Dundee admit they ‘underperformed’ last season after confirming a loss of £354,071 for the financial year ending May 2017.
The Dens Park club, who posted a turnover of £4m, have warned that the shortfall is likely to continue until a more lucrative TV deal is found for the SPFL or they regularly attract another 1000 supporters to allow them to break even.
The Dee, currently in ninth spot in the Ladbrokes Premiership, have also confirmed they intent to substantially cut the size of their squad this summer after acknowledging that recruitment and payers wages represents a major cost.
Staff costs were up to £3.2m from £2.9m in the 2016 accounts.
The six-figure loss is despite the accounts showing a £737,501 windfall through ‘disposal of players’ following the sales of Greg Stewart and Kane Hemmings to Birmingham and Oxford respectively in June 2016.
Dundee’s majority shareholder, Football Partners Scotland (FPS), have advanced £785,000 in light of the losses, taking the total they have provided to £1.27m.
A club statement last night confirmed: “The results for the year show a loss of £354k. The losses require to be funded and the company received advances of £785k from its main shareholder FPS, making an aggregate of £1,277k.
“It is the intention for these advances to be turned to share capital. The board intend to issue additional shares to a value of £1.5m and this will make FPS the holder of 75 per cent of the equity.
“FPS have also indicated they will transfer their shares to Dark Blue Properties Limited. This is the company which is undertaking the development of the new stadium.
“The company expect to make additional losses in the current year and in each of the subsequent years until a new TV deal generates more money for all the clubs in the SPFL.
“The size of these losses will depend on field success and the level of support from fans.
“The club can currently bank on a core home support of around 3,500 and increase of 1,000 is a target that would put the club essentially into a breakeven position.
“The club believe they underperformed in 2016/17 season, failing to make the top six.
“The change in managers in 2017, has brought a change in the style of play. This necessarily meant the changing of playing personnel and this brings with it costs of an enlarged playing squad.
“It is hoped the size of the first team squad can be reduced next season. The directors believe continuity in the management of the club is the route to success.”