Dundee post loss of £354k and plan to reduce squad

Dundee say 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 £4 million, have warned that the shortfall is likely to continue until a more lucrative TV deal is found for the SPFL or they can attract another 1,000 supporters.

Currently ninth in the Ladbrokes Premiership, they also confirmed they will cut their squad substantially this summer as recruitment and player wages is a major cost. Staff costs were up to £3.2m from £2.9m in 2016.

The six-figure loss came 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 read: “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.

“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.”