Newcastle are riding high

The Magpies, currently third in the top division after one of their most successful seasons in years, reported a leap in half-year profits.

A money-spinning run in the European Champions' League helped swell the coffers at St James' Park.

While manager Sir Bobby Robson's policy of developing young talent, such as striker Shola Ameobi and England midfielder Jermaine Jenas, is also paying off.

Players' wagers

Profits before tax and exceptional items jumped to �11.5m in the six months to 31 January, against �1.4m in the same period a year before.

Chairman Freddy Shepherd said the record results reflected "both the club's participation in the Champions League and a continuing concerted effort by the directors, management and staff to make the club one of the best in Europe".

Newcastle said they had invested heavily in their squad for the Champions League but said the ratio of player fees to turnover remained under the crucial 50% level.

The wage bill went up by 47% from �15.6m to �22.9m, although the figure was swollen by its decision to bring steward and catering services in-house.

Last year, the club pledged to tackle their high wage bill in order to return to profit.

And Mr Shepherd said the company would keep its feet on the ground, despite its record performance.

"We aren't budgeting on the Champions League and we are not getting carried away," he told Reuters.

He insisted the club would not follow some of its rivals by inflating wages to buy expensive players and then finding themselves in debt.

Young squad

Mr Shepherd said the club was now seeing the benefits of this strategy.

"The stadium redevelopment and pursuit of a strategic recruitment policy based on young players of quality, combined with tight financial control, are all now reaping significant rewards," said Mr Shepherd.

The club said the future of all its high-profile players was now secured "in the medium term".

And it had signed long-term contracts with young players Craig Bellamy, Lomana Lua Lua, Steve Harper and Michael Chopra.

It said the average age of the first team squad was just 24.