Allardyce and his management team received a combined pay-out of £4.6m when they were dismissed last January.

However, the Magpies did receive a total of £6.7m in compensation for the injury Owen sustained while with England during the 2006 World Cup.

In total, Newcastle made a pre-tax loss of £20.3m in 2008, a figure that actually represents an improvement from the previous 12 months, when they lost £34.2m.

Turnover rose from £87.1m to £99.4m, largely as a result of the improved three-year television deal that is due to be re-negotiated later this year. Matchday revenue declined during 2008.

A note added to the financial statement said: “This funding (Ashley’s commitment to further financial assistance), together with newly- agreed bank facilities, has been incorporated into the directors’ cash flow forecast for the group.

“These forecasts indicate that the group can continue to meet its debts as they fall due for a period of at least 12 months from the date of approval of these financial statements.

“The directors have also received a commitment from its parent undertaking, St James Holdings Ltd, and from the ultimate controlling party Mr MJW Ashley that they will continue to provide the group with financial support so that it can meet its debts as they fall due for a period of at least 12 months from the date of approval of these financial statements or up until the date of any changing control.

“On this basis, the directors have prepared the financial statements on a goingconcern basis.”

■ Full-back Tamas Kadar suffered a broken leg in Wednesday’s reserves game with Sunderland and will be out for up to six months.