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

Dundee United have indicated that a quick return to the Scottish Premiership is essential after posting a £2.8 million 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 £5m 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 uni ted’ s financial difficulties,as wages rose 18 percent 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 £2m 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 difficultone 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 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,” said Ogren.