Dundee United post £2.8m loss after 'extremely challenging' relegation season
- Published
Jim Goodwin - who was United's third manager of last season - is attempting to steer the club back to the top flight
Relegation from the Scottish Premiership contributed to Dundee United posting an annual loss of £2.8m to June 2023.
The cost of sacking managers Jack Ross and Liam Fox, and bringing in Jim Goodwin, added to United's financial challenges, as wages rose 18% to £6.9m.
The club went overbudget in 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.
"Dropping down to the Championship is extremely challenging financially for the business," chairman Mark Ogren said.
"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."
The club's annual financial report notes that returning to the Premiership is essential for United to get back to being financially self-sustaining.
The accounts show United booked a £5m loss - up from £1.9m the year before - before player sales were taken into account. However, the sell-on fee for Harry Soutar after his move from Stoke City to Leicester City mitigated some of those losses.
"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," said Ogren.
But the club backed Goodwin's efforts as United continue to challenge for promotion.
"The board remains convinced that he and his staff will lead the club to future success," the chairman said.