THE performance of Newcastle United on the balance sheet rather that on the playing pitch may lie behind the decision this week of Kevin Keegan to stand down as manager, making him the first managerial casualty caused by the headlong rush of football clubs desperate to float on the stock market.

Investment analysts said the announcement may have been brought forward to avoid hitting material disclosure obstacles in advance of the planned flotation of the Premiership club on the stock market. It is thought that the club would be obliged to disclose as a material fact, or any relevant information about the manager in the prospectus for potential investors. Keegan's departure is seen as similar to the resignation of a company chief executive, without reason, just before flotation. Non disclosure could potentially open the club to a legal charge of failure of duty to provide relevant information on which potential investors could evaluate the equity.

The imminent flotation could, in theory, have affected the train of events which led to Kcegan's departure.

Some discontent has surfaced about the club's inability to capture a major title despite a multi million spending spree on buying prominent players. Newcastle differs from other clubs who have sold their shares to the public, like Manchester United, Spurs and Celtic, in that its finances are overstretched by heavy borrowings, having largely funded its extravagant purchase of players out of anticipated future income. The departure of the charismatic, but high spending Keegan may meet with the approval of major investment institutions but the spend now pay later fiscal strategy is not a good basis to convince the punters who matter that Newcastle can move ahead in another equally competitive premier league.