Dark Blues losses soar to nearly £2m for last 12 months
Dundee have revealed a bumper loss of almost £2 million as they continue to count the cost of relegation.
The Dark Blues, whose home match against Arbroath yesterday was postponed due to a waterlogged pitch, posted losses of £1,825,669 last year – four times as much as the previous year’s deficit of £425,748.
The Dens Parkers sit fourth in the Championship as they bid to return to the Premiership at the first time of asking.
In a statement released alongside their accounts, the club blamed the costs associated with last season’s relegation battle for their financial plight.
It said: “Quite clearly, 2018/19 was a frustrating and disappointing season with the club being relegated from the SPFL Premiership.
“A loss for the year had been forecast but the actual loss . . . was significantly higher than the previous year’s.
“Revenue from the cup competitions was much lower than the year before and gains from the transfers of players were down, year on year.
“Whilst income fell, total expenses increased by around £590,000, with player and managerial wages forming the major part of this increase.
“In an attempt to avoid relegation, changes had been made to the management team and as the board supported the new manager in reshaping the playing squad, this increased player wage costs.
“Unfortunately, these changes and the additional expenditure failed to prevent relegation and the management team has been replaced, the costs of which are reflected in these accounts.”
US-based businessman Tim Keyes’ Football Partners Scotland (FPS) group owns a majority of shares in Dundee and, with his fellow American John Nelms in charge of dayto-day running of the club, it has committed to continue funding the Dark Blues.
However, the club has now made accumulated losses of over £4 million since FPS took ownership in 2013, and they insist cost-cutting measures will be put in place as they press on with plans to build a new stadium on Dundee’s north western outskirts.
“With significantly reduced revenue from playing in the Championship, the directors are forecasting another loss for the year to 31 May 2020,” said the club’s statement.
“Whilst the board strives to ensure that the club gets promotion back to the Premiership, steps are being taken to reduce costs.
“FPS now control over 75% of the club’s shares and they will continue to provide the financial support for the Company.
“FPS and the board remain confident that the plans to build a new stadium will come to fruition this year and this will play a big part in the future development of the club, both on and off the field.”