Dundee United say promotion to Premiership is 'paramount' after posting £2.8m losses

Relegation ‘extremely challenging’ for Tannadice club as finances suffer

Dundee United owner Mark Ogren reflected on an 'extremely challenging' financial picture following last season's relegation. (Photo by Mark Scates / SNS Group)

Dundee United have indicated that a quick return to the Scottish Premiership is essential after posting a £2.8million loss following last season's relegation to the Championship.

The club's annual financial report for the year to June 2023 showed a deficit of £5million before player sales and the sell-on free received for Harry Souttar's transfer from Stoke City to Leicester City were taken into account.

The cost of sacking managers Jack Ross and Liam Fox, and bringing in Jim Goodwin, also added to United's financial difficulties, as wages rose 18 per cent to £6.9m.

The club overspent on signing players and - coupled with less prize money and a drop in attendances in the Championship - resulted in them slashing their budget for this season by £4.6m.

Chairman Mark Ogren said: "Dropping down to the Championship is extremely challenging financially for the business.

"The board estimate a £2-3m drop in turnover. To overcome this, there have been fundamental changes within the club during the summer - these changes include greater cost control, cohesion, and communication across the club.

"We are already seeing the positivity in these changes. Our total costs from July to December in season 2023/24 are more than £2 million less than at a similar stage in the 2022/23 season."

The report stated that the US-based owner "remains committed" to the club with the "paramount" objective of promotion described as "vital for the club to be back on track towards financially self-sustainability".

Reflecting on relegation, Ogren added: "Quite clearly the 2022/23 season was a difficult one for the club. What started as a vision to continue progress and challenge within the top six of the Premiership once again, ended with the ultimate disappointment of relegation.

"Unfortunately, as wage costs increased significantly following investment in the playing squad at the beginning of the campaign, prize money, crowd receipts, and other income fell as the club's fortunes on the park weakened."

Goodwin was unable to keep United up but the former St Mirren and Aberdeen manager was backed in the summer with a two-year contract extension.

"The board remains convinced that he and his staff will lead the club to future success," the chairman said.