Dundee United have confirmed a £2.4million loss has been recorded in the club annual accounts.
The Championship side suffered the loss before notional interest costs - with the total loss reaching £2.8m.
However, chairman Mark Ogren has insisted the club remains on course to achieve long-term aims of becoming "sustainable and leading competitor within the Scottish Professional Football League".
Turnover at United was recorded to remain above £8m despite relegation to the Championship.
And investment in the club staff increased with wage costs up 18 percent to a total of £6.9m.
The club board have estimated a £2m-£3m drop in turnover as a result of dropping out of the top flight, however total costs for the first half of the season have subsequently lowered by more than £2m.
In a statement on the club website, Ogren said: “Quite clearly the 2022/23 season was a difficult one for the club. What started as a vision to continue progress and challenge within the top six of the Premiership once again, ended with the ultimate disappointment of relegation.
“Turnover remained high at over £8 million and a significant factor to this was the continued loyalty of the fanbase with over 5,800 season tickets sold. Our appreciation for the fanbase is unequivocal.
“Unfortunately, as wage costs increased significantly following investment in the playing squad at the beginning of the campaign, prize money, crowd receipts, and other income fell as the club’s fortunes on the park weakened.
“The required changes were made across the football department including the change of management teams and these costs are reflected in these accounts. In the summer, Jim Goodwin was confirmed as first-team Manager, and the board remains convinced that he and his staff will lead the club to future success. The club remain on course with the short-term ambition of a return to the Premiership following a positive first half of the league campaign and that has been assisted by superb backing from our loyal fans; we have no doubt that will continue as we head towards a conclusion to the league campaign.
“A full review was conducted in the summer across the club. Dropping down to the Championship is extremely challenging financially for the business. The board estimate a £2-3 million drop in turnover. To overcome this, there have been fundamental changes within the club during the summer of 2023 which are detailed in the Strategic Report.
“These changes include greater cost control, cohesion, and communication across the club. We are already seeing the positivity in these changes. Our total costs from July to December in season 2023/24 are more than £2 million less than at a similar stage in the 2022/23 season.
“We have continued our ongoing commitment to the Dundee United Academy and our Elite CAS status has been maintained. This, alongside the state-of-the-art Foundation Park facility, will continue to allow the Academy to flourish and continue to produce more graduates into our first team. The board appreciate the funding and support from the Dundee United Supporters Foundation towards the Foundation Park project and ‘bricks and mortar’ projects and hopes this relationship continues as we look to maintain and improve Tannadice Park moving forward.
“The board remain fiercely proud of the work done in the community by DUCT, our community trust. The tremendous efforts of staff have overseen £1.8 million worth of action in the local community over five years. Supporting DUCT remains an integral part of core ambitions within the business.
“The Dundee United Women’s team continue to compete in the top league of the SWPL and this achievement should not be underestimated, praise must go to the players and staff for representing our club in such a manner.”
“Finally, the board are confident that despite the difficulties of 2022/23, we remain on course to achieve the long-term aim of being a sustainable and leading competitor within the Scottish Professional Football League.
“On behalf of the board, I would like to thank all employees, players, supporters, sponsors, and partners for all their continued support.”
