Promotion more vital than ever
Warning signs for United as club posts loss of £3.7m
Costly: Dundee United (pic: SNS Group)
Dundee United’s failure to win promotion to the Scottish Premiership has seen the club’s losses soar to over £3.7 million.
The Tangerines, bought by American business tycoon Mark Ogren in December 2018, have recorded a loss of £3,759,220 compared to the previous year’s figure of £218,993, that total eased by £1.4m of sell-on fees.
United, relegated in 2016, are currently leading the Championship and under Robbie Neilson’s guidance are favourites to return to the top flight this season.
However, the three previous campaigns spent in the SPFL’s second tier have come at a substantial cost according to the latest financial figures to June this year.
Annual turnover was noted as £3,124,236, yet wages totalled £4,159,060 – 133 per cent of the turnover. There has also been a significant increase in wages of £1.13m, up 39 per cent on the previous 12 months.
Shareholders will have the chance to grill the board of directors about the latest figures at the annual general meeting today.
Ahead of the gathering a board statement said: “The significant loss emphasises the level of financial investment made by Mark Ogren to the club.
“[It also] includes the costs associated with undertaking the restructuring that was required, including a complete overhaul of the first-team playing squad and coaching staff, and restructuring the academy.
“The performance of the team in recent years has led to the company making significant financial losses, which have required substantial investment to maintain the company as a going concern.
“The principal risk to the business is therefore the possibility of the team remaining in the Championship for a prolonged period of time.
“The new owners are committed to providing the required funding to the club to maintain it as a going concern in the Championship, and also to provide the platform to enhance the team’s prospects of promotion to the Premiership.”