Chairman Mark Ogren is confident Dundee United’s Premiership return can help the club finally get away from big financial losses.
The Tannadice club announced a loss of £2.3 million for the last year, up to the end of June, which saw United relegated and bounce back by winning the Championship. United chief executive Luigi Capuano has significantly reduced the club’s costs and spending and Jim Goodwin has returned United to the top-flight on a vastly reduced wage budget.
American Ogren has put in more than £13m to the club since he purchased it back in 2018 and wants to get the club back to a more self-sustainable position. Ogren said: “These accounts reflect the significant steps taken over the past 12 months to put Dundee United Football Club on a more sound and sustainable footing. While a loss is never something we take lightly, it was anticipated due to our relegation to the Championship.
“With the board’s support, along with improvements in our processes and working practices, the reduction in our operating losses and all of the positivity that comes with being back in the Premiership, we are well-positioned for further growth and improvement.
“This progress is a testament to the hard work of everyone throughout the club, from senior leadership through every department, along with the continued loyalty of our absolutely incredible supporters.”
The Tannadice club has paid the price for recent, lavish overspending in recent seasons and then their relegation to the Championship. Capuano has worked hard to get United back on a more even financial keel, with American owner Ogren reluctant to keep funding the losses.
The key figures from United’s annual accounts show a 45% reduction in their operating loss, to £2.3m from £4.3m the previous year. There has been a 30% reduction in total costs and loan liabilities are down 34% from £10.1m to £6.6m.
United have slashed their wage bill from £6.9m to £5.2m and made a £700,000 profit on player trading, selling the likes of youngster Brandon Forbes to Norwich City. Other football department costs were also hacked back by £1 million, while consultancy fees paid by the club dropped by 84%.
That was on the back of a reduced turnover that dropped to £6.4 million, caused by relegation and reduced away attendances. It is predicted that turnover will go above £8m next year with the club back in the top-flight. United are currently sitting in fifth place and pushing for a top six and possible European place.