DUNDEE have announced a £2.8million loss for last year – with the club citing their Premiership promotion push as the reason for their staggering deficit.
The published accounts show a loss of £2,862,820 for the period between May 2022 and 2023, despite the club’s salary on wages actually dropping in that time.
2
2
The Dens Park club’s expenditure on salary fell from £3.2million to just over £3million in 2023 as the club chased the Scottish Championship title.
The Dens Park side have explained how they pushed the boat out to secure promotion with investors covering the shortfall of a Championship budget to ensure they had a Premiership-level squad.
A statement read: “The company has made a loss for the year of £2,862,820 (2022-£892,440).
“At the year-end, there was a deficit of £6,249,728 (2022-£3,392,308) of shareholders’ funds.
read more football stories
“With the dedication of the owners to get promoted from the Championship we kept a Premiership budget with a Championship income.
“This resulted in a financial loss but this was expected in order to return Dundee Football Club to Scotland’s top flight.”
Owners Football Partners Scotland have covered the losses and will continue to invest into and support the club despite the growing concerns.
It comes after Dundee announced a deficit of £900,000 between 2021 and 2022, with the Covid-19 pandemic leaving them particularly cash-stricken.
But despite the recent staggering figures, the club are adamant that financial projections show positive signs and they insist improvements will be made over the next two-year period.
The statement continued: “The projections reflect the expected trading results for season 2023/24 as well as for season 2024/25, which are expected to be be similar and then improving on the results reported for year end 31 May 2023.
“These projections have been drawn up on the basis of conservative assumptions as to the league position to be achieved by the football club, attendance levels at matches, and the management of all costs, including expenditure on players costs.
“The financial projections which have been prepared anticipate that the company will be able to meet its ongoing financial commitments from funds generated from operations.
“As the company does not have formal funding facilities in place to cover any financial deficits which might occur during the forecast period, the directors recognise that the company might again require to obtain further financial support from the company’s majority shareholder, Football Partners Scotland L.P.
“The board of directors has received an undertaking in writing from Football Partners Scotland L.P. that it will continue to make additional funds available to the company in situations where these funds are required.”
Keep up to date with ALL the latest news and transfers at the Scottish Sun football page