Ogren upbeat despite United posting £2.5m loss
Dundee United Football Club has posted a loss of more than £2.5 million for the latest financial year.
Accounts to the year end June 2021, show the Tannadice club recorded a loss of £2.52m, compared to the previous year’s loss of £3.01m.
Turnover was £3.79m, down slightly from £3.91m in 2021, with the wages to turnover ratio up from 120% to 132%.
The latest figures do not include the transfer sales of Lawrence Shankland and Kerr Smith.
Despite the loss, USA-based owner Mark Ogren is confident 2022 will see the Tangerines turn the corner financially, providing they avoid what would be a disastrous relegation.
He said: “The board is confident looking forward without the detrimental impact of Covid-19 that the club will be in a much stronger financial position and will no longer be reporting significant operating losses.
“With the easing of many of the restrictions related to football stadiums in August 2021, the internal financial projections for the year to 30 June 2022 are predicting a return to a more normal trading period, and with the benefit of the season ticket credit donations we expect to report an operating profit for the year.
“Due to the principal activity of the company, the revenues of the business are inherently linked to the on-field performance and success of the football team.
“The performance of the team in previous years 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 being relegated to the Championship again.
“The owners and board are committed to providing the required funding and infrastructure in the club to maintain it as a competitive team and going concern in the Premiership, and also to provide the platform to enhance the team’s prospects of a top-six finish and qualification for UEFA competitions.”
United currently sit in sixth place in the Premiership, and Ogren has set rookie boss Tam Courts the target of finishing regularly in the top half of the table
“Tam’s remit is to continue with the club’s key vision of developing home grown players for the first team as well as cultivating a long-term game model across all teams and age groups within the club, with the primary objective of attaining a regular top six Premiership league position,” he said.