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Warning for NE economy after relegations

The North East’s economy will suffer after the relegation of Newcastle and Middlesbrough at the weekend, according to a football finance expert.

Prof Tom Cannon, of Liverpool University, said the minimum loss to the region’s economy would be around £50m, but that the overall impact could be hundreds of millions of pounds.

Prof Cannon, professor of strategic development at Liverpool University’s school of management, told the BBC that much of the money would have stayed in the region, so all industries would be affected, from construction to catering.

He said: “As a minimum you are talking about £50m coming out of the regional economy at a time when it’s depressed anyway.

“If you look at the kind of figures which we have done which look at the way that money recycles we would be talking of about £100m coming out of the regional economy - most of that concentrated on the Newcastle Gateshead area.

“And of course that doesn’t take into account the effect that lack of confidence, lack of self belief has on everybody from entrepreneurs to regional developments and government people so I think you are talking about not tens but hundreds of millions.”

Alan Clarke, chief executive of One North East, said: “All three clubs are important to the economy and profile of the North East and that will continue.

“There are still many reasons to be positive about the North East, not least the performance of some of our businesses during the recession.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .