Derek Llambias, the managing director of English soccer club Newcastle United, has attempted to explain the financial predicament that has led the club to rename the famous St James' Park stadium.

The stadium will now be known as the 'sportsdirect.com @ StJames'Park Stadium' in an attempt to attract a potential naming-rights sponsor. Sports Direct is the company owned by Newcastle's owner, Mike Ashley, who recently took the club off the market after failing to find a buyer.

Llambias told BBC Newcastle that the club's relegation from the Premier League had had a huge impact on its finances. "Basically, from £100 million revenue, we have dropped to £50 million," he said. "A good chunk of that is TV money from the Premier League, so from the Premier League, it's £40 million. We get a parachute payment of £12.5 million and then in the Championship itself, you get £2.4 million of income.

"There's a massive void there that needs to be covered. You get a drop in your season tickets, you get a drop in your attendance, retail, it all drops. That shortfall needs to be made up. Mike is picking the shortfall up now and it's very, very difficult. But we are getting through it."

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Llambias' explanation, though, is unlikely to carry much weight with fans. In a statement earlier this week, the club said: "We aim to maximise our commercial revenues through a club sponsor kit deal and stadium naming rights." The stadium was then renamed on Wednesday.