Board sees tough year ahead
Wages hike sees Dundee post £400,000 loss
Dundee owner Tim Keyes has committed to further financial support (pic: SNS Group)
Dundee Football Club has reported a loss of over £400,000, with the Dens Park board predicting further financial struggles in the next 12 months.
The Dark Blues’ loss of £425,748 for the year ending May 31, 2018 reflects an increased shortfall of £71,000 compared to the previous 12 months.
American owner Tim Keyes, through his company Football Partnership Scotland (FPS), remains committed to providing the “necessary support to fund these losses”.
An increase in wages following the arrival of manager Jim McIntyre as Neil McCann’s replacement is largely responsible for the increased loss, according to the Premiership strugglers.
The board also revealed that progress with plans to move to a new stadium near Camperdown Park had been “slower than anticipated”.
In a statement, the club said: “Gate income from Betfred Cup matches helped increase turnover however this was offset by an increase in administrative expenses from higher wage and salary payments as a result of changes made during the year to the management team and the first-team playing squad.
“The directors are forecasting a loss for the year to 31 May 2019.
“The company’s major shareholder, FPS, continues to provide the necessary support to fund these losses as the directors focus on reducing the trading deficit and moving towards profitability.
“Plans to build a new stadium continue to move forward although progress has been slower than anticipated.
“FPS intends to increase its stake and commitment to the company by raising its shareholding to at least 75% of the voting equity. This would allow FPS to claim Group Tax Relief and offset the trading losses of the company against its other business activities.
“The directors would like to thank all of our supporters, shareholders, staff, sponsors and partners for their support as we continue to work together to create a successful team and a robust and profitable business.”
Dundee, currently sitting in 10th spot in the Premiership just four points ahead of bottom club St Mirren, face Rangers at Ibrox tonight.