Blackpool FC make Â£1.8m loss during League One relegation season
Accounts just released by Blackpool Football Club show it made a loss of Â£1.8m in the season it was relegated from League One to the bottom tier of the Football League.
This is a huge drop from 2015, where the club made an operating profit of Â£7.5m during its relegation from the Championship.
The report, which covers the financial year up to May 31, 2016, also shows the club’s turnover was Â£4.4m, down from Â£18m in 2015.
This leaves the club having year end cash balances of Â£6.8m.
Spend on players and managers wages in the financial year was Â£2.6m, down from Â£6.4m in 2015. The wage bill for players was halved from Â£7.2m to Â£3.3m.
Gate receipts dropped from Â£931,401 in 2015 to Â£608,225, while receipts from season ticket sales slipped from Â£1.3m to Â£718,438.
Bar and food sales also dropped to Â£345,275 from Â£490,607 the previous year.
The club made Â£838,094 in transfer fees. Turnover from sponsorship and advertising was just Â£143,840, down from Â£295,040.
During the year the club had 114 employees, down from 124 the previous year and these included Karl Oyston and Owen Oyston, the principal directors.
According to the report, the club's main objective is to achieve promotion back to League One and the Championship and will try and achieve this by "increasing the company's turnover through all revenue streams available".
A statement in the annual report said: “The club had been relegated from the Championship and faced a further period of transition at the start of the year, with a new manager recruited and a high number of new players.
“The team did not though perform to expectations and the club was relegated from League One.”
It went on to add: “There are a number of potential risks and uncertainties which could have a material impact on long term performance.
“The main ones being avoiding further relegations and maintaining and increasing the support base.
“The company still faces a period of transition but the company is not considered to be at risk, as the club still has considerable cash deposits gained from parachute payments from the Premier League.
“It is also still receiving transfer fee installments, hence the company has the resources to see it through this period of transition and the future.”
The report also says the legal action taken by club president Valeri Belokon against the Oyston family is “unlikely” to have any effect on the club since “no liability will fall on the company”.
To read the full report, click here.