Dundee yesterday posted their annual financial results for the year ending 31 May 2017 which showed a loss of £354,000.
The clubs accounts showed a £737,501 profit from the sale of Kane Hemmings and Greg Stewart to Oxford and Birmingham but this still didn’t stop owners Football Partners Scotland (FPS) having to put in £785,000 of their own money to subside the losses. This took their overall investment into the club to just short of £1,300,000 which will see the Americans own 75% of the club when they turn the loans into shares.
In a statement released yesterday, the club said: “The losses require to be funded and the company received advances of £785k from its main shareholder FPS (Football Partners Scotland), making an aggregate of £1,277k.
“It is the intention for these advances to be turned to share capital. The board intend to issue additional shares to a value of £1.5m and this will make FPS the holder of 75% of the equity.”
The statement continues with the club believing they underperformed last season, failing to make the top 6 which inclines they may have budgeted for such finish. The owners also expect to make a loss next year and years to come until a new, financially improved TV deal can be agreed or they can add to the current home support of 3,500 and increase it by 1,000 “that would put the Club essentially into a breakeven position.”
A change of manager and backroom staff along with playing staff accounted for this year’s losses as did the expected rise in the cost for leasing and maintaining Dens Park. The previous year’s statement in regards to this for accounts ending May 2016 said: “The effect of these accounting charges will require an additional £500k having to be provided in the 2017 accounts.”
The club hope that the size of the first-team squad can be reduced and judging by the wording in the statement, we might now see more youth players being given a chance as “The development squad is now providing a supply of players to the first team, something which has not been available to us for a number of years.”
FPS have also indicated that they will transfer their shares to the company that which is undertaking the development of the new stadium, Dark Blue Properties Limited. They are owned by Tim Keyes and John Nelms.
They ended the statement by implying the importance of the proposed new stadium: “The club have the commitment of its major shareholder that funding is available to us until we moved to new stadium and beyond and they provide a vital lifeline to ensure a viable and successful football club.”
Edited by UWTB1893